Joel Humphrey of Freelandt Caldwell Reilly LLP discusses how to create a sales forecast, developing your budgets and examples of cash flow projections.
Financial Planning - Joel Humphrey (Freelandt Caldwell Reilly LLP)NORCAT
Joel Humphrey, partner at Freelandt Caldwell Reilly LLP returns to ENT101 to discuss financing for start-ups.
Joel works with many of the firm’s start-up clients to review business plans, develop financial forecasts, map out cash flow strategies and arrange financing requirements. With Joel’s extensive experience with young companies, this lecture will be extremely informative for all levels.
Watch the presentation at http://www.norcat.org/ent-101/season-3-lectures/
This document provides an overview of an accounting training workshop. It includes:
1) Objectives of helping participants understand key financial concepts and statements and make better business decisions.
2) An outline of course contents covering accounting principles, financial statement analysis, and key metrics.
3) Examples of accounting concepts discussed like the accounting equation, revenue and expense recognition, and the purpose of financial statements.
The document provides an overview of finance basics for managers. It covers key topics like the basics of financial management, understanding financial statements, financial analysis and decision making, and projecting financial scenarios for project management. Some key points include defining accounting and bookkeeping, explaining the purpose and limitations of financial statements like the balance sheet, income statement, and cash flow statement, discussing various financial ratios for analyzing liquidity, profitability, solvency, financial stability, and management efficiency, and introducing techniques for projecting costs and revenues of potential projects through cost benefit analysis, net present value, and return on investment.
Bba 2204 fin mgt week 4 cashflow & financial planningStephen Ong
This document provides an overview of cash flow and financial planning. It discusses key concepts like depreciation, statements of cash flows, operating cash flow, free cash flow, and financial planning processes. The learning goals are to understand tax depreciation, statements of cash flows, and financial planning, including long-term strategic plans and short-term operating plans like cash budgets and pro forma financial statements. Examples are provided to illustrate concepts like depreciation calculations and developing statements of cash flows. Ethics examples consider appropriate CEO compensation and ways accountants could portray favorable earnings.
The document provides information about finance director services for entrepreneurial companies. It discusses understanding a company's current financial position, key business drivers, cash flow needs, and how to prepare basic financial statements like the balance sheet, profit and loss statement, and cash flow statement. It also covers topics like break even analysis, financial reporting, taxation, and financial modeling and forecasting. The document aims to help entrepreneurs and business owners better understand their company's financials.
Accounting and Valuation Considerations in Business TransactionsSkoda Minotti
Determining the value of a privately-held entity is no easy task. More so, when you are buying or selling a business, the entire transaction process can be overwhelming and confusing. There are many financial and non-financial factors to consider in the transaction process. The implications of an improperly executed transaction can not only make a financial impact, but also put you at risk of key compliance matters, whether accounting, tax, or regulatory matters. This presentation will review the key accounting and valuation concepts that are important to consider in merger and acquisition transactions.
Most clients achieve over 3,000% ROI when investing our services
More than 70% clients overcome financial distresses and avoided undesired consequences
Over 90% clients stay with us more than 10 years after engaging us
Complete integrated multi-disciplines for all SMEs’ management, marketing, IT, & financial needs
1st Ever Comprehensive Framework To Grow Company Healthily & Holistically With +Ve Cashflows
This document discusses the importance of generating revenue for startups. It notes that many founders are so focused on their ideas that they neglect to ensure their projects are financially viable by generating enough revenue to cover costs. The document outlines the revenue generation cycle, including identifying customer needs, creating matching products/services, defining value, constructing financial transactions, and itemizing profit and loss. It stresses that innovation alone does not create revenue and that founders must spend effort building revenue models. The conclusion advertises a startup workshop series that will address revenue generation and other critical challenges many founders face.
Financial Planning - Joel Humphrey (Freelandt Caldwell Reilly LLP)NORCAT
Joel Humphrey, partner at Freelandt Caldwell Reilly LLP returns to ENT101 to discuss financing for start-ups.
Joel works with many of the firm’s start-up clients to review business plans, develop financial forecasts, map out cash flow strategies and arrange financing requirements. With Joel’s extensive experience with young companies, this lecture will be extremely informative for all levels.
Watch the presentation at http://www.norcat.org/ent-101/season-3-lectures/
This document provides an overview of an accounting training workshop. It includes:
1) Objectives of helping participants understand key financial concepts and statements and make better business decisions.
2) An outline of course contents covering accounting principles, financial statement analysis, and key metrics.
3) Examples of accounting concepts discussed like the accounting equation, revenue and expense recognition, and the purpose of financial statements.
The document provides an overview of finance basics for managers. It covers key topics like the basics of financial management, understanding financial statements, financial analysis and decision making, and projecting financial scenarios for project management. Some key points include defining accounting and bookkeeping, explaining the purpose and limitations of financial statements like the balance sheet, income statement, and cash flow statement, discussing various financial ratios for analyzing liquidity, profitability, solvency, financial stability, and management efficiency, and introducing techniques for projecting costs and revenues of potential projects through cost benefit analysis, net present value, and return on investment.
Bba 2204 fin mgt week 4 cashflow & financial planningStephen Ong
This document provides an overview of cash flow and financial planning. It discusses key concepts like depreciation, statements of cash flows, operating cash flow, free cash flow, and financial planning processes. The learning goals are to understand tax depreciation, statements of cash flows, and financial planning, including long-term strategic plans and short-term operating plans like cash budgets and pro forma financial statements. Examples are provided to illustrate concepts like depreciation calculations and developing statements of cash flows. Ethics examples consider appropriate CEO compensation and ways accountants could portray favorable earnings.
The document provides information about finance director services for entrepreneurial companies. It discusses understanding a company's current financial position, key business drivers, cash flow needs, and how to prepare basic financial statements like the balance sheet, profit and loss statement, and cash flow statement. It also covers topics like break even analysis, financial reporting, taxation, and financial modeling and forecasting. The document aims to help entrepreneurs and business owners better understand their company's financials.
Accounting and Valuation Considerations in Business TransactionsSkoda Minotti
Determining the value of a privately-held entity is no easy task. More so, when you are buying or selling a business, the entire transaction process can be overwhelming and confusing. There are many financial and non-financial factors to consider in the transaction process. The implications of an improperly executed transaction can not only make a financial impact, but also put you at risk of key compliance matters, whether accounting, tax, or regulatory matters. This presentation will review the key accounting and valuation concepts that are important to consider in merger and acquisition transactions.
