A business plan must include financial analysis, so how to do financial analysis? The following is compiled for everyone: Financial Analysis of College Student Entrepreneurship Plan, for reference only, welcome to read! For more information, please continue to pay attention to Financial Analysis of College Student Entrepreneurship Plan 1
1. Funding requirements description
When the company was established, each shareholder contributed XX million, and *** was the initial capital of XX million.
2. Capital investment plan
It is expected that a total investment of 220,000 yuan will be made in the first quarter to purchase factories and production lines for product research and development and market development, and a total investment of 14,000 yuan will be invested in purchasing raw materials to produce products. Ten thousand yuan. The salary for recruiting production and sales employees is 24,000 yuan, and other cash related to operating activities is 190,000 yuan.
Estimated first quarter income statement
Unit: Yuan
Estimated first quarter balance sheet
Unit: Yuan
Risk analysis
1. Market and competition risks
In market competition, the basic motivation and goal of competition is to maximize revenue. However, competitors' expected benefit goals are not always achieved. In fact, competition itself will also expose competitors to the danger of not achieving their expected benefit goals, or even suffering economic losses. The possibility that the actual realized benefits deviate from the expected benefit goals is the risk faced by competitors. Risk is the possibility of loss or gain caused by uncertainty. In market competition, there are many uncertain factors. Although every competitor hopes to achieve its expected benefit goals, not all of them can succeed. Some competitors will inevitably lose in the competition and suffer losses from competition.
Analysis: Insufficient customer resources, unclear publicity effect, and inaccurate price positioning.
Countermeasures:
1. Increase publicity and improve service quality.
2. Preliminary market research and continuous search for personalized products.
3. Service innovation, using alternative innovative thinking to serve enterprises.
2. Product and technology risks
Analysis: peer competition and strong imitability.
Countermeasures:
1. Improve product quality to ensure that your customer base is not lost.
2. Continuously conduct market research to determine service types in order to seek more markets and build the company's brand.
3. Seek innovation, so that I have what others don’t have, I have the best when others have it, and I have the best when others have it.
3. Financial risks
Analysis: Insufficient funds, poor early capital cost control, and the company's inability to remit money in time.
Countermeasures:
1. Establish a financial early warning analysis indicator system to prevent financial risks. The root cause of financial crises is improper handling of financial risks. Therefore, prevent financial risks, establish and improve financial Early warning systems are particularly necessary.
2. Establish a short-term financial early warning system and prepare a cash flow budget. Since the object of corporate finance is cash and its flow, in the short term, whether a company can be sustained does not entirely depend on whether it is profitable, but on whether it has enough cash for various expenditures.
3. Establish a financial analysis indicator system and establish a long-term financial early warning system. For companies, while establishing a short-term financial early warning system, they must also establish a long-term financial early warning system. Among them, profitability, solvency, economic efficiency, and development potential indicators are the most representative.
4. Establish risk awareness, improve internal control procedures, and reduce potential risks of contingent liabilities. For example, before entering into a guarantee contract, the credit status of the guaranteed enterprise should be strictly examined; when entering into a guarantee contract, the counter-guarantee and exemption clauses of guarantee liability should be appropriately used; after the conclusion of the contract, the solvency of the guaranteed enterprise should be followed up and examined to reduce direct risk losses.
5. Make investment decisions scientifically
4. Management risks
Analysis: The person in charge has poor management, causing the company’s operations to be hindered; management experience is insufficient, and the company’s various Departments cannot work closely together and develop in a coordinated manner.
Countermeasures:
1. Improve the management mechanism and strengthen the reward and punishment system.
2. Find more customer channels to create more benefits for the company.
3. Higher-level technical personnel can be hired to guide the operation.
5. Policy risk
Under the conditions of market economy, due to the influence of the law of value and competition mechanism, enterprises compete for market resources and hope to obtain greater freedom of activity. Therefore, It may violate relevant national policies, and national policies are mandatory and binding on the behavior of enterprises. In addition, the country can change policies according to changes in the macro environment at different times, which will inevitably affect the economic interests of enterprises. Therefore, due to the existence and adjustment of policies, conflicts in economic interests will arise between the state and enterprises, resulting in policy risks. In this regard, our company's prevention of policy risks mainly depends on market participants' understanding and grasp of national macro policies, and on investors' correct judgment of market trends. Losses from policy risks can also be reduced through insurance and other methods. Financial Analysis of College Student Entrepreneurship Plan II
1. Capital structure and early investment
The company’s early start-up funds mainly come from venture capital, personal investment and bank loans. The registered capital is RMB 1.15 million, including RMB 500,000 in foreign venture capital, RMB 100,000 in entrepreneurial capital applications for college students, RMB 300,000 in bank loans, and RMB 250,000 in trademark rights and patented technologies. The capital structure of the company in the early stages of its establishment is as shown in the figure.
