Example of Final Business Plan Speech
In this presentation, we will consider startup expenses, capitalization and overall financial plan for a startup.
On the Table 1 we can see the distribution of expenses that will be incurred in the beginning – the initial budgeting of the startup. It should be noted that the total capital volume is 5,000,000 HKD: two million is the owner’s capital, two million will be received as a bank loan, and the remaining million will be accumulated through investors’ funding. The business plan provides insights of the expenses required for the business operation. The highest cost is expected to be salaries, wages, and benefits – about 1,228,903 HKD. Additionally, a considerable proportion of expenses will be accounted to marketing activities: there will be personnel hired to design and manufacture the products and advance the product on the market. The estimated number of employees required for the business is 8 – 12 employees. Another categories of expenses includes equipment (500,000 HKD), digital and social media campaigns and sales promotions (500,000 HKD each), advertising (645,020 HKD), warehouse and office rental payments (30,000 HKD in the first year). The total amount of expenses needed to start this business is estimated at the level of 4,973,923 HKD, which is within the planned budget.
The second slide demonstrates a line chart that summarizes projected revenues and total expenses over the next four years of business operations. As calculated and showed in Table 2, the highest expense is staffing costs, which is 1,688,903 HKD, followed by marketing costs (1,645,020 HKD). The administrative cost is estimated at the level of 1,000,000 HKD. The lowest expenses will be rental payments for office and storage spaces – only 30,000 HKD, plus about 26,000 HKD for utility costs. Market research cost will be 75,000 HKD and miscellaneous expenses will be 5,000 HKD. As we can see from the above, the primary financial focus in this startup is on human resources and marketing – these two components are vital for establishing this business and building market presence.
On the slide #3, we can see the five-year financial projections for our business. According to the forecasts, we expect a revenue growth from 4,5 million HKD in the first year to about 8 million by year five. This growth is based on the successful strategic market expansion and product development and improvement. The initial losses are expected at the level of 473,923 HKD. With the above information, we expect that the business turns into positive profit values from year two, and will provide the profit of 2,944,994 HKD by year five. As we can see from the pie chart to the right, staffing costs will be about 35.2% of the overall expenses, marketing costs – about 32%, administrative costs and equipment will be about 20% and 10%, respectively. Other cost categories will not exceed 2.8% of the capital.
The fourth slide summarizes the business financial plan for five years, including estimated profits. As seen from this table, we expect a positive profit if 100,045 HKD by the end of year two. The profit is growing to 1,023,044 HKD by year 3, to 1,899,499 by year 4, and reaches its maximum by year 5 – the volume of profit will be 2,944,994 HKD.
The last slide summarizes the key financial ratios we expect for this startup. The current ratio of 2.10 in year 1 will be decreased to 1.14 in year 5, which still demonstrates strong and stable position of the business, indicating solid liquidity. The debt ratio is estimated as 1.00 in all five years, showing a balanced approach to financial leverage. The most important, we expect our return on assets to change from the negative value of -0.13 in year 1 to 0.58 in year 5, which means increasing in operational efficiency and profit growth.