Most clients achieve over 3,000% ROI when investing our services
More than 70% clients overcome financial distresses and avoided undesired consequences
Over 90% clients stay with us more than 10 years after engaging us
Complete integrated multi-disciplines for all SMEs’ management, marketing, IT, & financial needs
1st Ever Comprehensive Framework To Grow Company Healthily & Holistically With +Ve Cashflows
This document discusses the importance of generating revenue for startups. It notes that many founders are so focused on their ideas that they neglect to ensure their projects are financially viable by generating enough revenue to cover costs. The document outlines the revenue generation cycle, including identifying customer needs, creating matching products/services, defining value, constructing financial transactions, and itemizing profit and loss. It stresses that innovation alone does not create revenue and that founders must spend effort building revenue models. The conclusion advertises a startup workshop series that will address revenue generation and other critical challenges many founders face.
The document summarizes a presentation on financial statement analysis for non-finance managers. It covers the objectives of the presentation which are to expose the basic principles of accounting, educate on the relevance of financial statements, provide understanding of financial statement elements and indicators, and interpret financial statements. It then discusses accounting concepts and principles like the economic entity, monetary unit, and historical cost assumptions. Specific accounting principles around matching revenues and expenses, revenue recognition, and the going concern assumption are also outlined. Finally, key accounting conventions regarding consistency, prudency, materiality and objectivity are defined.
Zipcar's business model relies on subscription fees from members and hourly rental fees. The key drivers of Zipcar's economics are the number of subscribers, hourly rental fees, and vehicle utilization rates. While the purchase of vehicles represents a large up-front fixed cost, ongoing costs like parking and maintenance are avoided when vehicles are rented by members. Zipcar's financial success depends on optimizing vehicle usage to cover fixed costs and generate profits. The founders should focus on growing the member base and improving vehicle usage rates through expanded offerings and locations.
The statement of cash flows shows how a company's operating, investing, and financing activities affected cash during an accounting period. It explains the net increase or decrease in cash. Cash includes cash equivalents such as money market accounts and treasury bills. The statement of cash flows classifies cash flows into operating, investing, and financing activities to provide information about cash receipts and payments. Adjustments must be made to the income statement to convert accrual-based figures to a cash basis for the operating activities section.
This document discusses cash flow forecasting. It defines cash flow as the amounts of money flowing into and out of a business over time, noting that cash flow is not the same as profit. Cash inflows include receipts from sales, debtors, loans, interest, and asset sales. Cash outflows include purchases, creditors, loan repayments, rent, and asset buys. The document explains how to construct a cash flow forecast by listing cash inflows and outflows over time periods. Cash flow forecasting helps identify potential cash flow problems and allows businesses to plan expenditures and seek additional cash if needed to avoid liquidity issues.
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...Irma Miller
This document provides an overview of financial forecasting and discusses key concepts such as planning, budgeting, and forecasting. It begins with two examples of how forecasting can positively or negatively impact a company's financial performance. It then discusses the relationships between planning, budgeting, and forecasting and how they differ. The document provides tips for explaining forecasting to non-financial executives and discusses important considerations like timelines, costs vs. benefits, and sensitivity analysis.
Construction Futures Wales - Managing Cash Flow 2016Rae Davies
This document discusses managing cash flow and developing cash management skills. It begins by introducing the Construction Futures Wales (CFW) program which provides consultancy support. It then discusses how CFW can help companies with cash flow issues through services like business diagnostics and leadership courses. The rest of the document focuses on developing cash management skills, including how to construct cash flow forecasts and monitor key performance indicators. It emphasizes that cash management requires considering other business functions and processes that impact cash flow. Companies are encouraged to take the CFW health check and attend upcoming events to get help improving their cash management.
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...DINOLEONANDRI
The document discusses managing working capital in hotel industries. It defines working capital as the short-term assets used to fund daily operations, such as cash, receivables, and inventory. It also discusses the cash conversion cycle where cash is used to purchase inventory, turned into receivables through sales, and then collected as cash. Managing working capital involves balancing current assets and liabilities to ensure sufficient short-term funds and liquidity. The goal is to efficiently manage resources and improve cash flow.
Basics of Financial Management for Non Finance Executives - Part 1SChakrabarti
This is an introductory Session of Financial Management for Non Finance executives. it covers the basic Financial concepts and provides an overview of Financial Statements, different types of transactions and the similarities and differences between assets & expenses.
The document provides guidance on creating financial projections for a business called Area48. It recommends creating projections for 3-5 years, with the first 2 years projected monthly and subsequent years quarterly or annually. The document reviews terminology used in projections, accounting concepts, and the standard income statement format used to organize projections in a spreadsheet. It also lists common line items to include in projections such as revenues, costs, operating expenses like wages, rent, and marketing.
Non finance professionals ppt @ bec doms bagalkotBabasab Patil
The document outlines an agenda for a webinar on finance for non-finance professionals. It aims to help participants gain a basic understanding of finance principles, evaluate finance-related decisions, and participate knowledgeably in discussions. Key topics to be covered include the purpose of businesses, interpreting financial statements, ratio analysis, and basic finance concepts like ROI, IRR, and time value of money. The webinar also aims to explain how participants can apply their new financial knowledge.
Get a sample on Financial statement analysis explaining how equity investors have the objectives to know the business future earning capacity, growth potential and security of their holdings. All the investors are very much interested to get higher amount of returns. Therefore, they make risk and return analysis associated with their invested funds. Lenders such as bond investors have the objectives to know the short term as well as long term solvency of the business (Bushman and Smith, 2001).
The document provides an overview of key finance concepts for non-finance professionals, including:
1) The purpose of financial statements is to measure a company's performance and determine how wealth is distributed to stakeholders. Key statements are the balance sheet, income statement, and cash flow statement.
2) The balance sheet shows sources of funds (liabilities) and uses of funds (assets) on a given date. The income statement shows revenues, expenses, and profits over a period of time. The cash flow statement links accrual accounting to cash flows.
3) Understanding financial statements allows non-finance staff to evaluate decisions, track company performance, and interact knowledgeably with finance teams.
Welcome to Module 2 of One day intensive course on Finance for Non finance Managers/Professionals
This course consists of five modules, each dealing with different aspects of financial management.