Among the company’s registered capital, actual assets are 900,000 yuan. During the company’s establishment process, it requires website design and maintenance, logistics and warehousing equipment purchase and use, company various Department expenses and other investments, especially in major links such as logistics cargo warehousing, warehousing, transportation and distribution equipment, R&D marketing, and network platforms, will be strengthened. Efforts are made to use network information platforms in the early stages of development to facilitate manufacturers and sellers to understand cargo information; cargo warehousing, warehousing, transportation and distribution equipment to shorten the time of entering and exiting the warehouse, reduce access time, and reduce the distribution service turnover cycle; through marketing and advertising Promote and improve the company's visibility; continue to conduct research and development, develop advanced software management systems, design more scientific cargo distribution routes, and reduce costs. While doing a good job in running the company, we should also constantly optimize the company's internal situation and strive to achieve a reasonable and continuous optimization of talent allocation. To this end, the company makes the following allocations based on its financial situation.
2. Financial budget and analysis
The financial budget is a series of various value indicators that specifically reflect the company's expected financial status and operating results within a certain future budget period, as well as cash receipts and expenditures and other value indicators. A general term for a budget, which specifically includes cash budget, projected income statement, projected balance sheet, projected cash flow statement, etc.
The financial budget is an integral part of the company's comprehensive budget system. The financial budget makes the decision-making goals concrete, systematic and quantitative. It can reflect the results of the special decision-making budget and business budget during the operating period, so as to ensure the implementation of the budget. The situation is clear.
2.1.1 Company financial budget preparation method
When the company makes financial budgets, we use the rolling budget budget preparation method to facilitate the adjustment and revision of the company's finances. The rolling budget, also known as the sustainable budget, prepares the annual budget for the following year before the current fiscal year, and prepares the budget for each quarter according to the specific circumstances of the budget. Its main features are: adjusting and revising the budget for subsequent periods based on new circumstances, and supplementing the budget on the basis of the original budget, thereby rolling backward period by period, and continuously planning future operating activities in the form of a budget.
1) Long-term budget (fiscal year budget data)
2) Short-term budget (quarterly budget data)
2.1.1 Company financial budget preparation< /p>
The estimated cash flow statement is a financial budget that reflects the cash inflow and cash outflow of the enterprise in a certain period. It reveals the operating activities, investment activities and financing of the enterprise in a certain period from the two aspects of cash inflow and outflow. The cash flow generated by the activity.
The estimated cash flow statement for a certain year during the company's normal operating period is as follows:
The estimated income statement is a financial budget that comprehensively reflects the results of the company's operating activities during the budget period. It is based on sales,
Preparation of relevant information on product costs, expenses and other budgets. It is a financial analysis that reflects the production and operation status of the enterprise during the planned period, and is an important basis for predicting the final results of the enterprise's operating activities.
The budget income statement also reflects the profit achieved by the company during a certain accounting period and the recovery of the company's losses.
The estimated income statement for a certain year during the company's normal operating period is as follows:
The estimated balance sheet is a financial budget that comprehensively reflects the financial status of the company during the budget period. It is based on the assets at the beginning of the period. It is prepared based on the balance sheet and adjusted based on relevant data of sales, production, capital and other budgets. Financial Analysis of College Student Entrepreneurship Plan Three
1. Balance sheet budget
Usually many companies do not do balance sheet budget. The main reason is its uncertainty. The budgeted balance sheet may not reflect the operating results in a certain period. As we said before in the cash flow statement budget, the balance sheet reflects a "point in time" concept. It is not an easy task to determine the level of each asset and liability item at the "point" at the end of the period. Not only are the assumptions used highly subjective, but also, as in the accounts receivable example above, the balance of some items today may be very different from the balance tomorrow. Money is mobile, and it's hard to know what will happen in the next second.
