highwoods & associates sample business plan

Somaliland Citizens Organisation

Organisation

2012

Mr. Ahmend Mohamed

Founder

Legal Page Confidentiality Agreement

The undersigned reader acknowledges that the information provided by Mr. Ahmed Mohamed in this

business plan is confidential; therefore, the reader agrees not to disclose it without the express

written permission of Mr. Ahmed Mohamed.

It is acknowledged by the reader that information to be furnished in this business plan is in all

respects confidential in nature, other than information which is in the public domain through other

means and that any disclosure or use of the same by the reader may cause serious harm or damage

to Mr. Ahmed Mohamed.

Upon request, this document is to be immediately returned to _______________.

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Date

This is a business plan. It does not imply an offering of securities.


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Table of Contents 1.0 Executive Summary .............................................................................................. 2

Chart 1.0: Highlights ................................................................................................. 3 1.1 Objectives .............................................................................................................. 3 1.2 Mission .................................................................................................................. 4 1.3 Keys to Success .................................................................................................... 4

2.0 Organisation Summary .............................................................................................. 5 2.1 Legal Entity ............................................................................................................ 5 2.2 Start-up Summary .................................................................................................. 6

Table 2.2: Start-up ................................................................................................... 6 Chart 2.2: Start-up .................................................................................................... 6

3.0 Services .................................................................................................................... 7 3.1 You Can Make a Difference ................................................................................... 7

4.0 Market Analysis Summary ......................................................................................... 9 4.1 Market Segmentation ........................................................................................... 10

Table 4.1: Market Analysis ..................................................................................... 10 Chart 4.1: Market Analysis (Pie)............................................................................. 10

4.2 Target Market Segment Strategy ......................................................................... 10 4.3 Service Providers’ Analysis.................................................................................. 11

4.3.1 Publicity Ideas ............................................................................................... 11 4.3.2 Using the Media ............................................................................................ 12 4.3.3 Press Advisories and Releases ..................................................................... 13 4.3.4 Alternatives and Usage Patterns ................................................................... 14

5.0 Strategy and Implementation Summary .................................................................. 15 5.1 SWOT Analysis .................................................................................................... 15

5.1.1 Strengths ....................................................................................................... 15 5.1.2 Weaknesses .................................................................................................. 15 5.1.3 Opportunities ................................................................................................. 15 5.1.4 Threats .......................................................................................................... 15

5.2 Competitive Edge ................................................................................................ 16 5.3 Marketing Strategy ............................................................................................... 17 5.4 Fundraising Strategy ............................................................................................ 17

5.4.1 Funding Forecast .......................................................................................... 18 5.5 Milestones............................................................................................................ 20

6.0 Management Summary ........................................................................................... 21 6.1 Personnel Plan .................................................................................................... 21 6.2 Exit Strategy ........................................................................................................ 21

6.2.1 Assess your options ...................................................................................... 22 6.2.2 Sticking with Survival .................................................................................... 22 6.2.3 Mergers ......................................................................................................... 23 6.2.4 Close ............................................................................................................. 23

7. Financial Plan ............................................................................................................ 24 7.1 Start-up Funding .................................................................................................. 24 7.2 Important Assumptions ........................................................................................ 25 7.3 Break-even Analysis ............................................................................................ 25 7.4 Projected Surplus or Deficit ................................................................................. 26


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7.5 Projected Cash Flow ............................................................................................ 29 7.6 Projected Balance Sheet ..................................................................................... 31 7.7 Standard Ratios ................................................................................................... 32

Appendix Funding Forecast................................................................................................. 1 Personnel............................................................................................................. 2 Surplus and Deficit............................................................................................... 3 Cash Flow............................................................................................................. 4 Balance Sheet...................................................................................................... 5


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1. Executive Summary

Somaliland Citizens Organisation is a new not-for- profit business venture to help the people of Somaliland, a country in the north west of Somalia. Our aim is to work with local people to help transform their community for the better from what they believe it should be. We would want to challenge the people to imagine the change that can be accomplished by connecting with individuals within their communities to multiply power and in effect mobilise them to make their voice heard. We aspire to set audacious goals, and create strategies to meet those goals and ultimately take on powerful interests that stand in their way.

Chart 1.0: Highlights

1.1 Objectives

Somaliland Citizens Organisation is a new not-for-profit community organisation helping people in Somaliland to work together to change their communities and the country for the better. Somaliland is a country with needs that must be addressed urgently. The situation is even more complicated because of its recent problems with health, education, food, insecurity, water supply, HIV/AIDS and infrastructures.

Although the war in Somaliland is over, the humanitarian crisis is not. This brought about the establishment of the Somaliland Citizens Organisation in line with the International Community feeling to respond to the plight and the urgent need and


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assistance for the Somalilanders to rebuild their country. Subsequently, British Somalis and others have decided to take the initiative to collaborate with the International Community, NGOS, UN agencies and others who are striving to raise funds to enable the Somaliland people to rebuild their own country.

1.2 Mission

Somaliland Citizens Organisation mission lies in the pursuit of the following principles in empowering communities:

Commitment: We want to inspire pro-social friendships, strong interpersonal skills, and instil a sense of hope in the future for the community.

Responsibility: The focus of our organisation is to empower the community in establishing goals and following through on commitments.

Possibility: We want to expand the perspective of the community to make them aware of life’s possibilities.

Support: A community is dramatically influenced by their support system. We want to surround the community in a caring inclusive learning and awareness environment.

1.3 Keys to Success

Establish a strong network of support within the not-for-profit agencies around the world.

Launch a series of fundraising activities that will successfully fund the expanding programme.

Establish an effective training program for volunteers that will increase their ability to be successful communicators.

Establish effective educational and awareness programmes to protect the community


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2.Organisation Summary

Somaliland Citizens Organisation is a not-for-profit organisation focused on bringing social change through organising the community in Somaliland, internationally recognised as being autonomous of Somalia. The country has been devastated with two decades of war and this has left the country’s economic and infrastructure severely damaged. Somaliland Citizens Organisation aims to galvanise the local communities to help bring about strategies for social change. This would be achieved by letting people recognise the power that they need to achieve these changes; by allowing them to choose methods that make the most sense and most likely to achieve their goals. These communities sometimes find it difficult to embrace change and feel discouraged; however, they can be empowered to achieve remarkable results. There are seven basic principles that Somaliland Citizens Organisation will follow to help building a movement for social change, these are: 1. Non-violence - Preventing or minimising violence against ourselves, our

communities, and the environment. 2. Social Transformation - Identifying and addressing the root causes of

problems and creating solutions that truly make things better for all groups in society.

