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Discuss with Management about future plans
Especially enquire about
- Approximate Fund Requirement
- Existing Sales
- Future sales to be achieved
- Sales Product vise (Quantity, Rate, Amount) of different items
- Domestic Sales and Export Sales component
- Sales Order already received and to be received and when sales will start for these orders
Discuss with Production team about
- Whether Company has the Production Capacity to achieve this sales
- If no whether new machinery to be installed
- Cost of Project (Purchase Price of Machine and Installation Cost)
- Time Required for Installing Machine and Production to Start
- Product Costing (Cost of Different Expenses for making one product)
- Approximate Selling Price and margin on products
Discuss with Finance team about
- Where will money come from for new machines?
- If Loan taken for Purchasing Machine, how much loan required?
- Amount to be contributed by Promoter/Friends/Relatives/Related Company
- Rate of Interest on Existing and New Loans
- Repayment Terms of Loan
- Any Moratorium Period for Loan (No of months after which repayment will start
- Existing Loans ,their Source of Funds and Rate of Interest
Ask Accounts team for
- Audited Profit and Loss and Balance Sheet of Last few years with all schedules and notes
- Current Year Provisional Profit and Loss and Balance Sheet till Date
- (Suppose making assumptions in July, ask for Provisional Balance Sheet till 30 June)
Steps After Gathering Assumptions
- Note down all the points discussed and Compile them
- Send mail to different departments to confirm points discussed
- If some fresh points received ,include them also in assumptions
- On basis of decided assumptions, start making projections
(Note:-In small business ,all these may have to be discussed with a single person instead of whole team
Also some of these points may not be relevant or have to be modified depending upon type of business)
For example :- For Service Sector, there may be cost of providing service instead of cost of products)
