Business Plan - Capital Projections

Today we will discuss Capital and Expenses requirement of the company. Although we have discussed the cost of business in our previous post, here we will talk about what Venture Capitalist wants to see in these statements and how we can present it so that investors can be convinced.

If I am a Venture Capitalist, I would like to see if my investment in the company is spent wisely to generate profits. What is my Return On Investment? What are the risks involved in this investment? What is the waiting period before I start getting my returns? Are the targets set by the company are realistic and achievable? If yes, are those targets achievable in the time frame suggested by the company?

Keeping these questions in mind, let us make our projections for the investor.

Capital and Expense Projections


Asset

Year 1

Year 2

Year 3

Total

Equipment

$44,100

No Change

No Change

$44,100

Staff

$1,350,000

$1,485,000

$1,633,500

$4,468,500

Office Space & Equipment

$218,250

$240,075

$264,082

$722,407

Consumables

$2,400

$2,640

$2,904

$7,944

Maintenance

$12,000

$13,200

$14,520

$39,720

Travel

$50,000

$55,000

$60,500

$165,500

Miscellaneous

$480,000

$528,000

$580,800

$1,588,800

Totals

$2,156,750

$2,372,425

$2,609,667

$7,138,842


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