3. Organising - Offering people a system which gives the opportunity and support to work with others on the problems that they face.

4. Economic Equality - Putting basic human needs first; ensuring that everyone has enough before anyone gets more.

5. Direct Democracy - Giving people the power to control their own lives, and maximising their access to the decision-making processes that affect them.

6. Social Equality - Promoting participation and leadership to all, especially those who have experienced discrimination in the society.

7. Environmental Sustainability - Producing and promoting a cleaner and safer natural environment internally and externally, which is more in balance with nature.

2.1 Legal Entity

Somaliland Citizens Organisation is a tax-exempt not-for-profit community interest organisation providing support for the Somaliland community for social change.


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2.2 Start-up Summary

Our start-up costs add up to £1800, which mostly consists of stationery, legal fees and expenses associated with the opening of the charity. We will need cash to finance the first year of operations. The start-up costs are expected to be contributions from various private sponsors; the assumptions are shown in the following table.

Table 2.2: Start-up

Start-up Requirements Start-up Expenses Legal £50 Stationery etc. £50 Brochures £100 Local News Paper Ads £100 Consultants £250 Other £250 Total Start-up Expenses £800 Start-up Assets Cash Required £1,000 Other Current Assets £0 Long-term Assets £0 Total Assets £1,000 Total Requirements £1,800

Chart 2.2: Start-up


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3. Services

3.1 You Can Make a Difference The people of Somaliland should have a real voice in the decisions affecting their lives. Politics is hoped to be a dynamic, active and creative process in which people would participate in meaningfully. Governments would be directly accountable to the people that they affect.

Unfortunately, many of the people of Somaliland feel that they have no voice in governing their society and that a few powerful individuals have too much power and so, have influence over them. The people of Somaliland may think that no one else feels the way they do. They worry about what other people will say if they act, or whether their prospects for "success" will be threatened. Many of their cultures teach that women should defer to men, that middle class and wealthy people know more than working class and lower income people, and that the people in charge are supposed to be the leaders. They are encouraged to submit to their leader, to trust the "experts," and once every few years, to vote for candidates who at best seem to be the lesser of two evils.

Despite all these obstacles, people do act. The changes that have most improved peoples' lives in this century were not gifts given to them by "experts," but the hard-won results of organising change by "ordinary" people.

Somaliland history books often emphasise the "great men" who held positions of power and importance. In fact, history is made by all of them – The Grassroots Organisers.

When people act as individuals, their actions may seem small and unimportant. But when they act collectively in the community - neighbourhood, workplace, school, small town, bioregion, wherever their community exists - anything is possible.

Making the decision to participate in public life is no small thing. It demands commitment, sacrifice, and an openness to change. But the rewards are many: new skills, a sense of purpose, work that's enjoyable and meaningful, awareness of how the society operates, and a feeling of community that comes from working together with others for the vision of a better country.

3.2 i-Volunteer

Somaliland Citizens Organisation’s i-Volunteer programme in Somaliland has a goal to build the capacity of Somaliland community based organizations (CBOs) and non-government organisations (NGOs) by providing work placements within the Somaliland community to enthusiastic and talented volunteers from around the world. These volunteers are expected to work in multiple locations along the border under key sectors such as education, health, media and human rights.


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Somaliland Citizens Organisation aims not to charge a programme fee. Placements are unpaid and volunteers have to cover travel, visa and personal insurance costs. Positions sometimes provide accommodation, food and local transport costs to save the volunteer the expenses of day-to-day living.

Definition of volunteering “Volunteering is the commitment of time and energy to the provision of services and programmes that benefit the community and the volunteer. It is undertaken freely and by choice, without financial gain and in designated volunteer positions only. Volunteering takes many forms and can take both an episodic, informal and a more structured formalised approach”. Benefits of becoming a volunteer in Somaliland Volunteers significantly enhance the quality of life, community spirit and leisure time opportunities in the region and volunteering promotes enduring social, cultural, environmental and economic values to Somaliland citizens and the community. Somaliland citizens also recognise that it is important for members of the community to have the opportunity to participate more in community life and to give of and develop their skills, interests and expertise. Without our volunteers, the council would be unable to offer the quality and depth of programming and services provided to the community. Somaliland is committed to meeting best practice standards for the volunteer programme and providing a collaborative, supportive and safe working environment for volunteers. In addition, the council aspires to make the volunteer experience an enjoyable and rewarding one; to encourage personal and professional growth for council volunteers. Becoming a volunteer is a great way to: * Get actively involved in your community * Help someone else * Build confidence * Meet new people * Feel needed by the community * Learn new skills * Gain valuable job experience * Make a difference


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As one change organiser put it, "After I became an activist, I wasn't afraid of the world anymore."

Eight steps that Somaliland Citizens Organisation will implement in organising change are to:

1. Identify the issue 2. Get background information on the issue 3. Define goals 4. Plan strategies 5. Get support 6. Take action 7. Assess results 8. Modify strategy and act again.

4.0 Market Analysis Summary

Somalia faces a number of major obstacles to development: civil conflict, the lack of a fully functioning central government, and natural calamities such as drought and floods. In addition, the on-going armed struggle has often prevented much-needed humanitarian assistance from reaching the population. Poverty has inevitably increased since the early 1990s due to the collapse of the government and the onset of the civil war. About 43 per cent of the population live in extreme poverty, or are on less than US$1 per day. This figure rises to 53 per cent in rural areas, where extreme poverty is more prevalent. Health indicators for the population have shown a decline since 1991, an inevitable consequence of the collapse of public services and destruction of infrastructure. Child survival improved after the famine of the early 1990s, but is still low and has deteriorated since the end of the 1990s. Malnutrition continues to be prevalent throughout the country.

