My Arabic restaurant business’s financial contingency
plan is made up of two categories which are:
- Raising more finance through internal and external sources of finance
- Cutting back on expenditure
Potential additional revenue
for the 1st year
Internal sources
Own saving: Raise
additional £6,000 from Directors.
Gifts from friends and relatives: Raise £ 3,500 given debenture stocks as security.
External Source of Finance
Grants and sponsorship: The Prince’s Trust is a charity that helps and
assists young people from 18-30 years old, who are aiming to starting-up
business venture. Therefore, this charity will help me as I fit into the age group
which will be very beneficial for my business. This charity provides 24 hours
legal helpline for free, online accounting system, free web design packages,
and many more. Furthermore, the services which they provides will help me to
start-up my business as they well support me if asks them for help.
Loan and Borrowing: Mortgages,
Bank loan, leasing, overdraft and venture capital.
Cutting-back on 1st
year estimated expenditure
It is very
important to cut back on expenditure and there is one way of doing this is by
investing money in the business very carefully on what the money is spend on. Therefore,
for my business I will set a department only for budgets. At the same time I am
going to review the cash-flow forecast regularly. However, the expenditure for my business would
include employees’ wages, premises, advertising, equipment etc.
