1. Budget and Finance Part I
BCS-BE-26: The student explains the process in developing a budget.
BCS-BE-27: The student analyzes the financial statements of a business and utilizes those statements to make important business decisions.
BCS-BE-28: The student identifies financial aspects associated with opening a business.
BCS-BE-29: The student completes records which are fundamental for any business.

2. The Purpose of the Financial Plan
A _______can be used to attract investors.
financial plan
a set of documents that outlines the ______financial facts about a new venture
Financial plans project the ______of a new business or a project at an existing firm.

3. Characteristics of an Effective Financial Plan
Graphic Organizer
Characteristics of an Effective Financial Plan
Identifies the assets that need to be ______
Describes the amount of _____ a business needs to start and operate
Describes the ______the business will incur and explains how a business will cover its expenses
Describes how the business will _____ and report financial records
Forecasts finances to project future _______
Explains how the _____ will acquire money to grow or expand

4. Identifying Business Assets
_____ about assets might show that buying used _____ instead of new ones, or renting them, would be best.
Examples of Assets
Cash
______
Buildings
______
Inventory
______

5. Determining Needed Capital
A financial plan ____that amount of capital a business will ___.
capital
money ____by investors, banks, or owners of a business

6. Determining Needed Capital
Start-up capital is the _____used to pay for the various ____and expenses of a new venture or _____.
A start-up may have a hard time ____investors because it has no track record.

7. Describing Start-Up and Operating Expenses
Start-up expenses often ____a large amount of ____.

8. Examples of Start-Up Expenses Examples of Operating Expenses
Graphic Organizer
Examples of Start-Up Expenses
Examples of Operating Expenses
Business ______
Remodeling costs
Security _____
Advertising
_____
Supplies
Legal _______
Licenses
_____
Rent
______bills
Delivery charges
Bank _______

9. Describing Financial Records Management
A financial _____describes who will maintain the financial records and why.
A financial plan also describes any ____agreements that influence the way records are kept.
Special _____software is available to businesses.

10. Forecasting Future Finances
A financial forecast should be _____in its outlook.
financial forecast
an estimate of a business’s _____outlook for each of the next few years
A forecast should consider changes in the _____.

11. Describing Growth Financing
Planned ___can be rewarding, while unplanned growth can be _____.
Investors want to know that a ______has thoughtfully developed strategies to finance controlled growth.

12. A budget helps guide a _____future.
Budgets
A budget helps guide a _____future.
budget
a plan specifying how _____will be used or spent during a particular period

13. Graphic Organizer Three Types of Budgets _____ Budget _____ Budget
A plan for your income and expenses from the time you start a business to estimated time it will make a profit
A plan for the actual money the business owner spends on a daily, weekly, or monthly basis
A plan for the amount expected to be spent and earned over a given period of time, usually six months or a year