One of the regions that have established autonomy and experienced relatively peaceful conditions is Somaliland found in the North-West of Somalia. It has achieved a greater degree of stability than the rest of the country. The southern part of the country, where conflict has raged for more than 15 years, is inevitably poorer and in a more critical situation regarding food security, infrastructure and services.

Social groups that were already vulnerable prior to the 1990s have been further marginalised by the conflict and generally made unstable. In particular, indigenous groups and ethnic minorities have fallen into greater poverty, and many have been expelled from their traditional lands.

Women have a particularly low status in Somalia. Many are illiterate or poorly educated, and they have inadequate access to health and family planning services. Female genital mutilation is widespread. The country has one of the highest rates of maternal mortality in the world. Every day, about 45 women die as a result of pregnancy and childbirth.


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4.1 Market Segmentation

The target market for Somaliland Citizens Organisation ranges across different age groups and generations.

Table 4.1: Market Analysis

Market Analysis 2012 2013 2014 2015 2016 Potential Customers Growth CAGR Community Youth: Ages 16 to 24

50% 10,000 15,000 22,500 33,750 50,625 50.00%

Young Adults: Ages 25-39

20% 7,500 9,000 10,800 12,960 15,552 20.00%

Matured People Ages 40 to 60

30% 10,000 13,000 16,900 21,970 28,561 30.00%

Total 36.24% 27,500 37,000 50,200 68,680 94,738 36.24% Chart 4.1: Market Analysis (Pie)

4.2 Target Market Segment Strategy

Somaliland Citizens Organisation has a number of market forces that are key to the programme’s success:

To help the local community understand the purpose of leadership and the role of an effective leader

To help people understand the importance of empowerment To help people understand what broad based organising is about To help to foster democracy To teach people about sustainable development


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To teach people about the environment To give citizens a voice for action To campaign on issues that affect the community

4.3 Service Providers’ Analysis

Somaliland Citizens Organisation offers communities support and an opportunity to work on issues that will improve their ability to develop a positive attitude towards their future. The long-term goal of Somaliland Citizens Organisation is to empower the community to break the forces that are leading the community for the worse.

Effective publicity is essential to the success of any event or campaign. Since the power of community groups depends on people, getting the word out to the public is one of the most important things you can do. It requires a well-thought-out strategy based on specific guidelines.

Somaliland Citizens Organisation has four programmes that will help the community to carefully plan publicity strategies, involve and impact as many people as possible: They are:

Simplicity To keep our message short, understandable, and simple so that people can get a good idea of what we are doing with just a brief description. Clarifying our message has the added benefit of clarifying our mission as well.

Language

Not to use jargon, slogans, or acronyms without defining them. A complex issue would be explained in ways that everyone can understand.

Positive Approach

To balance criticism with positive alternatives since progressive groups are often criticised for over-emphasising the negative.

Repetition

People should hear or read about any one of our events at least seven times, as a result, we would use several kinds of media - radio, TV, newspapers, internet, other organisations' newsletters, posters etc.

Reputation

Publicise our group as well as our events by taking every opportunity to list our group's name, a contact person, the time of our next meeting, and how people can get involved.

4.3.1 Publicity Ideas There are effective ways to publicise without depending on the media.


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Personal Contact and Word of Mouth - Personal contact is one of the best (and cheapest) means of publicity. Each of our members should be encouraged to bring at least a half dozen people to an event. Practice by telling each other, in three easy sentences, what the event is and what it is supposed to accomplish. This also helps in writing up calendar announcements, leaflets and posters.

Posters – We would keep it short, simple, loud, eye-catching and legible - people should be able to see it from 20 feet away. We would make the rest of our text short so that people would be able to read it in less than one minute using just one type of lettering and no more than two colours.

Don't make it too crowded - leave white space on the page. Clear and powerful pictures and graphics can really add to a poster. Don't forget to state the time, date, and place of the event. Include a telephone number for further information. Put up posters in areas where a lot of people hang out and re-poster high

traffic areas again before an event.

Leaflets - Leaflets are good for publicising an immediate and urgent event, like an emergency rally, and for distributing information to passers-by at demonstrations, tabling, vigils, or actions. One person can distribute several hundred leaflets in an hour. It is recommended that one should smile and be cheerfully unthreatening when handing them out and thank people who show an interest. Be ready for rejection, as many people will ignore you, or make unfriendly remarks. Do an internet version of the flyer to be sent out via email networks.

Rapid Response Networks - When you want to mobilise your supporters for an emergency action or lobbying effort, a phone and email tree is an extremely useful and efficient tool. You can start a rapid response committee and select a coordinator who is responsible for initiating the network.

The coordinator organises the information to be given out and contacts the committee members, who each have a list of people to notify. Keep the message to two or three sentences; if phoning, ask each person to write it down as you give it. If you can't reach the next person on the tree, go on down the list until you do reach someone. The last person on the network should contact the first person to make sure the circle has been completed. Email is less personal but allows you to contact a larger number of people quickly.

4.3.2 Using the Media The impact of any event or action the group plans can be greatly increased by media attention. Larger events can reach an audience of hundreds or thousands if covered by a radio or TV station or newspaper. Media attention can put us in contact with people in our community working on similar issues.


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One guideline is to spend 10% of our organising time on attracting the press. We could form an on-going media committee or an ad hoc (short term) one to handle a specific event. A group often needs a well-spoken, informed spokesperson to make public statements and do interviews. Although this role can and should be shared, it would be best to use members who have been most active, who know the details of the issues thoroughly so that they can respond accurately to spontaneous questions, and who know the history of the group.

At our events, we would include a table marked "PRESS” and hand each reporter some printed information and get their names so that you can find out later if they ran a story.

4.3.3 Press Advisories and Releases

Press Advisories are notices to the press about an upcoming event and would go out six to ten days in advance. For weeklies, we would send our material two weeks in advance of the deadline always using the group's logo or letterhead and clearly listing the name and telephone number of our contact person on the upper right corner.

At the top of the page, "To: News Assignment Desk and Photo Desk (if there is a photo opportunity) will be written and beneath this, " Press Advisory " and "To Be Released for (date)," with a brief statement of the coming event, key people involved, purpose, and contact persons, with telephone numbers for further information.

This would be followed up with a phone call in 3 days - this will greatly increase our chances of getting coverage.