One of the core elements of financial management is the three financial statements
Module 2 relates to discussion of the Blance Sheet-what is a Balance Sheet and how to read, interpret and use it
This document summarizes different types of financial statement analysis including percentage, ratio, horizontal, and vertical analysis. It discusses various liquidity, profitability, efficiency, and solvency ratios that are used in financial statement analysis such as current ratio, acid test ratio, profit margin, return on assets, inventory turnover, and debt ratio. The document provides examples of how to calculate each type of ratio using financial data from sample company statements.
Finance for non financial personnel - part 8Quek Joo Chay
Many non-financial personnel find finance is mystical and somehow cannot comprehend financial information.
The 8 parts of the presentation are designed to help the non-financial personnel to look at finance from their own view point. Instead of learn finance from finance perspective, we learn our own perspective.
This is because your goal is to improve your current work not to become a qualified accountant. Crash courses usually can’t provide sufficient knowledge for you to understand finance.
Designed from business’s viewpoint, different from other approaches found in the market. Hopefully, we can equip non-financial personnel with business driven financial knowledge.
By end of the 8 presentation:
1. You can create your value to increase financial value
2. You can interpret financial reports to make decisions
3. You know how to work on budget
4.You can propose your ideas in terms of dollars & cents
5. You produce the financial numbers that your boss likes
6. You can communicate well with finance department
7. You make collaboration with accountant possible instead of just for the sake of formality
This document discusses various techniques for financial forecasting and projections. It provides an overview of preparing pro forma income statements and balance sheets using percentage of sales and budgeted expense methods. An example pro forma income statement and assumptions are presented. Key points covered are sales forecasting techniques, calculating external funding requirements for growth, and preparing other supporting financial projections like cash budgets and operating budgets.
This presentation discusses managing cash flow. It defines cash flow management as forecasting, collecting, disbursing, investing, and planning for cash needs. A cash budget or "cash map" is created to predict cash needs over time. The five steps to prepare a cash budget are determining a minimum cash balance, forecasting sales, forecasting cash receipts, forecasting cash disbursements, and estimating the end-of-month cash balance. Managing accounts receivable, accounts payable, and inventory are described as the "Big Three" of cash flow management. Tips are provided to accelerate cash receipts and stretch out cash disbursements.
For full text article go to : https://www.educorporatebridge.com/finance-for-non-finance/finance-for-non-finance-professionals/
This article on Finance for Non Finance Professionals will help you to gain basic finance knowledge, accounting concepts and better understanding of financial statement required for growth of your organization.
This document discusses various aspects of planning in healthcare organizations. It begins by defining planning as a continuous process of establishing goals, implementing plans, and evaluating results. The importance of planning is then outlined, including focusing on results, improving decisions, establishing frameworks for decision-making, and avoiding crisis management. The document also discusses the scope of planning according to manager level, major aspects of planning, characteristics of good plans, and various moments in the planning process such as developing mission/vision statements, setting goals/objectives, creating standards and procedures, and establishing budgets.
Krista Warkus Levesque of DiBrina Sure Group talks about how to prepare for recruitment, screening candidates, what do to (and not do) in interviews and hiring a candidate for your business.
The document summarizes a presentation on financial statement analysis for non-finance managers. It covers the objectives of the presentation which are to expose the basic principles of accounting, educate on the relevance of financial statements, provide understanding of financial statement elements and indicators, and interpret financial statements. It then discusses accounting concepts and principles like the economic entity, monetary unit, and historical cost assumptions. Specific accounting principles around matching revenues and expenses, revenue recognition, and the going concern assumption are also outlined. Finally, key accounting conventions regarding consistency, prudency, materiality and objectivity are defined.
Zipcar's business model relies on subscription fees from members and hourly rental fees. The key drivers of Zipcar's economics are the number of subscribers, hourly rental fees, and vehicle utilization rates. While the purchase of vehicles represents a large up-front fixed cost, ongoing costs like parking and maintenance are avoided when vehicles are rented by members. Zipcar's financial success depends on optimizing vehicle usage to cover fixed costs and generate profits. The founders should focus on growing the member base and improving vehicle usage rates through expanded offerings and locations.
The statement of cash flows shows how a company's operating, investing, and financing activities affected cash during an accounting period. It explains the net increase or decrease in cash. Cash includes cash equivalents such as money market accounts and treasury bills. The statement of cash flows classifies cash flows into operating, investing, and financing activities to provide information about cash receipts and payments. Adjustments must be made to the income statement to convert accrual-based figures to a cash basis for the operating activities section.
This document discusses cash flow forecasting. It defines cash flow as the amounts of money flowing into and out of a business over time, noting that cash flow is not the same as profit. Cash inflows include receipts from sales, debtors, loans, interest, and asset sales. Cash outflows include purchases, creditors, loan repayments, rent, and asset buys. The document explains how to construct a cash flow forecast by listing cash inflows and outflows over time periods. Cash flow forecasting helps identify potential cash flow problems and allows businesses to plan expenditures and seek additional cash if needed to avoid liquidity issues.
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...Irma Miller
This document provides an overview of financial forecasting and discusses key concepts such as planning, budgeting, and forecasting. It begins with two examples of how forecasting can positively or negatively impact a company's financial performance. It then discusses the relationships between planning, budgeting, and forecasting and how they differ. The document provides tips for explaining forecasting to non-financial executives and discusses important considerations like timelines, costs vs. benefits, and sensitivity analysis.
Construction Futures Wales - Managing Cash Flow 2016Rae Davies
This document discusses managing cash flow and developing cash management skills. It begins by introducing the Construction Futures Wales (CFW) program which provides consultancy support. It then discusses how CFW can help companies with cash flow issues through services like business diagnostics and leadership courses. The rest of the document focuses on developing cash management skills, including how to construct cash flow forecasts and monitor key performance indicators. It emphasizes that cash management requires considering other business functions and processes that impact cash flow. Companies are encouraged to take the CFW health check and attend upcoming events to get help improving their cash management.
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...DINOLEONANDRI
The document discusses managing working capital in hotel industries. It defines working capital as the short-term assets used to fund daily operations, such as cash, receivables, and inventory. It also discusses the cash conversion cycle where cash is used to purchase inventory, turned into receivables through sales, and then collected as cash. Managing working capital involves balancing current assets and liabilities to ensure sufficient short-term funds and liquidity. The goal is to efficiently manage resources and improve cash flow.
