Financial planning covers the most critical aspects of the organization, provides the necessary preliminary control over the formation and use of material, labor, cash resources. The result of this type of preparation is a financial plan – a document characterizing the way the firm’s goals are achieved and linking its income and expenses (Lawson & Klontz, 2017). For the successful launch of the company OnFitWorld, there were studied financial planning topics, hiring and retaining competent employees, developed Income Statement, Balance Sheet, and the preliminary plan of project presentation for potential investors.
The company’s effective financial management is possible with planning all business flows, processes, and relations of the economic agent. An essential aspect of launching a project is developing a sound financial plan (Scarborough & Cornwall, 2015). One of its key elements is the Income Statement. The goal in preparing and forecasting such a report is to increase the company’s net profit by reducing the cost of production and increasing revenues. The first year OnFitWorld will work only online; the second year – online and offline. For this reason, it is necessary to consider that there will be expenses for rent, repairs, and salaries for new employees in the second year. A projected Income Statement for the first two years of the business is shown in Appendix A.
A significant tool is the Balance Sheet of the company, based on which a financial plan is drawn up. The essence of this document boils down to the equality of opposite parts, assets, and liabilities. According to this report, one can judge the financial situation of the company on a specified date. The projected Balance Sheet for OnFitWorld’s first two years of operation is shown in Appendix B.
A Plan for Hiring and Retaining Employees
Employees are a vital component in an organization’s success and productivity. The first step to creating a good hiring plan is to figure out what talent the company is missing and a skills gap that needs to be closed (John, 2019). The program will consist of several key elements: analyzing the firm’s needs, determining the necessary tools, developing requirements for candidates, budgeting, optimizing processes if required. It is also essential to examine the number of employees, recruitment methods, and time for the procedures in advance. The first stages of the activity will be considered various methods of selecting workers of the required qualifications. These may be the services of specialized staffing agencies, self-study of employment databases, placing advertising in the media, search through acquaintances and counterparties. Depending on which method will be most effective, the emphasis will be placed on it in the future.
Another critical point is the continued retention of competent workers in job positions. Organizations need employees who are loyal and willing to work hard to achieve the organization’s goal. OnFitWorld needs to retain its valuable representatives who favor the company and increase the organization’s productivity. Retention aims to make both stakeholders, employees, and employers satisfied (Maylett & Wride, 2017). For this purpose, OnFitWorld will create open communication between workers and management, provide benefits and financial rewards, and use incentives and healthy competition to motivate. Job is a significant part of any employee’s day, so OnFitWorld needs to make the environment where its subordinates find themselves supportive and respect their time and consider their desires.
Presentation of the Project for Potential Investors
The main task of any project presentation is to attract the attention and interest of the listener. The company OnFitWorld plans to perform the project to potential investors in the form of a short thesis. Formatting will be made in a single style, as visual and straightforward as possible. As proof of the profitability of the project will be given facts and arguments. The critical point of the presentation – is the focus on the numbers, or rather – the organic application.
The presentation will start with the message, that is, the primary purpose of creating the project. It will serve as an introduction, which will help to bring potential creditors up to speed. A presentation will include figures and talking points, differences from direct competitors, and a visual prototype of the services. It will be shown in photos, screenshots, pictures or slides. Such a method will be more persuasive than a written or oral text description. The following step is market analysis and a business plan: it will direct evidence of the seriousness of opening a business project. Before the conclusion, a financial proposal will be presented, namely clearly articulated expectations: everything about money, what is to be invested in, what kind of profit it will bring. In conclusion, it will be necessary to repeat the main points in a thesis and clarify any questions or misunderstandings. Briefly, this plan can be summarized as follows:
- Objective and purpose of the project
- Presentation of the product
- Market analysis and business plan
- Financial proposal
The scope and format of the presentation will vary depending on the location and time of the display.
Any modern company that conducts economic activities in one area of business or another is engaged in planning. It plays a vital role in project efficiency and aims to maximize the organization’s productivity. A competent financial plan guarantees protection against risks and an optimal tool for managing internal and external factors that influence business success. Correct calculations will help ensure OnFitWorld not only provide current operational benefits but also help control the prospects to produce works and services for cash flow, investment activities, and the commercial development of the enterprise.
John, J. (2019). Effective recruitment strategy to improve your hiring process. ZENITH International Journal of Multidisciplinary Research, 9(3), 352-357.
Lawson, D. R., & Klontz, B. T. (2017). Integrating behavioral finance, financial psychology, and financial therapy into the 6-step financial planning process. Journal of Financial Planning, 30(7), 48-55.
Maylett, T., & Wride, M. (2017). The employee experience: how to attract talent, retain top performers, and drive results. John Wiley & Sons.
Scarborough, N. M., & Cornwall, J. R. (2015). Entrepreneurship and effective small business management. Pearson.
|Type of activity||First year, $||Second year, $|
|Cost of sales||(110000)||(210000)|
|Gross profit (loss)||50000||90000|
|Profit (loss) from sales||12850||20000|
|Profit (loss) before income tax||10850||21000|
|Current income tax||1302||2520|
|Net income (loss)||9548||18480|
|Category||First year, $||Second year, $|
|Total current assets||65000||125000|
|Property and equipment||50000||70000|
|Total current liabilities||70000||95000|