Press advisories are always followed by a Press Release just before the event. We would use the same layout as for the Advisory, but under our logo we would write "For Immediate Release" with the date of the event under this. The first sentence would describe the whole event. The body of the press release would be written in clear, simple language, with short sentences since reporters may use the exact text of our release, we will include our strongest facts or opinions. The usual length is one page. Anything about our event that ties in with local issues or relates to current news will attract attention.

We would mail our press release to the Managing Editor, City Editor or Assignment Editor for each media outlet on the list so that it will arrive three or four business days before our event. In the case of weeklies, we would send it a week in advance of the deadline.

We will call the media two days before the event, and for weeklies, two days before the deadline. We will also call each media outlet (except weeklies) on the day of the event in their first hour of business. If they don't know about the event, we would offer to fax them the press release, and make a note of those we expect to come.


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If possible, we would designate one person to follow up with reporters who seemed particularly receptive. It is important to make friends with the media and build good relationships over time.

4.3.4 Alternatives and Usage Patterns

Collaborative Ventures The consensus organiser also takes steps to pave the way for joint ventures between the community organisations and downtown interests. Such ventures may include both camaraderie building events, such as community clean-ups or community newsletters, and more substantive collaborations relating to significant community priorities. The organiser starts by identifying points of common interest and temperament. For example, the organiser may discover that community members are interested in, among other things, creating job opportunities for residents. The organiser may further discover that the owners of the factory (and major employer) is disagreeing with residents about many issues and also bemoaning about the lack of well-trained local job candidates. Using strategy and skill, the consensus organiser may turn this single point of overlapping interest into the basis for a community venture, such as a training programme that brings together residents and factory owners. The long-term significance of such a joint venture may be less in the benefits of the programme than in the opportunity it creates for community members to interact with their co-venturers. Such interactions may spark relationships built on genuine trust and respect. As a result of this, other issues regarding agenda conflicts may be overlooked, as the community may be able to employ strategies that rely in part on the existence of such relationships. As with the process of forming and maintaining a community organisation, the process of carrying out joint ventures and building relationships with people affiliated with downtown institutions demands a great deal from the community members involved. As participants in joint ventures, they must utilise knowledge and skills appropriate to the particular venture. They may be required to employ skills in management, accounting, real estate, banking, teaching or a variety of other disciplines. In some instances, there will be interested people who already have the necessary skills, and will use them on the community's behalf. In most instances, it will be necessary for some people to develop new skills, or enhance existing skills, through training and practice. While the consensus organiser can help develop some of the necessary skills and arrange for training programmes, it ultimately falls to the people involved to commit their time, talent and energy to skills-building, and to apply their skills with creativity and care in the appropriate settings.


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5. Strategy and Implementation Summary

5.1 SWOT Analysis

Analysis for the non-profit organisation has no investors or return on investment to consider, but it has to weigh factors such as fundraising, volunteer staff and goodwill that a commercial firm does not.

5.1.1 Strengths

NGOs have some strengths that commercial companies don’t. We are tax exempt and so can offer products at a discount since we don’t have the expense of taxes, and sometimes can offer products to buyers who pay no sales tax on the purchase. We can have a volunteer staff in many roles; artists, canvassers, legal practitioners. Volunteers can bring enormous savings to the business, which is particularly important to our type of non-profit organisation. The board of directors must by law be composed of volunteers, which is an advantage to our organisation.

5.1.2 Weaknesses

Most small non-profits barely cover their expenses with revenue and they can’t match the salaries of their for-profit competitors. We would typically be more focused on job satisfaction as compensation. A social entrepreneur will have no opportunity for return on investment and often can expect a minimal salary. The budget problem also may be evident in purchasing from suppliers. We are especially vulnerable to budgetary deficits.

5.1.3 Opportunities

Any grant that a charity may be eligible for is an opportunity. The grant may be from a government or private agency or group. There are many grants being offered even during a recession. Finding them and applying for them is a considerable task. We as non-profits can enjoy alliances with other organisations, commercial business or other NGOs. Cause marketing, for example, is a system in which a portion of the purchase price charged by a commercial business is donated to a specific charity. Ideally, it offers benefits to both organisations, as well as to the buyer, whose charitable giving is facilitated.

5.1.4 Threats

We are very vulnerable to economic crises. Unfortunately, charitable giving is one of the first cash outflows that consumers cut back on when money is tight. Public charities are held to a higher standard than for-profits. Since we depend on contributions, we need to avoid the perception of offensiveness. Even a small scandal can be damaging.


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5.2 Competitive Edge

With the launch of ‘I volunteered in Somaliland’, a volunteer programme using the power of diaspora Somalilanders to build their community through volunteering in 1-month, 6-month or 10-month programmes.

Typically, the strategy involves building permanent, self-sustaining organisations that will operate as vehicles for community involvement, leadership development and advocacy. Sometimes, these organisations must be built from scratch; in other cases, existing organisations could make modifications to their compositions, missions and approaches.

In order to form and sustain an effective organisation, residents must collaborate to formulate and carry out tasks and agendas, listen to other residents, articulate community concerns and engage in diplomacy. Somaliland Citizen founder Mr. Ahmed Mohamed experience has been that consensus organising works because of these extraordinary demands, not despite them.

Participants typically find that using their individual talents and skills on behalf of the community is a tremendously invigorating and inspiring experience. Commitment creates ownership. Ownership inspires commitment. Community organisations employing consensus tactics achieve tangible successes, and those successes breed confidence. Confidence in the organisation and its volunteer leaders inspires further community participation.

The community organisations formed in the consensus organising process are composed entirely of community members. "Downtown" interests, including the project's institutional partners, are not represented. The purpose of forming the organisations is to give community members the experience of responsibility and control, and to establish and implement a community agenda. While the community organisations are formed with the expectation that they will engage in cooperative ventures with "downtown" interests, it would not serve the community to allow the downtown interests to dominate or dilute the community organisation's actions.

On the other hand, the consensus organiser seeks to achieve extremely broad representation from within the community. Even if the community consists predominantly of members of a single race, residents of all races are invited to participate in the organisation. Even if the community consists predominantly of low-income people, residents of all income levels are invited to participate. The consensus organiser seeks participants from every group of people that lives or works within the community, or otherwise comes into contact with the community in a significant way.