Of course, the balance sheet budget is not without rules, especially for some companies with relatively stable businesses. Generally speaking, unless there are special investment projects or business adjustments, the balance sheet budget of each item The level should be basically fixed. Even a brand-new company can still make an asset-liability budget, but it needs to be particularly careful in the selection of settings. Below are some of the most basic assets and liability items for explanation according to the order from left to right and top to bottom of the balance sheet, for reference only:
1. Cash and bank deposits: this, etc. Do it last.
2. Inventory: Generally, it can be estimated based on a certain proportion of sales (finished goods) plus a certain proportion of product sales cost (raw materials). Finished goods can also be calculated using: ending quantity = beginning quantity + budgeted production quantity – budgeted sales volume. If it is a brand new enterprise, the opening number will of course be "zero". As for the end-of-period level of raw materials, companies usually reserve a certain proportion based on production volume.
Of course it is possible to make the calculation more complicated. Then we must first calculate the production cost, then calculate the product sales cost, and then calculate the inventory balance of the inventory. To calculate the production cost, factors such as the optimal purchase quantity of each variety of raw materials, the usage time of each batch of purchase (or consumption within a certain period of time), unit price, inventory and warehousing costs must be taken into consideration. The cost of product sales must be linked to the company's sales plan, and other factors related to sales must also be considered (such as returns, sales not meeting expectations, etc.). In addition, the minimum inventory of each product variety must also be taken into consideration.
3. Accounts receivable and notes receivable: Of course, a certain proportion of sales revenue is used. Mainly considering the average turnover days of accounts receivable in this industry. This calculation is very judgmental (very subjective), but there seems to be no better way.
4. Fixed assets, construction in progress and deferred assets: This part is relatively easy. If capital expenditures have been budgeted, deducting depreciation or amortization is the asset balance we need.
5. Long-term investment: Generally, new companies do not have long-term external investment when they first start business. But if there is, it shouldn't be difficult to estimate the amount based on the actual situation.
6. Accounts payable: This can be calculated based on a certain proportion of product sales cost. The basic idea is similar to the calculation of accounts receivable.
7. Wages payable and welfare fees payable: Generally, one month’s labor costs/expenses are used to list them. However, personal income tax must be deducted because personal income tax is included in the tax payable.
8. Taxes payable: Taxes can be based on sales (used to calculate "business tax" and "VAT" output items), cost and gross profit ratio (VAT), labor costs and expenses (personal income tax) ), net profit (corporate income tax), import and export amounts (tariffs), etc., as well as some company-specific matters (stamp duty, vehicle and vessel use tax), it is not very complicated to calculate.
9. Bank borrowings (long-term, short-term): estimated based on the company’s financing policies and plans and the expected repayment period.
10. Paid-in capital and share capital: listed according to the company’s funding structure and sources, the progress of shareholders’ investment, etc. If it is a start-up enterprise and the institution has not yet identified shareholders/equity capital, it can be listed as all the funds required minus the expected bank financing. The total amount of funds required is calculated by the "budget of financial requirements" mentioned earlier. The basic number should be = the company's initial capital investment + the capital gap in operations. The funding gap can be filled with further investment from shareholders or financing from bank financial institutions.
11. Undistributed profit: It is actually the net profit on the income statement. This is the link between the income statement and the balance sheet. I guess I don't have to explain it here.
There are more than 40 items on the entire balance sheet. I have only talked about sixteen or seven here, mainly focusing on the key points. Some projects are not very important to begin with, or are simply not available for a newly opened company. I won’t go into details here.
In addition, sometimes in order to achieve a certain asset-liability ratio, current ratio, or debt-to-equity ratio, we can also appropriately adjust the total amount of assets and liabilities, and the short-term and long-term balance between assets and liabilities. Proportions etc. This requires the use of other receivables, other current assets, other long-term assets, other payables, other current liabilities, other long-term liabilities and other items. A certain ratio of financial indicators is achieved through appropriate adjustments to these accounts.
As for the first item of cash and bank deposits, after all items are arranged, the remaining balance will be placed in cash. The only requirement is: there cannot be a negative number, because no bank deposit account in China will be in deficit. In foreign countries, if an agreement is reached with a bank and there is a deficit or overdraft in the bank account within a certain range, the bank can treat it as a short-term loan.
