GreenScape Landscapes Business Plan — Funding Requirement and Use of Funds
The funding requirement and precisely where each rand is applied across equipment, working capital and growth.
Section 20 of 25
Funding Requirement and Use of Funds
Jump to section
- 1. Executive Summary
- 2. Investment Thesis
- 3. Company and Business Overview
- 4. Problem, Customer Need and Value Proposition
- 5. Products and Services
- 6. Industry Analysis
- 7. Market Analysis
- 8. Customer Analysis
- 9. Competitive Landscape
- 10. Business Model
- 11. Go-to-Market Strategy
- 12. Operating Model
- 13. Management and Organisation
- 14. Strategic Plan
- 15. SWOT Analysis
- 16. Risk Analysis
- 17. ESG and Sustainability
- 18. Implementation Roadmap
- 19. Financial Plan
- 20. Funding Requirement and Use of Funds
- 21. Investment Case and Returns
- 22. Sensitivity and Scenario Analysis
- 23. KPIs and Management Dashboard
- 24. Conclusion
- 25. Appendices
A R6.5m raise funds the asset base and the ramp to profitability with a prudent contingency; roughly half is fixed assets and the balance carries the business through the Year-1 investment loss.
20.1 How much capital the business requires
The business requires total capital of R6,500k. The requirement is determined by three needs: the initial asset base (fleet, equipment, workshop, office and branding), the working capital to fund the Year-1 operating loss and the receivables/payroll cycle during the ramp, and a contingency buffer. A separate R1.5m working-capital facility is arranged to smooth timing; the model draws only a nominal amount at peak.
Table 40. Use of funds, ZAR ’000
|
Use |
Amount |
Category |
|---|---|---|
|
Vehicles & trailers |
1,625 |
Fixed assets |
|
Lawn & landscaping equipment |
450 |
Fixed assets |
|
Irrigation equipment |
120 |
Fixed assets |
|
Workshop equipment |
150 |
Fixed assets |
|
Office & IT equipment |
180 |
Fixed assets |
|
Branding (vehicles, uniforms, signage) |
160 |
Fixed assets |
|
Pre-operating costs |
220 |
Start-up |
|
Working capital |
3,220 |
Working capital |
|
Contingency |
375 |
Buffer |
|
Total uses |
6,500 |
20.2 Funding structure
The recommended structure balances cost of capital, risk and serviceability. Equity absorbs the early-stage risk and the Year-1 loss; asset finance matches long-life vehicles and equipment to secured, self-amortising debt; and a modest term loan — with a 24-month principal moratorium — provides additional runway without over-burdening early cash flow. The moratorium is a deliberate response to the tight debt-service cover of the ramp years.
Table 41. Sources of funds and terms
|
Source |
Amount |
Terms |
|---|---|---|
|
Equity |
R3,000 |
Founder R1.0m + investor R2.0m for 40% |
|
Asset finance |
R2,000 |
5-year amortising, secured on fleet & equipment, ~13% |
|
Term loan |
R1,500 |
5-year, 24-month principal moratorium, ~14% |
|
Working-capital facility |
R1,500 (limit) |
Revolving; ~14.5%; nominal peak draw in the model |
|
Total committed capital |
R6,500 |
Excludes the undrawn WC facility headroom |