Basics of Financial Management for Non Finance Executives - Part 1SChakrabarti
This is an introductory Session of Financial Management for Non Finance executives. it covers the basic Financial concepts and provides an overview of Financial Statements, different types of transactions and the similarities and differences between assets & expenses.
The document provides guidance on creating financial projections for a business called Area48. It recommends creating projections for 3-5 years, with the first 2 years projected monthly and subsequent years quarterly or annually. The document reviews terminology used in projections, accounting concepts, and the standard income statement format used to organize projections in a spreadsheet. It also lists common line items to include in projections such as revenues, costs, operating expenses like wages, rent, and marketing.
Non finance professionals ppt @ bec doms bagalkotBabasab Patil
The document outlines an agenda for a webinar on finance for non-finance professionals. It aims to help participants gain a basic understanding of finance principles, evaluate finance-related decisions, and participate knowledgeably in discussions. Key topics to be covered include the purpose of businesses, interpreting financial statements, ratio analysis, and basic finance concepts like ROI, IRR, and time value of money. The webinar also aims to explain how participants can apply their new financial knowledge.
Get a sample on Financial statement analysis explaining how equity investors have the objectives to know the business future earning capacity, growth potential and security of their holdings. All the investors are very much interested to get higher amount of returns. Therefore, they make risk and return analysis associated with their invested funds. Lenders such as bond investors have the objectives to know the short term as well as long term solvency of the business (Bushman and Smith, 2001).
The document provides an overview of key finance concepts for non-finance professionals, including:
1) The purpose of financial statements is to measure a company's performance and determine how wealth is distributed to stakeholders. Key statements are the balance sheet, income statement, and cash flow statement.
2) The balance sheet shows sources of funds (liabilities) and uses of funds (assets) on a given date. The income statement shows revenues, expenses, and profits over a period of time. The cash flow statement links accrual accounting to cash flows.
3) Understanding financial statements allows non-finance staff to evaluate decisions, track company performance, and interact knowledgeably with finance teams.
Welcome to Module 2 of One day intensive course on Finance for Non finance Managers/Professionals
This course consists of five modules, each dealing with different aspects of financial management.
One of the core elements of financial management is the three financial statements
Module 2 relates to discussion of the Blance Sheet-what is a Balance Sheet and how to read, interpret and use it
This document summarizes different types of financial statement analysis including percentage, ratio, horizontal, and vertical analysis. It discusses various liquidity, profitability, efficiency, and solvency ratios that are used in financial statement analysis such as current ratio, acid test ratio, profit margin, return on assets, inventory turnover, and debt ratio. The document provides examples of how to calculate each type of ratio using financial data from sample company statements.
Finance for non financial personnel - part 8Quek Joo Chay
Many non-financial personnel find finance is mystical and somehow cannot comprehend financial information.
The 8 parts of the presentation are designed to help the non-financial personnel to look at finance from their own view point. Instead of learn finance from finance perspective, we learn our own perspective.
This is because your goal is to improve your current work not to become a qualified accountant. Crash courses usually can’t provide sufficient knowledge for you to understand finance.
Designed from business’s viewpoint, different from other approaches found in the market. Hopefully, we can equip non-financial personnel with business driven financial knowledge.
By end of the 8 presentation:
1. You can create your value to increase financial value
2. You can interpret financial reports to make decisions
3. You know how to work on budget
4.You can propose your ideas in terms of dollars & cents
5. You produce the financial numbers that your boss likes
6. You can communicate well with finance department
7. You make collaboration with accountant possible instead of just for the sake of formality
This document discusses various techniques for financial forecasting and projections. It provides an overview of preparing pro forma income statements and balance sheets using percentage of sales and budgeted expense methods. An example pro forma income statement and assumptions are presented. Key points covered are sales forecasting techniques, calculating external funding requirements for growth, and preparing other supporting financial projections like cash budgets and operating budgets.
This presentation discusses managing cash flow. It defines cash flow management as forecasting, collecting, disbursing, investing, and planning for cash needs. A cash budget or "cash map" is created to predict cash needs over time. The five steps to prepare a cash budget are determining a minimum cash balance, forecasting sales, forecasting cash receipts, forecasting cash disbursements, and estimating the end-of-month cash balance. Managing accounts receivable, accounts payable, and inventory are described as the "Big Three" of cash flow management. Tips are provided to accelerate cash receipts and stretch out cash disbursements.
For full text article go to : https://www.educorporatebridge.com/finance-for-non-finance/finance-for-non-finance-professionals/
This article on Finance for Non Finance Professionals will help you to gain basic finance knowledge, accounting concepts and better understanding of financial statement required for growth of your organization.
This document discusses various aspects of planning in healthcare organizations. It begins by defining planning as a continuous process of establishing goals, implementing plans, and evaluating results. The importance of planning is then outlined, including focusing on results, improving decisions, establishing frameworks for decision-making, and avoiding crisis management. The document also discusses the scope of planning according to manager level, major aspects of planning, characteristics of good plans, and various moments in the planning process such as developing mission/vision statements, setting goals/objectives, creating standards and procedures, and establishing budgets.
Krista Warkus Levesque of DiBrina Sure Group talks about how to prepare for recruitment, screening candidates, what do to (and not do) in interviews and hiring a candidate for your business.
Daryl Dominique, Josh Martin, and Jorden Colwell of CMD Prototyping discuss what to look out for when hiring a firm to manufacture a product for your company. They also give a tour of the new Fortin Discovery Lab and demonstrate the manufacturing and certification technology available in the lab.
Watch the video at https://www.youtube.com/watch?v=4sTBSnWkk8Y and at norcat.org
What keeps you up at night? As a business owner you have a lot on your mind. Wouldn't it be nice to know an expert is there to help you through your financial challenges?
This document outlines the go-to-market strategy and phases of growth for a coffee roasting business from 2004 to 2007. It discusses learning to roast coffee, identifying ideal blends, trialing the product with friends and family, and having early sales with customers to gather feedback. If satisfaction was great, the business would move to the next phase of creating an ancillary offering, online ordering, and trialing sales over the holiday period. The original business plan objectives were achieved within two years. By 2007, the business was optimizing retail and wholesale operations and increasing the number of store locations. Ten years later, the business had expanded to 2 locations and 3 outlets, received numerous awards, launched K-cups, and was in
(1) The document provides an overview of key financial concepts for startups, including profit and loss statements, balance sheets, and cash flow statements. (2) It notes that while established businesses have stable finances, startups have unstable business activities that require significant investment and negative cash flows in the early stages. (3) The document emphasizes that startups need to track metrics like cash burn rate, customer acquisition cost, and conversion rates to measure progress and attract investors.
