Financial Planning and Cashflow Management

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Financial Planning and
Cashflow Management

by Shakar Elahi BSc FCCA


Case Study -
Case Study -
Thames Digital Reprographics
Ganapati Restaurant

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©Shakar Elahi 2008. All rights reserved. The moral right of the author is asserted.
eBook edited and produced by Julian Jackson
This eBook may be freely distributed with acknowledgement but may not be changed
in any way.
Elan & Co is a trading style of Elan & Co LLP.
Tel 020 7403 1500


How this Free Guide will benefit your business
What is financial planning and cashflow management?
About Shakar Elahi
What is Financial Planning?
Case Study 1 - Ryan Harms Archimet Architectural Metalwork 9
Financial Planning and Budgets: improving the Performance Measurement Process 11
Case Study 2 - Claire Fisher Ganapati Restaurant 13
Cash Flow Forecasts 18
A Cash Flow Model 19
Case Study 3 - Tony Ferrell VauxFord 25
Case Study 4 - Thames Digital Reprographics Ltd 28
Conclusion 30
Useful Common Financial Terms 31

Case Study -
Case Study - Ryan Harms’
Tony Ferrell’s Garage
Metalworking business
Tel 020 7403 1500

You have decided to go on a long car journey from London to Glasgow. What would
you do to get ready for this drive? Most people would look at a map or put the
details in their satnav. Top up with petrol and check the oil and water. Pack some
snacks. If there are going to be children onboard, then you would take things to
amuse them.
You might listen to the radio for warnings about weather and tailbacks.
Then you probably would make a rough schedule in your head so you would know
when and where to stop for breaks.
Few people would just get in the car and head for the M1, hoping that the signposts
would take them to their destination.
They are the sort of people you might see lost and asking directions. Or fuming
because they are late. Or broken down on the hard shoulder.
If this is the type of planning you would do when travelling, why do so many
businesses and individuals fail to plan, and in effect plan to fail in the crucial area of
their finances?

How this Free Guide will benefit your business

Chartered Certified accountant Shakar Elahi will take you through the strategy of
financial planning and cashflow management. This eBook will clarify the the goals
for your business, and give you sound advice on how to proceed. Four case studies of
disparate businesses show the importance of proper business accounting and financing
and how it helps businesses succeed.
Navigating this eBook
You can simply scroll through this Adobe Acrobat PDF format eBook, but you can
also open the Bookmarks tab to jump to a particular section. In addition you can use
Alt+left or right facing arrow keys (Ctrl+left or right facing arrow in some versions of
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Adobe Acrobat or Acrobat Reader) or Apple+ arrows on a Mac, to jump forward and
back between where you have just been. For example if you click on the interactive
Contents table, to jump to one of the Case Studies, you can then jump straight back
to the Contents by clicking Alt+left-facing arrow keys, which is much easier than
scrolling back. Inputting a page number into the page number box at the bottom of
the page and clicking Enter or Return will take you directly to that page.

What is financial planning and cashflow management?

Financial planning is a process by which you assess your financial situation and your
sources of finance, determine your objectives, and then formulate financial strategies
to achieve those objectives.
But all the planning in the world is useless if your business does not have the cash on
hand to implement these plans – cashflow management is essential to ensure that you
are paid in full and on time, otherwise your business will quickly find itself in serious
financial trouble.
Tel 020 7403 1500

About Shakar Elahi

Shakar Elahi BSc FCCA - Founder and Principal
Partner Elan & Co

Shakar is a Chartered Certified Accountant and has over
22 years experience working in the accountancy
profession and industry.

