1. We will start by just doing
some basic cash-flow
exercises so that I can
assess what you know, or
have remembered
Year 10 Business Studies
Mr Ahern
2.
All of the money that would come into the business is known
as inflow The TAP
All of the money that would go out of the business is known
as outflow The Drain
Set out your work in the table on the next slide.
3.
We will do a cash flow forecast for 6 months from January to
June. use the following table to store all of the inflow and
outflow that we have seen so far.
(£)
Total Receipts
Total Payments
Cash flow
Opening Bank
Balance
Closing bank
balance
Jan Feb
Mar
Apr May
June
4.
Key Term: Opening balance is the amount of cash in
the business at the start of each month (Water in
the bath)
(£)
Total Receipts
Total Payments
Cash flow
Opening Bank
Balance
Closing bank
balance
Jan Feb
Mar
Apr May
June
5.
Key Term: Closing Balance becomes the ???????
balance at the start of the next month (Water left
over in the bath)
(£)
Total Receipts
Total Payments
Cash flow
Opening Bank
Balance
Closing bank
balance
Jan Feb
Mar
Apr May
June
6.
Key Term: Closing balance is the amount of cash in the business at the
end of each month. (water left in the bath when u get out)
The closing balance is calculated by adding the net cash flow onto the
opening balance
Closing balance = opening balance + cash flow
(£)
Jan Feb
Mar
Apr May
June
Total Receipts
Total Payments
Cash flow
Opening Bank
Balance
Closing bank
balance
NOTE THAT THE OPENING BALANCE IS THE SAME AS THE CLOSING BALANCE OF THE PREVIOUS MONTH
7.
As a class we will complete this together.
(£)
Jan Feb Mar
Apr
May
June
Receipts
800
1000
700
700
500
400
Payments
600
700
800
800
700
700
Net Cash flow
Opening
Balance
0
Closing
Balance
NOTE THAT THE OPENING BALANCE IS THE SAME AS THE CLOSING
BALANCE OF THE PREVIOUS MONTH
8.
Complete the cash flow forecast for Shelly Isfit
(£)
Jan Feb Mar
Apr
May
June
Receipts
800
1000
700
700
500
400
Payments
600
700
800
800
700
700
Net Cash flow 200
300
-100
-100
-200
-300
Opening
Balance
0
200
500
400
300
100
Closing
Balance
200
500
400
300
100
-200
NOTE THAT THE OPENING BALANCE IS THE SAME AS THE CLOSING
BALANCE OF THE PREVIOUS MONTH
10. To know what a business plan is
Know the content of a business plan
Know who a business plan is for
11. If you don’t plan where you are going………
How do you know if you have got there?
12. A document that
describes a business
It should include aims
and objectives
The market which the
business is in
The businesses
financial forecast
13. To get external
finance or funding.
To be used within
the business as a
means of measuring
actual performance
to predicted figures.
15. A plan should last 2 years
After that time new targets need to be set.
Why?
Plans can be changed
Not the entire plan but just parts of it may be
changed for different audiences
16. The business plan should give details on how the
business will be developed.
(If you don’t know where you are going, how do
you know if you have got there).
17. When this will happen
And who is going to be responsible
18.
19. Clearly how money will be managed
Cash flow forecast
Money needed to start up
Where the money will come from
20. Banks
External investors including
venture capitalists
Potential buyers of the business
Potential partners
21. When the business was established and any
progress made, or when it intends to start
Type of business / market sector
Relevant history
Legal structure Sole Trader, Partnership,
franchise, LTD etc…
22. What makes the
product / service
different
What benefits they
offer
Clear indication of the
type of customer
23.
How the business
intends on developing
products or services
(possibly the range)
Patents, trademark,
copyright, designs
24. Size
Current issues
The target customer base
Competition
Future changes likely to effect the market
place (3D TV)
25. How will the business position its products /
services in the marketplace
How the business will attract new customers?
Pricing policy, discounts for bulk purchasing
etc..
How will the business promote its products
and services
26. How will products / services reach customers,
Internet
Face-to-face
Wholesale
Retailers etc..
how will they be distributed?
