1. Mrs. Alexander-Harrison Entrepreneurship
Financial Plan
Mrs. Alexander-Harrison
Entrepreneurship

2. Financial Statements Common start-up costs Equipment and supplies
A list of start-up costs, one time expenses paid to establish a business
Common start-up costs
Equipment and supplies
Furniture and fixtures
Vehicles
Remodeling expenses
Legal and accounting fees
Licensing fees

3. Cash Flow Statement Revenue – the amount of cash coming in
A cash flow statement describes how much cash comes in and goes out of a business
Revenue – the amount of cash coming in
Expenses – the amount of cash going out
Operating expenses – monthly expenses incurred by a business

4. Income Statement
An income statement indicates how much money a business earns or loses in a particular period
An income statement is also known as a profit and loss statement
An income statement shows revenues not yet collected and expenses not yet paid

6. Assets = Liabilities + Owner’s Equity
Balance Sheet
Balance Sheet -Shows what a business owns, owes, and how much it’s worth at a point in time
Based on the accounting equation
Assets = Liabilities + Owner’s Equity
Assets are items of value owned by the business such as
Cash
Equipment
Inventory

7. Balance Sheet
Liabilities are items that the business owes to others, such as
Loans
Outstanding invoices
Owner’s equity is the value of all assets less all liabilities

9. Assets = Liabilities + Owner’s Equity
Accounting Equation
The balance sheet is base on an equation called the accounting equation
Assets = Liabilities + Owner’s Equity

10. Supply & Demand Supply Demand
Is how much of a good or service a producer is willing to produce at different prices.
Demand
Is an individual’s need or desire for a product or service at a given price

11. Equilibrium Price & Quantity
Equilibrium price and quantity is the price at which supply equals demand

12. Fixed Costs
Fixed costs are costs that must be paid regardless of how much of a good or service is produced.
Examples of fixed costs include:
Rent
Insurance fees
Interest on loans

13. Variable Costs
Variable costs are costs that go up and down depending on the quantity of the good or service produced.
Examples of variable costs include:
Raw materials
Labor
Overhead directly related to producing goods or services.

14. Financing For Your Business
Bank Loans
Secured—guaranteed with collateral
Unsecured—no collateral needed
Equity Capital
Personal financing
Friends and family
Venture capitalists

15. Financing For Your Business
SBA Loans
Other Loan Sources
Small Business Investment Companies
Minority Enterprise Small Business Investment Companies
Department of Housing and Urban Development (HUD)
The Economic Development Administration
State Governments
Local and Municipal Goverments

16. Shoplifting To prevent shoplifting:
Instruct your employees to watch for customers who appear suspicious
Post signs indicating that you prosecute shoplifters
Ask customers to leave their bags behind the counter
Install electronic devices, such as video cameras, electronic merchandise tags, and point-of-exit sensors that detect shoplifters

17. Shoplifting To prevent employee theft:
Prevent dishonest employees from joining the company
Install surveillance systems
Establish a tough company policy regarding employee theft
Be on the lookout

18. Types of Insurance Casualty Insurance Life Insurance
Property Insurance
Insures all business property against normal risks, including fire, robbery, and storm damage.
Casualty Insurance
Protects a business against lawsuits
Life Insurance
Pays out in the event that the holder of the policy dies

19. Types of Insurance Other Insurance
Workers’ Compensation
Consists of payments to workers who are injured on the job
Other Insurance
Includes coverage for floods, business interruption, crime and renter’s needs