He was educated at the University of Kent and then worked for IMG, the sports,
entertainment and media company founded by sports entrepreneurial legend Mark
McCormack. He managed the financial interests of top flight sports stars including
Vijay Singh, Virginia Wade and Colin Montgomery.
Shakar then moved on to become a management consultant at Deloittes, specialising
in business solutions.
Striking out on his own, he established Elan & Co in 1997. He has developed the
business and technical skills essential for growing SME’s, making him an invaluable
Business Advisor. He is also a qualified Mortgage Advisor and specialist in Property
and Business Tax. At Elan & Co he is head of a team of highly-qualified business
professionals who can advise on any aspect of business finance and accounting
including Bernadette Teuma CA, Jamal Rahman BSc (Hons), MBA, MBCS, and
Samera Saleem, who between them have over 60 years of experience in the profession.

Elan & Co
Tel: 020 7403 1500
Chartered Certified Accountants

Unit 3 Cedar Court
Email: [email protected]
1 Royal Oak Yard

London SE1 3GA
Tel 020 7403 1500

What is Financial Planning?

Financial planning can be either business, or personal:
1 – Business Financial Planning

A process in which your business

assesses your business' financial situation,
determines its objectives and
formulates financial strategies on how to achieve those objectives

2 – Personal Financial Planning

A process in which an individual sets long-term financial goals through

tax planning,
asset allocation,
risk management,
retirement planning and
estate planning.
Tel 020 7403 1500

Why is it necessary to Financial Plan?

The future is uncertain
Business can be complex
Risks and rewards ebb and flow
Management is improved by planning
Increases chances of success

When do you need to Financial Plan?

financial planning should become a continuous activity where the plan is
reviewed regularly and performance measured against specific devised targets.

How to start your Financial Planning

Begin by assessing your business by looking at your past, present and future.

Core activities – what type of business are you in?
How do you deliver those activities profitably?
What are your Assets and Liabilities?
What is your Income and Expenditure?
Will you need funds to start or expand your business venture?
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Case Study 1 - Ryan Harms Archimet Architectural Metalwork
Managing cashflow is critically important

Entering Ryan Harms’ workshop is like entering a dungeon – strange metal
shapes loom out of the gloom, harsh machinery screeches and sparks fly.
The you hear laughter and joking. A ray of light shines out from his upper floor
eyrie and Ryan comes down to explain his business.
He creates custom-made gates, balustrades and staircases in metal. His
products are specially designed and hand-made by his expert team. They
have spent the last nine months on a huge job completely refurbishing a
house in St Johns Wood. “We put in four staircases, two driveway gates,
front door, and many other hand-forged details, all in mirror polished stainless
steel for a property developer.”
After training in 3D crafts, and having sculpture exhibitions, Ryan worked his
way up in a traditional blacksmiths, from “Tea Boy to Master Craftsman”.
Leaving that company to travel on his honeymoon, Ryan returned to find a job
with Archimet. After only being there two months the owner offered to sell the
business to him. Ryan Harms says, “I thought well: why not? That’s a good
opportunity now, and started off, built the business.”
The business aspect has been a steep learning curve. Ryan is a hands-on
person and does most of the book-keeping himself, relying on Shakar Elahi
Tel 020 7403 1500

and the team at Elan & co for advice. Ryan admits that it has not been easy,
and at one particular time the finances of the business became strained
because of poor financial planning, it was very stressful, but with the
intervention of Shakar Elahi, the business managed its cashflow better and is
now moving to new premises in Kent, which is a huge barn set on an idyllic
farm 15 minutes from his home. It even has space for his retired uncle to
devote himself to his hobby of making rocking horses. Creativity seems to be
a family trait.
Ryan is confident about the future – with his Kent workshop manufacturing the
products and his London team fitting them, his client-base is secure, and he is
returning to what started him off in his career: metal sculpture. “One thing I
found so interesting with metal was that it was an object that was always
looked upon as tough and hard, but one thing I got enjoyment out of when you
were forging it was that you could manipulate it to any shape you wanted. In
this job you can be confined to certain extent if you are making a staircase,
but with sculpture you are a lot freer and you can be a lot more creative.”
Tel: 077899 51043
Email: [email protected]
Tel 020 7403 1500

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