While the logistical impossibility of seeking out every single person in any community makes some selectivity necessary, the consensus organiser's strategic goal is to recruit the most widely trusted individuals from every group of people affiliated with the community, and not to write off or exclude any group.


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For example, the consensus organiser recruits the merchants with the widest set of allegiances among the merchants doing business in the community, and the public housing tenants with the greatest credibility among public housing tenants. The result is a viable community organisation that has representation from, and credibility with, every segment of the community, composed of the individuals most likely to inspire commitment and enthusiasm by virtue of their involvement, with the greatest possible legitimacy in forming partnerships with "downtown" interests.

5.3 Marketing Strategy

Somaliland Citizens Organisation believes in the goal of leaving no community behind. The goal is to raise the visibility of programmes to assure that:

Referral sources will use the services Funding sources will support the programme People in the local community will volunteer to be mentor or leader

The marketing strategy will be to successfully seek this to be recourses to the local community. This will be accomplished by referral coordinator who will create and maintain a network of contracts that will serve as the referral sources for the programmes.

Brochures and local newspaper ads will be developed to sell the benefit of the organisation to both the potential referrers and participants. The referral coordinator will provide progress reports for the referring programme and community. The goal will be to build an effective marketing programme on the success of the mentoring relations.

A marketing effort will also be implemented to attract and retain quality mentors for the programme. The programme mentor recruiter or trainer will make presentations to Somaliland civic and social group, selling benefits of participating in the Somaliland Citizens Organisation. Reward activities will be planned for the mentors and these activities will be used to recruit mentors from the friends and associates of the current mentors.

The core of the marketing strategy will be the creation of the programme’s board of director who will be chartered with the responsibility of selling the benefits of the programme to the community.

5.4 Fundraising Strategy

Since money is so central to capitalism, people who work for progressive social change tend to have mixed feelings about it. As long as we live in a money-based economy, however, fundraising will be a necessary part of our organising.

Raising money is ideally just another aspect of building and maintaining our organisations, a regular part of our outreach and programme. Everyone involved with an organisation should be seen as a potential fundraiser. As long as we


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remember that the people who believe in our mission want to support it, including with their dollars, it is just a question of deciding who will ask for that support, when they will ask for it, and how.

With that in mind, remember that our programme should always come first. As noted elsewhere in this business plan, our group needs to have a clear mission statement and a list of goals. Based on your programme, the treasurer, or a budget committee, needs to project as accurately as possible the group's expenses for things like postage, telephone calls, photocopying, programme or event expenses, staff pay, and office rent. This will determine the amount of money to be raised.

Somaliland Citizen Organisation funding sources includes private donations, government and non-governmental contracts or grants, grants from private foundations, schools and business sponsorship. The programmes fundraising coordinator has established a number of contribution option that a support can select from.

1. Cash Donation: Individuals, schools or private organisations starting from £5. 2. Government Contract or Grants: Somaliland Government contract or grants

to help train local communities 3. Non-Governmental Organisation Contract or Grants: apply for contract and

grant from varied NGO organisations such as Immensity international, UNDP, Save the Children, etc.

4. Grants from Private foundations: Apply for grant from various private organisations

5. School & Business Sponsorships: Get Sponsorship for various institutions that might be of significant interest to the entity

5.4.1 Funding Forecast

Table 5.4.1: Funding Forecast

Funding Forecast FY 2013 FY 2014 FY 2015 Funding Cash Donation £2,496 £5,000 £6,500 Governmental Donation £5,007 £5,000 £5,000 Non-Governmental Donation £45,000 £65,000 £85,000 Private Foundations £5,004 £7,500 £8,500 Business Sponsors £2,496 £3,000 £4,500 Fundraising Campaign £996 £5,000 £8,000 Total Funding £60,999 £90,500 £117,500 Direct Cost of Funding FY 2013 FY 2014 FY 2015 Cost £0 £0 £0 Other £0 Subtotal Cost of Funding £0 £0 £0


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Chart 5.4.1a: Funding Monthly

May Jun

Jul

Aug

Sep Oct

Nov

Dec Jan

Feb

Mar Apr

Chart 5.4.1b: Funding by Year


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5.5 Milestones

Somaliland Citizens Organisation intends to complete all it operational milestone by the end of June 2012.

Table 5.5: Milestones

Milestones Milestone Start Date End Date Budget Founder Business Plan 31/05/2012 30/06/2012 Mr. Ahmed Mohamed Identify Initial Community Interest

31/05/2012 30/06/2012 Mr. Ahmed Mohamed

Register The CIC in Somaliland

31/05/2012 30/06/2012 Mr. Ahmed Mohamed

Establishing Relation with Community

31/05/2012 30/06/2012 Mr. Ahmed Mohamed

Contact & Network non-profit agencies

31/05/2012 30/06/2012 Mr. Ahmed Mohamed

Secure Public Funding Support

31/05/2012 30/06/2012 Mr. Ahmed Mohamed

Totals £0 Chart 5.5: Milestones


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6. Management Summary

The Somaliland Citizens Organisation initial management team consists of:

- The founder, Mr. Ahmed Mohamed, who would manage the organisation. He works from the grass roots with over 10 years’ experience working with various established community interest organisations in the United Kingdom.

- He will be assisted by two coordinators, Mr. Mohamed Islam and Mr. Kyse Usife. The founder anticipates a board of advisory volunteers will assist the management team in making decisions regarding the operation of the business.

6.1 Personnel Plan

It is anticipated that all members of staff will work for free in the first year. However, after the first year, the management team will be remunerated on a monthly basis. However, the volunteers will continue to help the organisation free of charge.

Table 6.1: Personnel

Personnel Plan FY 2013 FY 2014 FY 2015 Ahmed Mohamed £0 £12,000 £12,000 Mohammed Islam £0 £10,000 £10,000 Kyse Usife £0 £10,000 £10,000 Volunteers £0 £0 £0 Total People 0 0 0 Total Payroll £0 £32,000 £32,000

6.2 Exit Strategy

This would be the worst situation for the management committee members (as well as for everyone else who is part of the organisation), but unfortunately, closure does happen. Sometimes organisations are forced to close down because their funding has been cut, and no substitute money can be found. The following steps can be taken when faced with the option of closure.