Financial plan and controll entrepreneurshipfatimanajam4
This file is uploaded to help the students learning finance easier. It will give a general understanding of planning and controlling of financial resources.
Cash flow is the lifeblood of a business and measures its ability to pay bills on time. It depends on the timing and amount of money coming into and going out of the business. Cash inflows include payments from customers, loans, and investments, while cash outflows comprise expenses like materials, wages, taxes, and loan repayments. Cash flow and profit are different - a business can be profitable but still experience cash flow issues. Careful cash flow forecasting and management, like collecting debts promptly or leasing equipment, can help improve a business's cash position over time.
The document discusses the needs and purposes of key financial statements including the income statement, balance sheet, and statement of cash flows. It explains the components and calculations of these statements. It also describes common financial ratios used in analysis of statements, such as liquidity, profitability, asset management, and leverage ratios. These ratios are used to evaluate a firm's performance and financial position over time and in comparison to other companies.
This presentation was made at the Washington Area Community Investment Fund (Wacif). This presentation goes over how to use financial statements and tools to make decisions.
Business bootcamp "know your numbers" presentationMatt Deutsch
This document provides an introduction to financial statements and key financial metrics for small business owners. It discusses the importance of setting up systems to gather and analyze financial data on a consistent basis. The three basic financial statements are introduced as the balance sheet, income statement, and cash flow statement. Key metrics for evaluating liquidity and solvency like current ratio, debt-to-equity ratio, and interest coverage ratio are defined. The document concludes with five "proactive accounting commandments" including managing cash flow, understanding gross margins, knowing breakeven points, strategic pricing, and creating a financial plan.
The document discusses key financial statements including the balance sheet, income statement, statement of retained earnings, and statement of cash flows. It provides examples of the components and format of each statement. The balance sheet presents a company's assets, liabilities, and equity on a given date. The income statement summarizes revenues and expenses over a period of time to arrive at net income. The statement of retained earnings tracks the changes in a company's retained earnings balance. Finally, the statement of cash flows provides information on a company's cash inflows and outflows.
The document discusses key financial statements including the balance sheet, income statement, statement of retained earnings, and statement of cash flows. It provides examples of the components and format of each statement. The balance sheet presents a company's assets, liabilities, and equity on a given date. The income statement summarizes revenues and expenses over a period of time to arrive at net income. The statement of retained earnings tracks the changes in a company's retained earnings balance. Finally, the statement of cash flows provides information on a company's cash inflows and outflows.
The document provides an overview of the statement of cash flows, including its purpose, classification of cash flows into operating, investing and financing activities, and methods for preparing the statement. Specifically, it discusses how to determine cash flows from operating activities using the indirect method by making adjustments to items on the income statement that do not affect cash, such as depreciation, gains and losses, and changes in current assets and liabilities.
The document outlines an agenda for a startup leadership program on financial modeling. It includes presentations on what a financial model is, how to build an income statement, balance sheet, and cash flow statement. It discusses how financial models are useful for entrepreneurs and startups by providing an analytical lens, operating roadmap, risk assessment, scenario exploration, and as a pitch tool for investors. The document also covers best practices for model construction and common business metrics and economic indicators analyzed in financial models.
This document discusses corporate and functional objectives and strategies. It explains that corporate objectives guide the goals of the whole organization, while functional objectives guide each business area based on corporate objectives. Several financial objectives are then outlined, including cash flow targets and cost minimization. Common financial statements like the balance sheet and income statement are explained. Ratio analysis is introduced as a way to measure business performance through ratios like profitability, liquidity, efficiency, gearing, and shareholder returns. The document concludes with a discussion of investment appraisal techniques like payback period, average rate of return, and net present value.
This document discusses the statement of cash flows and financial analysis. It provides examples of constructing a statement of cash flows for an individual and a business. It explains the three sections of the statement of cash flows - operating, investing, and financing activities. It also discusses various types of ratios used in financial analysis, including liquidity, asset management, debt management, and profitability ratios.
A presentation about the Cash Flow Statement ,whole chapter is covered in the slides .one can easily understand the concept of cash flow statement
and a video is also there but link went missing so please search it on youtube by the name of "cash flow statement in 3-min" a beautiful video to understand the basic concept of cash flow statement.In the end a numerical has solved for the better understanding ,which let u fetch marks in your examinations.
CFO Insight For Business Owners: How to Utilize Financial StatementsChase R. Morrison
CFO Insight: This is a primer on how to use financial statements to more effectively operate a privately held business and was used to educate new entrepreneurs at the Valley Economic Development Corporation in Sherman Oaks, CA.
1. Financial analytics is a field that provides insights into a company's financial data to improve business performance. It helps gain knowledge and take corrective actions.
2. Key financial metrics analyzed include balance sheets, income statements, and cash flow statements. Financial analytics aids decision making, planning, and risk management.
3. Important financial KPIs include gross profit margin, net profit margin, working capital, current ratio, quick ratio, Berry ratio, cash conversion cycle, accounts payable turnover, and return on assets. These metrics provide insights on profitability, liquidity, efficiency and more.
This document provides information about calculating costs for a business called SABKAVIKAS, which provides training in various topics. It discusses the importance of costing for decision making, financial statements, and determining viability. Various types of costs are defined, such as fixed, variable, and initial costs. Methods for measuring value, return on investment, and break-even point are also introduced. The document aims to help attendees understand how to compute costs and use that information for planning and controlling their business.
Budgeting is a process of expressing quantified resource requirements (amount of capital, amount of material, number of people) into time-phased goals and milestones.
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2. Why is financial planning important?
Basic components of the financial plan
Forecasting and budgeting for your
start-up
Overview of financial statements
Financing your business start-up
Tools and resources
5. Critical part of the business plan – the
numbers have to make sense!
A good financial plan has all of these
components.
Integrate with business plan.
Typical timeframe 3-5 years.
The first year should be broken down
by month.
Should be consistently updated with
new and more reliable information.
Sales Forecast
Expense Budget
Capital Asset Budget
Cash Flow Budget
6.
7. Forecasting sales and your sale pattern is the most
fundamental component of the financial plan – and
the most difficult!