2. Zero-based budgeting, incremental budgeting and comprehensive budgeting
We have spent a lot of time talking about how to make a budget for a newly opened or still startup company. In other words, it is a mid- to long-term plan. In terms of budgeting method, this is called "Zero Based Budgeting" (ZBB), which does not have any base budget. In other words, there are very few base numbers and historical data for reference, and producers must make budgets based on their own experience and judgment, as well as expectations for changes in the surrounding environment. This is very challenging for financial personnel.
Involving all departments in the budget process is especially important for zero-based budgeting. In many businesses, finance staff may be the spearhead of budget projects. But many business people think that budget is a financial matter and has nothing to do with me. To change this situation, financial personnel should try to involve more business departments in the budget production process. Let more people with experience in the industry contribute their ideas and judgment. At the same time, in the process of budget formation, each department must be allowed to "claim" its own budget, so that they feel that they are the "owners" of the budget. Only in this way will the budget produced be viewed and executed. Otherwise, it is just a piece of waste paper. Moreover, in the end, everyone will say that this budget was dreamed up by the finance department out of thin air, what does it have to do with me?
The opposite of zero-based budgeting is called "incremental budgeting" (Incremental Budgeting) . The focus of incremental budgeting is to find the change value of each item in the financial statement. Note that the "change value" mentioned here does not only increase but cannot decrease. Although the name is "incremental budget", it does not mean only increases.
The incremental budget method is mainly suitable for companies with relatively mature business models. When making a budget, the company already has 3-5 years of comprehensive financial data as a basis. If there are no major changes, just add or subtract possible changes.
Of course, ZBB and Incremental can be used at the same time. For example, a company with two business divisions is already very mature, but if it plans to develop a new business division next year, it is almost equivalent to a completely new company. This allows you to use both methods for budgeting at the same time and then combine the results. In addition, if the company has some new investment projects or new product lines, it can use the ZBB method to make a project budget first, and then add it to the incremental budget of the existing business.
Incremental budgets usually take into account many changing factors in the next year. Here are just a few examples. They are likely to include:
(1) Factors affecting changes in sales: companies expand new sales channels to increase sales, add new varieties to original varieties, changes in sales unit prices, changes in sales methods wait.
(2) Factors affecting product sales costs: raw material price increases, worker productivity improvements, sources of raw materials or production equipment, changes in channels, etc.
(3) Factors affecting expenses: inflation, changes in the company's organizational structure, changes in personnel, the company moving to a new place, the company having new investments and financing, etc.
(4) Factors affecting changes in assets: changes in credit terms (accounts receivable), the company’s decision to invest in other projects (long-term investment), the introduction of new equipment (fixed assets), etc.
(5) If the company's assets increase, there will inevitably be an increase in liabilities or equity. Changes in the items on the right side of the balance sheet depend on how the company hopes to raise funds or attract funds. At the same time, these changes will also affect the increase or decrease in financial expenses.
In addition, the entire budget is an interconnected whole. Although we only see three major reports in the end: income statement, balance sheet, and cash flow statement, there is actually a lot of basic work to be done. To put it simply, there are the following aspects:
(1) The sales department first makes a sales budget. Based on the sales budget, the production department makes a production budget. The purchasing department then makes a purchasing budget based on the production budget. Transportation and warehousing The department then makes logistics plans or budgets based on the procurement budget. Only in this way can the sales volume and product sales cost figures be made and put into the income statement. Then according to the method we mentioned above, we calculate the ending inventory, accounts payable, etc. and put them on the balance sheet.
(2) The personnel department makes a headcount and recruitment plan based on factors such as production scale and sales scale, and then calculates personnel costs based on each person's possible salary level, annual inflation level, etc. cost. Among them, costs and expenses are included in the income statement. If wages are withdrawn first and then paid, don’t forget that the lender should place the wages payable, benefits payable, taxes payable and other items on the balance sheet.
(3) The marketing department formulates a marketing plan based on sales volume, unit price, product variety and other information, combined with corporate culture, goals, values ??and other factors, calculates a market expense budget, and enters it into the income statement.
