Financial Goals:

1. Profitability and Revenue

Profitability is the most basic goal of our company. Our goal is to earn more revenue than we spend on
our operating expenses. Our business revenue includes income from services, interest on
investment/deposits and from the business properties we own. Operating expenses include payroll,
rent, materials, vehicle expense, advertising, utilities, interest payments, licenses and taxes. Our
profitability goals are sufficient to sustain stakeholders such as owners or investors and to enable the
business to save for expansion or capital revenues.

2. Decrease Costs
To control costs we would review our expenses to learn if we can cut our utility costs, reduce waste,
negotiate better contracts, decrease interest payments and find other efficiencies we haven’t
considered. We would bid out contracted services, such as insurance, information technology,
accounting, marketing to help us identify ways to trim our budget each year.

3. Improved Margins
We would also set a goal to improve our profits by improving our profit margins. We would reduce our
cost of production and overhead expenses and raise our prices. We would also test the market with
different price level in different locations before rolling out an overall price hike.

4. Debt Service Management

We would calculate the amount of interest we paid each year and set a goal of reducing our debt if we
feel the amount of interest we pay is too high compared to the benefit we are getting from our debt.
Reducing our debt can help us improve our credit score and get more credit and lower interest rates.
We would pay the balance of our credit card faster and look for new credit that offers a low-interest or
interest-free balance transfer. We would also meet our banker and other lenders to determine if we
could get more favorable terms, which might require transferring our business loan from one bank to
another.

5. Cash Flow Planning

Knowing how much we will need to pay our expenses is an important part of financial planning and a
master budget helps us prevent supervises. We would create a cash flow budget that lets us know the
exact amount of money we might take in and owe each month, in addition to creating a budget that
shows our monthly averages. Cash flow planning also helps us avoid a lack of cash that could stall or
shut down our business when we can’t pay our bills, even temporarily.
Financial Plan:
Sawari Pvt. Ltd will require a star- up amount of Rs.1,50,00,000. The promoters will contribute a total of
Rs.1,20,00,000 and the remaining Rs.30,00,000 will be borrowed from the bank as long term loan at 13%
interest rate. The money will be used for the purchase of furniture, machines and other essential fixed
assets for the operations of the business. The company has a target to make total revenue of
Rs.1,55,48,500 for the first year and increase it by 6.67% during the next year . The company will incur
profit from the first year. During the second year of operation, the expected net profit growth is 2.15%.
In the third year of operation, we expect to expand further by adding human resources with the income
retained from the second year. The net income growth for the third year will be 3.81%.