1. Learn | Consult | Research
Business Plan and Presentation
III. Financials – Growth and Risk
By: Sohan Babu Khatri
CEO
Three H Management

2. Sohan Babu Khatri - Introduction
Professional Engagements:
• CEO – Three H Management Pvt. Ltd
• Director of Board – Grand Bank Nepal Ltd , Just-One-Nepal, SCDRR-Nepal
Resource Person:
• Ace Insititute of Management
• Kathmandu College of Management
• HVAP – MoAD (SNV)
Educational Background:
• Bachelor’s of Civil Engineering (BE Civil) - Pulchowk Campus, Institute of
Engineering, Nepal
• Masters of Business Administration (MBA - Finance and Marketing),
Bangalore University, India
• Certified Financial Manager (CFM), Centre of Financial Management, Bangalore
• Licensed International Financial Analyst (LIFA) - Charter Holder – International
Research Association, Cambridge, Massachusetts

4. Agenda for three sessions
Day 1 - Business Idea and Concept Presentation
Day 2 - Marketing Plan and Presentation
Day 2 - Operational Plan and Presentation
Day 3 - Financial Plan and Presentation
Day 3 – Growth/Sustainability/Risk Management
Plan and Presentation

6. The whole aim of this part is

8. Capital and Investment
• Capital Plan
– Equity
– Debt
• Long Term
• Short Term
• Investment Plan
– Assets
• Fixed Assets
• Current Assets (Working Capital)

9. Revenue Projection
• Sales Projection
• For each revenue model
• Should match with your pricing strategy
• Should matching with your target market
projection and your target segment growth
• Show projection at least for 3 years
• Justify your claims with proper data related
to your opportunity, target market and
competition
• Be Realistic

10. Cost Projection
• Cost of Goods Sold
– All materials
– All labors
– All direct overheads
• Add Operating Expenses
– Add administration and general overheads
• Categorize them
– Add marketing and promotional costs
• Categorize them

11. Profit
• Revenue minus all costs
• Project Realistically
• Deduct all interest costs and taxes to
arrive at Net Profit

12. Three Important Financial Statements
• Income Statement
– Statement of Profit and Loss
• Cash Flow Statement
– Statement of Cash Inflow and Outflow
• Balance Sheet
– Statement of Assets and Liabilities/Capital

13. Critical Performance Ratios
Total Asset Turnover
Sales
Total Assets
Debt to Equity
Total Liabilities
Total Equity
TotalSales
ofitNet
NPM
Pr
yTotalEquit
ofitNet
ROE
Pr
sTotalAsset
ofitNet
ROA
Pr

14. Learn | Consult | Research
Growth Plan

15. Growth Plan
• Do you have growth plan ?
• How are you going to achieve it ?
• Will it be supported by the available and
potential market ?
• Will market also be growing ?
• Do you have plans to add features ?
Diversify ? Expand ?
• How are you going to manage resources
with your growth plan ?

16. Learn | Consult | Research
Risk Analysis and Contingency Plan

18. Principle
• Find out the sources of risk on each
estimation and projection you did so far
• Expose the potential risks and ways of
tackling them
• Do you have Plan B if your
estimations/projections/assumptions goes
wrong ?

19. …..
• Can you adjust this business model to
have alternative value proposition ?
• Is there possibility of Changing the whole
business model to a profitable one ?
• Justify everything with objective and
realistic data and information.

20. Order of Presentation
• Sales Projection
• Income Statement
• Key Financial Ratios
• Investment / Capital Plan
• Growth Plan
• Risk Analysis and Contingency Plan

21. Learn | Consult | Research
Best of Luck !!
By: Sohan Babu Khatri
CEO
Three H Management