A financial budget is only as accurate as the sales
forecast.
Use market data to establish realistic targets (e.g.
Greater Sudbury Statistics Guide).
Consider order backlog, probability of securing
contracts.
Understand the cyclicality of your sales pattern
(months of high or low demand). Use historical data
to identify trends.
Review your budget with your accountant to get
feedback on assumptions.
A sales forecast allows you to determine the timing and volume of cash and
credit sales.
Revenue
Forecasting
Volume
Forecasting
8. • Initial inventory
• Incorporation fees, licenses, permits
• Employee recruitment, training
• Down payments on equipment
• Marketing materials, advertising
Start-Up Costs / Expenses
• Salaries and benefits
• Cost of goods sold
• Rent, interest on mortgage and loans
• Marketing
• Office supplies
• Utilities
Ongoing Expenses
Fixed Expenses
◦ Expenses that are paid
independent of business
activity (e.g. rent)
Variable Expenses
◦ Expenses that change in
direct proportion to
production or service
volume (e.g. direct labour)
An expense budget will help you plan for where the money is going. Budgeting and
tracking expenses will lend perspective to “want” versus “need”.
9. How to determine what your business expenses are.
Start with fixed expenses that are predictable
(rent, property taxes etc).
Variable expenses can be identified by thinking
through the production, sales and delivery
processes (labour, cost of goods sold,
transportation etc).
Cost of goods sold can often be expressed as a
percentage of sales (gross margin).
Build in a contingency for unplanned expenses
– there will be!
Be conservative but realistic.
10. Capital budgeting is a process by which a business determines whether investing in
property and equipment is worth pursuing.
Criteria Categories
Hardware/software
Leasehold
improvements
Equipment/furniture
Land and buildings
Generates profits
Acquired for
continuous use
Not intended for sale in
ordinary operations
Useful life extends over
years
Capital assets are long-term assets that are
typically owned for a number of years.
Contribute to the business’s ability to generate
a profit (e.g. manufacturing equipment to
produce widgets).
Typically the biggest cash outlay in any business
start-up.
Debt financing should be matched with life of
the asset to align cash flows (e.g. building with
a 25 year mortgage, equipment with a 5 year
term loan).
11. Cash is King!
A company can be profitable but have negative cashflow
(profits do not necessarily coincide with cash inflow and
outflows).
One of the most common causes of business failure is a
cash crisis.
Start-up companies need cash for investment and have a
longer initial cash cycle (“cash sponges”).
Companies in the growth stage need to manage the cash
cycle to avoid a cash crisis. It’s not all about revenue
growth!
Understanding your cash flow is key to making decisions
on how to manage cash, making investment decisions
and to matching financing to cash needs.
A cash flow budget will tell you if you have enough cash to make ends meet.
12.
13. A cash flow budget represents the amount and timing of
a company’s cash disbursements and cash receipts over
time.
Basic formula: Beginning cash + cash receipts – cash
disbursements = ending cash.
Will help to identify cash peeks and valleys that can be
used to predict cash needs and to arrange financing.
Requires forecasted sales, cash receipts (collection of
receivables etc.) and cash disbursements (suppliers,
payroll etc.).
Be mindful of the timing of CRA payments (HST, payroll
source deductions, income taxes, tax installments).
Again, be realistic and conservative. Use best and worst
case scenarios.
An important tool for managing cash flow.
14.
15. As a result the following must remain true:
The balance sheet is a financial statement that serves as a snap shot of the
business at any point in time.
Assets
• Things a
business owns
Liabilities
• Debts a
business owes
Equity
• The owners
investment and
re-investment in
the business
16. Current Assets
Fixed Assets &
intangibles
Current Assets
Long-term Assets
Shareholder’s Equity
John's Manufacturing Company Statement of Financial Position
Projected Statement of Financial Position
As at May 31, 2014
(unaudited - see notice to reader)
2014 2013
Assets
Current
Cash 516,115$ 433,027$
Accounts receivable 483,500 254,688
Inventory 195,788 195,788
1,195,403 883,503
Equipment and leasehold improvements 202,355 164,875
Financing charges 7,650 7,650
Goodwill 350,000 350,000
1,755,408$ 1,406,028$
Liabilities and shareholder's equity
Current
Accounts payable and accrued liabilities 306,122$ 222,086$
Income taxes payable 91,200 79,800
Current portion of long-term debt 40,879 37,369
438,201 339,255
Due to shareholder 25,076 25,073
Long-term debt 355,362 444,710
818,639.00$ 809,039$
Shareholder's equity
Share capital 200 200
Retained earnings (deficit) 936,569 596,789
936,769 596,989
1,755,408$ 1,406,028$
17. The income statement is a financial statement that measures a company’s
financial performance over a specific accounting period.
Revenue
• Value of goods
and services
sold
Expenses
• Costs incurred
by the business
to generate
income
Net Income
• Bottom line
used as
indicator of
profitability
18. Revenue/Sales
-Less: Cost of sales
=Equals: Gross profit
-Less: operating expenses
=Equals: Net income before tax
Net income before tax
-Less: income taxes
=Net income
A summary of revenues and expenses for a given
period of time…
John's Manufacturing Company Statement of Earnings
Projected Statement of Earnings
For the years ended May 31
2014 2013
[Note 1]
Revenue 2,417,500$ 2,037,500$
Cost of Sales 1,296,000$ 1,079,875$
Gross Profit 1,121,500$ 957,625$
46% 47%
Expenses
Salaries and benefits 108,000$ 90,000$
Office and general 152,000 127,000
Vehicle 53,000 44,000
Professional fees 46,000 38,000
Travel 43,000 36,000
Rent 41,000 34,000
Shop supplies 28,000 23,000
Insurance 23,000 19,000
Interest on long-term debt 23,000 19,000
Marketing and promotion 16,000 13,000
533,000$ 443,000$
Earnings before amortization and income taxes 588,500$ 514,625$
Amortization 37,520 20,763
Earnings before income taxes 550,980 493862.1
Income tax provisions 91,200 79,800
Net earnings 459,780$ 414,062$
Retained earnings (deficit), beginning of year 596,789$ 272,727$
Dividends paid (120,000) (90,000)
Retained earnings (deficit), end of year 936,569$ 596,789$
19. The statement of cash flows is a financial statement that shows the amount of
cash generated and used by a business in a given period.
