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Allocate the time you need to do certain parts of the Business Plan - Use calendar / Planner / Diary / Journal - Create a deadline for specific tasks If you are doing in a group, allocate specific tasks for a specified person
Clear Concise Organized Well laid out Natural Positive Well interpreted facts Do not jump to conclusions Show sources Proofread Make it perfect
15 – 20 slides 15 – 20 minutes Keep it simple Make it to the point Tell a story Dress professionally Practice ◦ In front of mirror ◦ In front of someone
Introduction (breaking the ice) Existing problem/pain/situation Solution (Product/service) you are providing Market research and strategy Who are involved How you can succeed
Its not just an idea, but a work in progress You have the numbers to back you up You have qualified people involved Be passionate in your presentation
Financial planning means to prepare the financial plan. capital plan] A financial plan is an estimate of the total capital requirements of the business. It selects the most economical sources of finance. Financial plan gives a total picture of the future financial activities of the business.
Taking a commercial business as the most common organizational structure, the key objectives of producing a financial plan would be to: Create wealth for the business Generate cash, and Provide an adequate return on investment
InflowsOutflows Cash sales to customers Receipts from customers who were allowed to buy on credit (trade debtors) Interest on bank and other balances Investment by shareholders Purchasing finished goods for re-sale Purchasing raw materials and other components needed for the manufacturing of the final product Paying salaries and wages and other operating expenses Paying taxes
The business uses cash to acquire resources (assets such as stocks) The resources are put to work and goods and services produced. These are then sold to customers Some customers pay in cash, but others ask for time to pay. Eventually they pay and these funds are used to settle any liabilities of the business. And so the cycle repeats
The cash needed to make the cycle above work effectively is known as working capital. Working capital is the cash needed to pay for the day to day operations of the business.
In other words, working capital is needed by the business to: Pay suppliers and other creditors Pay employees Pay for stocks Allow for customers who are allowed to buy now, but pay later (so-called “trade debtors”)
What is crucially important, therefore, is that a business actively manages working capital. It is the timing of cash flows which can be vital to the success, or otherwise, of the business. Just because a business is making a profit does not necessarily mean that there is cash coming into and out of the business.
It knows where its cash is tied up, spotting potential bottlenecks and acting to reduce their impact It can plan ahead with more confidence. Management are in better control of the business and can make informed decisions for future development and expansion It can identify surpluses which can be invested to earn interest