1. Step 1 - Assess your options 2. Step 2 – Explore Survival 3. Step 3 – Explore Merging 4. Step 4 – Close


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6.2.1 Assess your options

It is essential that the management committee takes a long clear look at the current state of the organisation - perhaps with the help of an independent advisor - and identify the options for the short and long term. This assessment should include:

The impact on the client group of change (e.g. a reduction in services or transfer of activities) or closure;

Financial strengths and weaknesses, including assets (e.g. premises and equipment);

Internal capacity: morale, skills and knowledge of staff and volunteers; External opportunities and threats, including identification of possible merger or

transfer options where organisations provide similar services; Potential for rescue: by local authorities, government or major trusts; Legal and constitutional requirements: what does the governing document allow for

at closure in terms of the process to be followed and re-distribution of assets? Timetable required: for change and consolidation, merger or closure.

Ultimately it is up to the management committee to determine whether there are sufficient resources, and goodwill, to maintain core services, or whether the organisation must devise an exit strategy (i.e. plan for merger or closing down). If the decision is the latter, then is closure to be rapid, or delayed?

6.2.2 Sticking with Survival

If the decision is to try and survive, we would seriously consider the following:

Invest in realistic planning, implementation and review; Carefully construct a fundraising strategy; Neutralise any negative reputation, internally and externally; Prepare service users or local people to fight cuts or closure.

We would review the organisational structure and operations by asking: What lessons are there to be learnt from real life attempts by management committees at rescuing and restoring their organisations?

It is certainly very hard work; it consumes a lot of time and energy, and at times will feel frustrating and unrewarding. Other people will not necessarily appreciate your actions, and you may not be thanked - at least in the short term. But the remarkable resilience of so many people in the voluntary and community sector comes from a long experience of forging change, despite the odds.


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However, for an organisation in crisis to recover successfully, there are other essentials too. The process is dependent on the management committee members working together as a team. It is this cohesion that is at the heart of good governance, and which ultimately makes the difference when organisations face an uncertain fate.

6.2.3 Mergers

When independent survival is not an option, we may find that we are able to continue delivery of some services and activities by merging functions with another organisation. This approach is difficult, but most frequently considered by organisations who remain focused on the impact that closure would have on their beneficiaries. When determining whether this is an option, we would discuss and consider whether:

Another organisation is already providing similar services Another organisation is targeting similar beneficiaries The services or activities of our group potentially complements another organisation Other groups are active in a similar geographical area or whether we could merge

with another similar group to cover a larger geographical area.

Such consolidation of resources, services and expertise, can ensure that beneficiaries are better served as the long term future of certain activities and services becomes more secure. Such rationalisation of activities makes more effective use of existing resources and may be more favourably regarded by future funders.

6.2.4 Close

If the decision is to close, we would consider:

What our governing document says about dissolving the organisation (the how, what and when of winding an organisation depends on whether it is incorporated or unincorporated);

The extent of the assets of the organisation and the options for disposing them, e.g. are there legal requirements about who should benefit from the disposed assets?

The timetable required for seeing the process through. This includes stopping activities, dismissing staff, closing premises, paying bills, terminating contracts and, if appropriate, de-registering with the charity regulator;

The cost implications, i.e. having the finances to cover the cost of the process of winding up. You also need to consider the implications for management committee members in terms of personal liability if the organisation cannot meet its financial obligations;

Who is left, or best placed, to oversee the winding up and ultimate dissolution.


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7. Financial Plan

7.1 Start-up Funding

Table 7.1: Start-up Funding

Start-up Funding Start-up Expenses to Fund £800 Start-up Assets to Fund £1,000 Total Funding Required £1,800 Assets Non-cash Assets from Start-up £0 Cash Requirements from Start-up £1,000 Additional Cash Raised £94,200 Cash Balance on Starting Date £95,200 Total Assets £95,200 Liabilities and Capital Liabilities Current Borrowing £0 Long-term Liabilities £0 Accounts Payable (Outstanding Bills) £0 Other Current Liabilities (interest-free) £0 Total Liabilities £0 Capital Planned Investment Cash Donation £2,500 Governmental Donation £5,000 Non-Governmental Donation £80,000 Private Foundations £5,000 Business Sponsors £2,500 Fundraising Campaign £1,000 Additional Investment Requirement £0 Total Planned Investment £96,000 Loss at Start-up (Start-up Expenses) (£800) Total Capital £95,200 Total Capital and Liabilities £95,200 Total Funding £96,000


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7.2 Important Assumptions

It is assumed that the community would whole heartedly receive us. The next step in the consensus organising process is to conduct a preliminary assessment of community interests. The community piece of the assessment is rigorous and detailed and helps clarify any potentially damaging assumptions. Questions need to be asked: What are the specific strengths and weaknesses of existing community groups? Who are their real constituents? Which issues and interests unite the community, and which divide it? Is there a tradition of volunteerism and involvement in the community? Which individuals have the widest sets of allegiances within the community?

More socio-economic questions should be asked like: What relationships and linkages already exist among the local corporations, banks, hospitals, charitable foundations, service agencies and government agencies? Who has a vested interest in supporting or opposing the community's agenda? Is there a culture of involvement in the community, or a history of inactivity or hostility with respect to the community? The results of this assessment are subjected to careful analysis, and establish the basis for our strategy.

7.3 Break-even Analysis

Table 7.3: Break-even Analysis

Break-even Analysis Monthly Revenue Break-even £1,069 Assumptions: Average Per Cent Variable Cost 0% Estimated Monthly Fixed Cost £1,069


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Chart 7.3: Break-even Analysis

7.4 Projected Surplus or Deficit

Table 7.4: Surplus and Deficit

Surplus and Deficit FY 2013 FY 2014 FY 2015 Funding £60,999 £90,500 £117,500 Direct Cost £0 £0 £0 Other Costs of Funding £997 £1,000 £1,000 Total Direct Cost £997 £1,000 £1,000 Gross Surplus £60,002 £89,500 £116,500 Gross Surplus % 98.37% 98.90% 99.15% Expenses Payroll £0 £32,000 £32,000 Marketing/Promotion £252 £500 £500 Depreciation £0 £0 £0 Rent £5,004 £5,000 £5,000 Utilities £276 £275 £275 Insurance £996 £100 £100 Payroll Taxes £4,800 £4,800 £4,800 Other £1,500 £3,000 £3,000


