This document provides an overview of key business finance concepts including inventory, overheads, and capital. It defines inventory as anything contributing to direct costs for products, services, or composite offerings. It discusses managing inventory levels and price variations. Overheads are defined as indirect costs like rent, marketing, or consulting. The document outlines optimizing overheads through outsourcing or resource sharing. Capital is money invested in a business as working capital or asset capital, and the goal is recovering capital investments through acceptable returns.

1. your
money
01
inventory
recognising and managing the
items contributing to direct costs
03
capital
understanding and managing the
types of capital in business
02
overheads
understanding and optimizing your
overheads to ensure sustainability

2. inventory

3. understanding
inventory
direct cost
anything and everything
that contributes to your
direct costs
page
03
anything and everything
that can be monetized

4. for
services
services
monetising their skills to
fulfil client requirement
• man hours
• bought outs

5. for
products
products
providing goods to satisfy
market demand
• goods
• material
• storage
• man hours
• transport

6. for
composite
composite
providing goods and
related services
• man hours
• goods
• storage
• transport

7. managing
inventory
permissible idle time
idling
LIFO - FIFO
movement
price variations
value
purchase-sale-replenishment
cycle

8. overheads

9. understanding
overheads
indirect cost
anything and everything that
support the delivery of your
product or service
operational breakeven
being cash positive by covering
direct and indirect costs

10. examples of
overheads
all your outreach activities
promotions
accounting and legal filings
compliances
office rent or subscriptions
rent
consulting or research
development
disposal or treatment
waste

11. optimizing
overheads
selection and utilization
utilization
subscriptions and resources
sharing
third party experts or freelancers
outsourcing

12. capital

13. understanding
capital
investment
money that is locked in to the
business in various forms of
resources
breakeven
time period within which you
recover your capital with
acceptable returns

14. capital
types
capital investments towards
maintaining inventory in form
of material or finished goods
contributing to short term
value creation
working capital
capital investments towards
infrastructure and forms of
assets contributing to long
term value creation
asset capital

15. optimizing
capital
recognize trends of dead
stock & mitigate periodically
dead stock
consider lifecycle costs of
assets rather than face value
lifecycle
only assets that contribute to
your core value proposition
limit
optimize inventory levels
with monthly projections
inventory

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