Cash Flows from
Operations
• measurement of the
amount of cash
generated by a
company’s normal
business operations
Cash Flows from Investing
Activities
• change in a company’s
cash resulting from
buying and selling
investments and
investing in capital assets
Cash Flows from Financing
Activities
• change in cash resulting
from issuing stocks,
taking or repaying loans
and paying dividends
20. John's Manufacturing Company Statement of Cash Flows
Statement of Cash Flows
Twelve months ended May 31, 2014
2014 2013
Cashflows from (to) operating activities
Cash receipts from customers 2,188,688$ 2,266,313$
Cash paid to suppliers (1,744,961) (1,606,911)
Income taxes (79,800)
363,927$ 659,401$
Cash flows from (to) investing activities
Acquisition of equipment and leasehold improvements (75,000) (150,000)
Acquisition of goodwill - (350,000)
(75,000)$ (500,000)$
Cash flows from (to) financing activities
Proceeds on issuance of long-term debt - 850,000
Repayment of long-term debt (85,839) (565,839)
Dividends paid to shareholders (120,000) (90,000)
(205,839)$ 194,161$
Increase in cash 83,088$ 353,562$
Cash (bank indebtedness), beginning of year 869,677 516,115
Cash (bank indebtedness), end of year 952,765$ 869,677$
Statement of Cash Flows
21. Projected or estimated financial statements that attempts to present a reasonably
accurate picture of the financial plan.
“Forward looking” financial statements (balance
sheet, income statement and statement of cash
flows).
A tool used by businesses to evaluate the
feasibility of a financial plan.
Often a requirement to obtain loans from banks
and other lenders.
Based on the sales, expense, capital and cash
budgets.
You may need the help of an accountant to
prepare these statements.
22. Balance Sheet
• Snapshot • A - L = E • summary of
financial
position
Income Statement
• Period of
time
• Revenues
and gains v.
expenses and
losses
• summary of
profitability
Statement of Cash Flow
•Period of
time
• Operating v.
investing v.
financing
activities
• summary of
actual flow of
cash in and
out of
business
FS Relationships FS Summary
25. There are many types of loans you can use to finance aspects of your business
start-up.
Operating line of credit used to fund short-
term cash needs.
Terms loans used to buy capital assets
(equipment, vehicles).
Mortgages term loan for land and building.
Leases equipment, machinery and vehicles.
Shareholder loans startup capital.
Make sure to get advice from a lawyer or
accountant before signing any banking or loan
agreement
26. Securing small business financing can be challenging.
A well thought out business plan to establish
feasibility.
Depth of management, experience,
professionalism.
Creditworthiness.
Earnings potential, pro forma financial
statements.
Owner investment (at least 10%).
Pledge of security (GSA, charge on assets,
personal guarantee).
Ability to repay debt (ratio of debt to equity,
free cash flow to service principle and interest).
27.
28.
29.
30. Background
John has developed an innovative product.
John incorporated a company on January 1st.
Assumptions
John did his market analysis and believes he can earn a 50% gross profit on his sales.
He expects “hockey stick” growth over the next 6 months.
Revenue is collected 30 days after sales are made.
Due to the manufacturing lead time, John has to pay for goods one month ahead of
sales.
John plans to draw $2,500 per month as a salary until the business gets going.
John has $50,000 in cash to start his business.
A family member has offered to loan him $25,000 but John doesn’t think he needs it.
31. Jan Feb Mar Apr May Jun Jul
Revenue -$ 12,500$ 37,500$ 62,500$ 120,000$ 150,000$ 170,000$
Cost of Sales -$ 6,250$ 18,750$ 31,250$ 50,000$ 68,750$ 85,000$
Gross Margin -$ 6,250$ 18,750$ 31,250$ 70,000$ 81,250$ 85,000$
SG&A 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$
Net Income (2,500)$ 3,750$ 16,250$ 28,750$ 67,500$ 78,750$ 82,500$
John's Manufacturing Company
Monthly Income Statement
January - June 2013
32. Jan Feb Mar Apr May Jun Jul
Revenue -$ 12,500$ 37,500$ 62,500$ 120,000$ 150,000$ 170,000$
Cost of Sales -$ 6,250$ 18,750$ 31,250$ 50,000$ 68,750$ 85,000$
Gross Margin -$ 6,250$ 18,750$ 31,250$ 70,000$ 81,250$ 85,000$
SG&A 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$
Net Income (2,500)$ 3,750$ 16,250$ 28,750$ 67,500$ 78,750$ 82,500$
John's Manufacturing Company
Monthly Income Statement
January - June 2013
Jan Feb Mar Apr May Jun Jul
Starting Cash 50,000$ 41,250$ 20,000$ (1,250)$ (16,250)$ (25,000)$ 7,500$
Plus: Revenue (1 Month Delayed) -$ -$ 12,500$ 37,500$ 62,500$ 120,000$ 150,000$
Minus: Cost of Sales(1Month Ahead) (6,250)$ (18,750)$ (31,250)$ (50,000)$ (68,750)$ (85,000)$ (90,000)$
Minus: SG&A (2,500)$ (2,500)$ (2,500)$ (2,500)$ (2,500)$ (2,500)$ (2,500)$
Cash Gain/(Loss) (8,750)$ (21,250)$ (33,750)$ (52,500)$ (71,250)$ (87,500)$ (92,500)$
Ending Cash 41,250$ 20,000$ (1,250)$ (16,250)$ (25,000)$ 7,500$ 65,000$
Cash Projection
33. Jan Feb Mar Apr May Jun Jul
Revenue -$ 12,500$ 37,500$ 62,500$ 120,000$ 150,000$ 170,000$
Cost of Sales -$ 6,250$ 18,750$ 31,250$ 50,000$ 68,750$ 85,000$
Gross Margin -$ 6,250$ 18,750$ 31,250$ 70,000$ 81,250$ 85,000$
SG&A 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$
Net Income (2,500)$ 3,750$ 16,250$ 28,750$ 67,500$ 78,750$ 82,500$
John's Manufacturing Company
Monthly Income Statement
January - June 2013
Jan Feb Mar Apr May Jun Jul
Starting Cash 50,000$ 41,250$ 20,000$ (1,250)$ (16,250)$ (25,000)$ 7,500$
Plus: Revenue (1 Month Delayed) -$ -$ 12,500$ 37,500$ 62,500$ 120,000$ 150,000$
Minus: Cost of Sales(1Month Ahead) (6,250)$ (18,750)$ (31,250)$ (50,000)$ (68,750)$ (85,000)$ (90,000)$
Minus: SG&A (2,500)$ (2,500)$ (2,500)$ (2,500)$ (2,500)$ (2,500)$ (2,500)$
Cash Gain/(Loss) (8,750)$ (21,250)$ (33,750)$ (52,500)$ (71,250)$ (87,500)$ (92,500)$