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Total Operating Expenses £12,828 £45,675 £45,675 Surplus Before Interest and Taxes £47,174 £43,825 £70,825 EBITDA £47,174 £43,825 £70,825 Interest Expense £0 £0 £0 Taxes Incurred £0 £0 £0 Net Surplus £47,174 £43,825 £70,825 Net Surplus/Funding 77.34% 48.43% 60.28%

Chart 7.4a: Surplus Monthly


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Chart 7.4b: Surplus Yearly

Chart 7.4c: Gross Surplus Monthly


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Chart 7.4d: Gross Surplus Yearly


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7.5 Projected Cash Flow

Table 7.5: Cash Flow

Pro Forma Cash Flow FY 2013 FY 2014 FY 2015 Cash Received Cash from Operations Cash Funding £60,999 £90,500 £117,500 Subtotal Cash from Operations £60,999 £90,500 £117,500 Additional Cash Received Sales Tax, VAT, HST/GST Received £0 £0 £0 New Current Borrowing £0 £0 £0 New Other Liabilities (interest-free) £0 £0 £0 New Long-term Liabilities £0 £0 £0 Sales of Other Current Assets £0 £0 £0 Sales of Long-term Assets £0 £0 £0 New Investment Received £0 £0 £0 Subtotal Cash Received £60,999 £90,500 £117,500 Expenditures FY 2013 FY 2014 FY 2015 Expenditures from Operations Cash Spending £0 £32,000 £32,000 Bill Payments £12,711 £14,582 £14,675 Subtotal Spent on Operations £12,711 £46,582 £46,675 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out £0 £0 £0 Principal Repayment of Current Borrowing

£0 £0 £0

Other Liabilities Principal Repayment £0 £0 £0 Long-term Liabilities Principal Repayment

£0 £0 £0

Purchase Other Current Assets £0 £0 £0 Purchase Long-term Assets £0 £0 £0 Dividends £0 £0 £0 Subtotal Cash Spent £12,711 £46,582 £46,675 Net Cash Flow £48,288 £43,918 £70,825 Cash Balance £143,488 £187,405 £258,230


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Chart 7.5: Cash flow

May Jun

Jul

Aug

Sep Oct

Nov

Dec Jan

Feb

Mar Apr

7.6 Projected Balance Sheet

Table 7.6: Balance Sheet

Pro Forma Balance Sheet FY 2013 FY 2014 FY 2015 Assets Current Assets Cash £143,488 £187,405 £258,230 Other Current Assets £0 £0 £0 Total Current Assets £143,488 £187,405 £258,230 Long-term Assets Long-term Assets £0 £0 £0 Accumulated Depreciation £0 £0 £0 Total Long-term Assets £0 £0 £0 Total Assets £143,488 £187,405 £258,230 Liabilities and Capital FY 2013 FY 2014 FY 2015 Current Liabilities Accounts Payable £1,114 £1,206 £1,206 Current Borrowing £0 £0 £0 Other Current Liabilities £0 £0 £0 Subtotal Current Liabilities £1,114 £1,206 £1,206 Long-term Liabilities £0 £0 £0 Total Liabilities £1,114 £1,206 £1,206 Paid-in Capital £96,000 £96,000 £96,000 Accumulated Surplus/Deficit (£800) £46,374 £90,199 Surplus/Deficit £47,174 £43,825 £70,825 Total Capital £142,374 £186,199 £257,024 Total Liabilities and Capital £143,488 £187,405 £258,230 Net Worth £142,374 £186,199 £257,024


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7.7 Standard Ratios

Table 7.7: Ratios

Ratio Analysis FY 2013 FY 2014 FY 2015 Industry Profile Funding Growth 0.00% 48.36% 29.83% 0.00% Percent of Total Assets Other Current Assets 0.00% 0.00% 0.00% 100.00% Total Current Assets 100.00% 100.00% 100.00% 100.00% Long-term Assets 0.00% 0.00% 0.00% 0.00% Total Assets 100.00% 100.00% 100.00% 100.00% Current Liabilities 0.78% 0.64% 0.47% 0.00% Long-term Liabilities 0.00% 0.00% 0.00% 0.00% Total Liabilities 0.78% 0.64% 0.47% 0.00% Net Worth 99.22% 99.36% 99.53% 100.00% Percent of Funding Funding 100.00% 100.00% 100.00% 100.00% Gross Surplus 98.37% 98.90% 99.15% 0.00% Selling, General & Administrative Expenses 21.03% 50.47% 38.87% 0.00% Advertising Expenses 0.41% 0.55% 0.43% 0.00% Surplus Before Interest and Taxes 77.34% 48.43% 60.28% 0.00% Main Ratios Current 128.85 155.37 214.09 0.00 Quick 128.85 155.37 214.09 0.00 Total Debt to Total Assets 0.78% 0.64% 0.47% 0.00% Pre-tax Return on Net Worth 33.13% 23.54% 27.56% 0.00% Pre-tax Return on Assets 32.88% 23.39% 27.43% 0.00% Additional Ratios FY 2013 FY 2014 FY 2015 Net Surplus Margin 77.34% 48.43% 60.28% n.a Return on Equity 33.13% 23.54% 27.56% n.a Activity Ratios Accounts Payable Turnover 12.41 12.17 12.17 n.a Payment Days 27 29 30 n.a Total Asset Turnover 0.43 0.48 0.46 n.a Debt Ratios Debt to Net Worth 0.01 0.01 0.00 n.a Current Liab. to Liab. 1.00 1.00 1.00 n.a Liquidity Ratios Net Working Capital £142,374 £186,199 £257,024 n.a Interest Coverage 0.00 0.00 0.00 n.a Additional Ratios Assets to Funding 2.35 2.07 2.20 n.a Current Debt/Total Assets 1% 1% 0% n.a Acid Test 128.85 155.37 214.09 n.a Funding/Net Worth 0.43 0.49 0.46 n.a Dividend Payout 0.00 0.00 0.00 n.a