(4) The business development department, production department, administrative department, etc. must formulate capital expenditure plans. Whether a new business department should be established, what kind of equipment should be purchased, whether new technologies should be introduced to expand reproduction, and whether there are any plans to expand the office or renovate it, etc. Real equipment and assets enter fixed assets, construction in progress, and deferred assets on the balance sheet. The corresponding depreciation and amortization are entered into the income statement. Of course, capital expenditures also enter the "cash flow from investing activities" in the cash flow statement.
(5) The treasurer or foreign investment and financing department should formulate investment and financing plans based on the general situation of the income statement budget and capital expenditure budget. If there is excess funds that can be invested, the investment projects are placed on the balance sheet and in the "cash flow from investing activities" in the cash flow statement. If financing is required, the financing amount is placed in liabilities or equity on the balance sheet, and in the "cash flow from financing activities" in the cash flow statement. In addition, investment income or interest payments involved in investment and financing must be placed in the income statement and appropriate accounts in the cash flow statement.
(6) Each department shall make a budget for the expenses that may be incurred by the department. Among them: wages, benefits, depreciation/amortization are already there. The budget of each department mainly focuses on the expenses of the department, such as travel expenses, communication expenses, printing expenses, etc.
Through such a rough process, are all assets, liabilities, equity, income, costs/expenses, and profits almost in place? Various departments also participate in the budget formulation process in different ways. . Moreover, the linkage between each branch's budget items in the overall budget is also obvious.
Finally, what the Finance Department needs to do is to summarize and properly balance the budgets of the major reports, and at the same time, calculate tax and other data. Costs and expenses also need to be allocated among different products or projects in different departments. Calculate some key indicators (KPI) for your boss to review.
After that, it may take a few more back-and-forths for each department to revise the budget, and then summarize and revise it again until the budget is relatively perfect.
3. Turn uncertainty into profit
(1) Uncertainty and risk
Why are business operations risky? This is because all decisions All decisions are based on budgets, and all budgets depend on varying degrees of uncertainty. Humanity’s prediction of the future is extremely limited. It is impossible for us to know what will happen in the next few months, a year, or a few years. What's more, there are many things that are beyond our control, such as changes in market conditions, changes in exchange rates, changes in people's concepts, etc.
To give a very simple example, when we were working on the company’s 10-year plan before 1995, we would never have imagined that within a few years, the Internet would have a profound impact on business models, business models, consumption concepts, and people’s daily lives. Such a huge impact on life. To be more specific, we certainly would not have thought at that time that we could sell products in an online virtual store without opening a physical store. We could not only sell products to local and domestic customers, but also sell products to many foreign customers. , thereby increasing a large amount of sales. At that time, we would not have thought of estimating a piece of electronic media promotion and advertising expenses among marketing expenses. I would never have thought that coupons could be sent via email, with no printing costs or delivery personnel costs at all. And so on.
So, what factors cannot be determined at the time of budgeting? In other words, what factors will occur in the future that will make our pre-judgment of the business less certain?
To put it in more formal terms: uncertainty in the economic sense. For example: changes in the economic cycle, concepts that are difficult to define, factors that cannot be measured, etc. In fact, what we usually say is changes in income and costs caused by changes in the market environment; changes in asset values ??caused by specific environmental changes; changes in external factors such as exchange rates, tax rates, interest rates, and inflation; changes in social factors that lead to people’s consumption habits , adverse effects brought about by changes in concepts, etc. There are also uncertainties in business management, especially human factors, which are the least certain.
However, if uncertainty is overemphasized, there will be no way to budget. Because uncertainty cannot be measured. Accounting talks about the principle of "monetary measurement". Things that cannot be measured cannot be reflected in the statements. But there is no solution at all. In economics, "risk" can be measured. So, how to turn uncertainty into a measurable risk?
From an accounting concept, risk is roughly reflected in the following forms: "water" in operating income, potential increase in operating costs Possibility, exchange losses and increase in financial expenses caused by changes in interest rates and exchange rates, impairment of short-term investments, valuation of non-performing inventories, revaluation and impairment of obsolete equipment, misrepresentation of long-term investments, revaluation increases and decreases in land, Pending litigation, commitments, environmental liabilities and costs, subsequent events, contingent liabilities, etc.
(2) Turn uncertainty into numbers
There are actually many methods we use to measure risks and assess the impact of risks. To sum up, the main ones are:
a. Scenario Planning
b. Contingency Planning
c. Extrapolative Forecasting
d. Sensitivity Analysis
e. Simulation
f. Decision Tree
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