Ending Cash 41,250$ 20,000$ (1,250)$ (16,250)$ (25,000)$ 7,500$ 65,000$
Cash Projection
34. Jan Feb Mar Apr May Jun Jul
Revenue -$ 12,500$ 37,500$ 62,500$ 120,000$ 150,000$ 170,000$
Cost of Sales -$ 6,250$ 18,750$ 31,250$ 50,000$ 68,750$ 85,000$
Gross Margin -$ 6,250$ 18,750$ 31,250$ 70,000$ 81,250$ 85,000$
SG&A 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$
Net Income (2,500)$ 3,750$ 16,250$ 28,750$ 67,500$ 78,750$ 82,500$
John's Manufacturing Company
Monthly Income Statement
January - June 2013
Jan Feb Mar Apr May Jun Jul
Starting Cash 50,000$ 41,250$ 20,000$ (1,250)$ (16,250)$ (25,000)$ 7,500$
Plus: Revenue (1 Month Delayed) -$ -$ 12,500$ 37,500$ 62,500$ 120,000$ 150,000$
Minus: Cost of Sales(1Month Ahead) (6,250)$ (18,750)$ (31,250)$ (50,000)$ (68,750)$ (85,000)$ (90,000)$
Minus: SG&A (2,500)$ (2,500)$ (2,500)$ (2,500)$ (2,500)$ (2,500)$ (2,500)$
Cash Gain/(Loss) (8,750)$ (21,250)$ (33,750)$ (52,500)$ (71,250)$ (87,500)$ (92,500)$
Ending Cash 41,250$ 20,000$ (1,250)$ (16,250)$ (25,000)$ 7,500$ 65,000$
Cash Projection
35. Jan Feb Mar Apr May Jun Jul
Revenue -$ 12,500$ 37,500$ 62,500$ 120,000$ 150,000$ 170,000$
Cost of Sales -$ 6,250$ 18,750$ 31,250$ 50,000$ 68,750$ 85,000$
Gross Margin -$ 6,250$ 18,750$ 31,250$ 70,000$ 81,250$ 85,000$
SG&A 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$
Net Income (2,500)$ 3,750$ 16,250$ 28,750$ 67,500$ 78,750$ 82,500$
John's Manufacturing Company
Monthly Income Statement
January - June 2013
Jan Feb Mar Apr May Jun Jul
Starting Cash 75,000$ 66,250$ 45,000$ 23,750$ 8,750$ -$ 32,500$
Plus: Revenue (1 Month Delayed) -$ -$ 12,500$ 37,500$ 62,500$ 120,000$ 150,000$
Minus: Cost of Sales(1Month Ahead) (6,250)$ (18,750)$ (31,250)$ (50,000)$ (68,750)$ (85,000)$ (90,000)$
Minus: SG&A (2,500)$ (2,500)$ (2,500)$ (2,500)$ (2,500)$ (2,500)$ (2,500)$
Cash Gain/(Loss) (8,750)$ (21,250)$ (33,750)$ (52,500)$ (71,250)$ (87,500)$ (92,500)$
Ending Cash 66,250$ 45,000$ 23,750$ 8,750$ -$ 32,500$ 90,000$
Cash Projection
36. The following organizations provide some excellent tools and resources for small
business start-ups
Regional Business Centre – www.regionalbusiness.ca
Northern Ontario Heritage Fund Corporation – www.nohfc.ca
Nickel Basin Federal Development Corporation – www.nickelbasin.com
FedNor – fednor.gc.ca
Canada Small Business Financing Program (CSBF) – www.ic.gc.ca/csbfa
Northern Ontario Angels – www.noeg.ca
Canadian Youth Business Foundation – www.cybf.ca
Business Development Bank of Canada – www.bdc.ca
Waubetek Business Development Corporation – www.waubetek.com
Financial Viability
One of the most challenging components of planning your business start up is going to be laying out a sound financial plan
By putting thoughts and assumptions to paper, you can begin to map out the financial viability of your new venture
Putting together a plan is going to allow you to develop a model of how your business might perform financially, given a particular set of circumstances
It is also important to understand, especially for business start-ups that a solid financial plan can only support your effort secure loans or other types of funding – financial forecasts demonstrate to lenders and investors your ability to pay back the loan
Cash is King
Everyone has heard the term, however the point cannot be stressed enough. Cash has the ability to make or break your business and in order to give yourself the best chance at success, effective cash management is going to be integral
Macro events like seasonality and cyclical sensitivity to market conditions means your business is going to experience periods when cash is plentiful and others when extreme shortages can occur
Proper planning allows business owners to tighten the reins on spending, especially during low revenue periods
This level of planning will allow you to indentify future cash needs and determine whether or not additional borrowing or private equity is necessary
Trend Analysis and Bench Marking
Laying out a financial plan for your business provides the benefit of being able to benchmark against future performances
Decisions are made in the business every day, strategic or otherwise and it can be difficult to understand what works and what doesn’t. Proper financial planning means setting quantifiable targets which can be compared to actual and past results over the course of a year. Monitoring trends in revenue, income and cash flow allows you to understand the consequence (positive or negative)
Long Term Planning
The financial plan is a tool that encourages owners and management to forward focused, looking long term into the implications of decisions being made today.
While it is easy to get caught up in dealing with items as they arise, when it comes to the financial health of your company, spending time to identify what needs to be done to grow the business long term is very important
A financial plan is an integral tool, serving as a scorecard for performance and a map for continual improvement
Smart Spending
A critical element of success for any business start-up is the conservation of financial resources
By setting out a plan for yourself, you can identify which expenditures are going to have an immediate impact on your business and which expenditures can wait until cash is more plentiful
Measure Progress
The financial plan for any small business is an essential tool for measuring where you have been but more importantly, where you would like to go
In the beginning, it is going to be challenging and at times may be difficult to realise whether the business is heading in the right direction or is being mired in mediocrity
Benchmarking will allow owners the opportunity to compare results to expectations, providing feedback and encouragement in the start-up process