Appendix

Table 1: Funding Forecast

Funding Forecast May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Funding Cash Donation £208 £208 £208 £208 £208 £208 £208 £208 £208 £208 £208 £208 Governmental Donation £420 £417 £417 £417 £417 £417 £417 £417 £417 £417 £417 £417 Non-Governmental Donation £3,750 £3,750 £3,750 £3,750 £3,750 £3,750 £3,750 £3,750 £3,750 £3,750 £3,750 £3,750 Private Foundations £417 £417 £417 £417 £417 £417 £417 £417 £417 £417 £417 £417 Business Sponsors £208 £208 £208 £208 £208 £208 £208 £208 £208 £208 £208 £208 Fundraising Campaign £83 £83 £83 £83 £83 £83 £83 £83 £83 £83 £83 £83 Total Funding £5,086 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 Direct Cost of Funding May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Cost £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Other £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Subtotal Cost of Funding £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

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Appendix

Table 2: Personnel

Personnel Plan May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Ahmed Mohamed 1 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Mohammed Islam 1 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Kyse Usife 1 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Volunteers 10 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Total People 13 0 0 0 0 0 0 0 0 0 0 0 0 Total Payroll £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

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Appendix

Table 3: Surplus and Deficit

Surplus and Deficit May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Funding £5,086 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 Direct Cost £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Other Costs of Funding £84 £83 £83 £83 £83 £83 £83 £83 £83 £83 £83 £83 Total Direct Cost £84 £83 £83 £83 £83 £83 £83 £83 £83 £83 £83 £83 Gross Surplus £5,002 £5,000 £5,000 £5,000 £5,000 £5,000 £5,000 £5,000 £5,000 £5,000 £5,000 £5,000 Gross Surplus % 98.35% 98.37% 98.37% 98.37% 98.37% 98.37% 98.37% 98.37% 98.37% 98.37% 98.37% 98.37% Expenses Payroll £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Marketing/Promotion £21 £21 £21 £21 £21 £21 £21 £21 £21 £21 £21 £21 Depreciation £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Rent £417 £417 £417 £417 £417 £417 £417 £417 £417 £417 £417 £417 Utilities £23 £23 £23 £23 £23 £23 £23 £23 £23 £23 £23 £23 Insurance £83 £83 £83 £83 £83 £83 £83 £83 £83 £83 £83 £83 Payroll Taxes 15% £400 £400 £400 £400 £400 £400 £400 £400 £400 £400 £400 £400 Other £125 £125 £125 £125 £125 £125 £125 £125 £125 £125 £125 £125 Total Operating Expenses £1,069 £1,069 £1,069 £1,069 £1,069 £1,069 £1,069 £1,069 £1,069 £1,069 £1,069 £1,069 Surplus Before Interest and Taxes

£3,933 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931

EBITDA £3,933 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 Interest Expense £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Taxes Incurred £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Net Surplus £3,933 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 Net Surplus/Funding 77.33% 77.34% 77.34% 77.34% 77.34% 77.34% 77.34% 77.34% 77.34% 77.34% 77.34% 77.34%

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Appendix

Table 4: Cash Flow

Pro Forma Cash Flow May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Cash Received Cash from Operations Cash Funding £5,086 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 Subtotal Cash from Operations £5,086 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 Additional Cash Received Sales Tax, VAT, HST/GST Received

0.00% £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

New Current Borrowing £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 New Other Liabilities (interest-free)

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

New Long-term Liabilities £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Sales of Other Current Assets £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Sales of Long-term Assets £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 New Investment Received £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Subtotal Cash Received £5,086 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 £5,083 Expenditures May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Expenditures from Operations Cash Spending £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Bill Payments £38 £1,153 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 Subtotal Spent on Operations £38 £1,153 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Principal Repayment of Current Borrowing

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Other Liabilities Principal Repayment

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Long-term Liabilities Principal Repayment

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Purchase Other Current Assets £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Purchase Long-term Assets £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Dividends £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Subtotal Cash Spent £38 £1,153 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 £1,152 Net Cash Flow £5,048 £3,930 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 £3,931 Cash Balance £100,248 £104,178 £108,109 £112,040 £115,971 £119,902 £123,833 £127,764 £131,695 £135,626 £139,557 £143,488

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Appendix

Table 5: Balance Sheet

Pro Forma Balance Sheet

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Assets Starting

Balances

Current Assets Cash £95,200 £100,248 £104,178 £108,109 £112,040 £115,971 £119,902 £123,833 £127,764 £131,695 £135,626 £139,557 £143,488 Other Current Assets £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Total Current Assets £95,200 £100,248 £104,178 £108,109 £112,040 £115,971 £119,902 £123,833 £127,764 £131,695 £135,626 £139,557 £143,488 Long-term Assets Long-term Assets £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Accumulated Depreciation

£0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Total Long-term Assets £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Total Assets £95,200 £100,248 £104,178 £108,109 £112,040 £115,971 £119,902 £123,833 £127,764 £131,695 £135,626 £139,557 £143,488 Liabilities and Capital May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Current Liabilities Accounts Payable £0 £1,115 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 Current Borrowing £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Other Current Liabilities £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Subtotal Current Liabilities

£0 £1,115 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114

Long-term Liabilities £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 £0 Total Liabilities £0 £1,115 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 £1,114 Paid-in Capital £96,000 £96,000 £96,000 £96,000 £96,000 £96,000 £96,000 £96,000 £96,000 £96,000 £96,000 £96,000 £96,000 Accumulated Surplus/Deficit

(£800) (£800) (£800) (£800) (£800) (£800) (£800) (£800) (£800) (£800) (£800) (£800) (£800)

Surplus/Deficit £0 £3,933 £7,864 £11,795 £15,726 £19,657 £23,588 £27,519 £31,450 £35,381 £39,312 £43,243 £47,174 Total Capital £95,200 £99,133 £103,064 £106,995 £110,926 £114,857 £118,788 £122,719 £126,650 £130,581 £134,512 £138,443 £142,374 Total Liabilities and Capital

£95,200 £100,248 £104,178 £108,109 £112,040 £115,971 £119,902 £123,833 £127,764 £131,695 £135,626 £139,557 £143,488

Net Worth £95,200 £99,133 £103,064 £106,995 £110,926 £114,857 £118,788 £122,719 £126,650 £130,581 £134,512 £138,443 £142,374

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