MANAGING FINANCIAL RESOURCES

Managing Financial Resources and Decision



Managing Financial Resources and Decision

Introduction

In this competitive world of increased technology we thought of utilizing our resources for the betterment of our people and our country. By providing this unique service we thought of making our customers life easier and simpler. Our objective is basically to provide a fully secured parking area.

The Business

The name of our project is “CAR-IN PARKING PLAZA”. The place at which we are going to launch these services will be located at Westminster, London. The legal status of the business is registered partnership between the two partners. We have selected a project of the parking area. The 12-storey plaza - with eight floors for parking and two floors for shops and two floors for offices - will be constructed at a cost of £. 654 million on a 35,654 square-feet plot. The plaza has parking space for 700 vehicles and 500 motorcycles, besides accommodation for 160 shops and 118 offices. The place we will select for plaza at Westminster. The advantages for selecting a place at Westminster are; there are lots of problems of parking at Westminster so we can easily attract people to use our parking area and it is a commercial area so we can easily attract people to use our shops and offices. In this parking area people will find a much cheaper alternative as compared to the other car parking areas.

The initial costs

The initial cost of the project will include the cost of fixed and current assets. This will be generated through equity of the partners and loan from the bank. The project concept presented in this business plan is a reflection of the most promising from our point of view of market entry strategy for a new parking lot.

Building parking lot will be built on leased land in a residential area with a high concentration of residential real estate. Construction of car parks provided by technology-fabricated metal prefabricated panels, which does not require the mandatory supply of communications, and working on the principle of recycling water.

Cost of the Project

COST OF PROJECT

 

Land 35,654-square-foot

400

 

Building

250

 

Office Equipment + Furniture

1.5

 

Generator

2

 

TOTAL

654

 

CAPITAL

 

 

 

Ratio

Millions

Equity

60%

392

Debt @14%

40%

261

Total

100%

654

Sources of finance

Successful business not only makes a profit to its owners, but they require monetary investments to address some of the strategic objectives of the business, achieving market objectives and long-term plans.

Sources of business financing are divided into:

External sources

Internal sources

Internal sources of funding

These funds represent the profits earned from the business, ie, internal sources - this is the money available to the business. Profit in business depends on its cost of production, the price of it, from the turnover. At the same time for business financing cannot let all the profits - a part of it will have to pay workers in wages, the government in taxes, may send to repay bank loans. Only the remaining funds can be considered the actual profit of the company, which can be spent on financing the business, its development and payment ...