Financial Management Reinhard Werner & Mark Kwami.

Slides:

Advertisements

Similar presentations

Topic 2 :: Business Strategies Mrs. Schroeder

Advertisements

Financing the Business Chapter 36. How are they different? The easiest way to separate accounting and finance is to think of accounting as the past and.

Business Plan What? Overview & reflection of the business and its owner – thorough explanation of a business idea and how it will be executed Story of.

Lim Sei cK.  A business plan is a written document that describes a business, its objectives, its strategies, the market it is in and its financial.

The Business Plan.

1 Ch 7 Outline 1.Introduction 2.Financial Planning - The Sales Forecast - The Profit and Loss Statement - The Cash Flow Statement - The Balance Sheet.

Business plan overview (1)

Unit 4: Utilizing Financial Documents

Preparing Your Business Plan

Chapter Fifteen Finance: Balancing Risk and Return to Increase Profitability © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin.

Adapted from Smith and Kihlstrom (1999) Integration of Financial Statements: From Smith and Kihlstrom (1999 ) Assumptions Ending Balance Sheet Cash Flow.

03 July 2015Course Overview1 Energy Project Evaluation RES Course ESP606 Goal: To build up knowledge to so that participants will be able to assess if.

Introduction to Finance Spreadsheets David Scott.

Budgeting According to hotel management consultant Kirby Payne, ‘Managing expenses is among the most important things a manager does. (I never say it.

Zsuzsanna Fluck Broad MBA Business Plan Competition Preparatory Workshop What makes a business plan successful to raise venture capital funding?

 A written document that specifies how, where, and to whom a business plans to market its product(s) and/or brand(s).  A small business typically creates.

The Business Plan : Creating and Starting The Venture

Microloan Readiness Series Profit and Loss Today’s Agenda: Financials’ Role in Lending ABCs of P&L Tools for P&L Analysis What a lender looks for.

Entrepreneurship I Objective 3.03

Corporation -- A Global Business Simulation Presented by: John Doe Jane Doe Mary Jane.

Marketing Planning Chapter 2 Mrs. Newbegin. The Marketing Plan SWOT Analysis – An assessment that can foster the business’ success and what could make.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

6.1 Capon: Understanding Organisational Context 2nd edition © Pearson Education 2004 Understanding Organisational Context 2e Slides by Claire Capon Chapter.

How to Finance Your Business Start-Up Aizhan Tursunbayeva

ABOUT SCORE SCORE - Service Corps of Retired Executives SCORE - Service Corps of Retired Executives Volunteer group works with SBA as counselors to America’s.

Outline: Chapter 1 Introduction Importance of knowing the numbers Measuring success What is entrepreneurial financial management? Ethics and entrepreneurial.

By identifying specific financial goals, there’s a much better chance that clients will commit to invest.

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 14-1.

Business Planning It’s the Business… Aims of the Training The role of the Childcare Development Service Why you need a business plan The contents of.

School Finances for Finance Subcommittees School Councils.

ENTREPRENEURSHIP Chapter # 07 The Business Plan: Creating and Starting the Venture.

UNDERSTANDING FINANCIAL STATEMENTS. BASIC OBJECTIVES Accounting Basics Types of Financial Statements What do all these numbers mean?

Lim Sei cK.  Allocate the time you need to do certain parts of the Business Plan - Use calendar / Planner / Diary / Journal - Create a deadline.

New Venture Finance. First steps – how much $ does your new venture need? Must assemble pro forma financials to test assumptions (and convince investors.

The Balanced Scorecard

Eesti Pank Bank of Estonia Andres Sutt Estonian Economy - on the course for soft landing? October 25, 2007.

Analyzing Financial Statements

Entrepreneurship Business Plan Utilizing Financial Documents.

Financial Analysis. Financial Terms List: Finding Funding You need to consistently find funding: What are some ways of funding? Budget funds from profits.

Company Name Description of Plan Todays Date. 24/01/2016 Objectives Your target = £X per annum. Average order value £X– then you need to work out how.

$$ Entrepreneurial Finance, 4th Edition By Adelman and Marks PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ Chapter 2.

2.3 How do businesses survive?1 Must prepare a business plan/forward plan (set objectives) to ensure that: Meet customer needs and wants Manage costs effectively.

Lecture 27 Electronic Business (MGT-485). Recap – Lecture 26 E-Business Strategy: Implementation – Organizational Structure and e-Business The Boundary-less.

1 Budgeting Learning Objective: Understand the function of financial budgets. Awareness of the concept of a financial budget Pg

Chapter 12 – Single Investment Risk Analysis u Reasons for looking at risk from a single project prospective u lack comprehensive knowledge u of the rest.

HIGHER BUSINESS MANAGEMENT Finance. Content Sources of Finance Cash Budgeting  Analysis  Issues & Solutions Final Accounts  Trading Profit & Loss 

Develop a Marketing Plan.  Your marketing plan gives you a guide on which to base decisions and ensures that everyone is working together to achieve.

The Business Plan. Role of business planning To set the objectives for the business To ensure the business idea can be delivered profitably To raise finance.

Why Businesses Fail Can Name a Local Business that Failed for the Reasons Given? Record them. Lack of money Lack of business experience Poor management.

Finance Citi Funded Entrepreneurship Training Program UNIVERSITY OF DUBAI Dr. Zahi Yaseen.

Financial management Developing an understanding of the role of financial planning within business operation.

A STEP-BY-STEP APPROACH TO INVESTING. By identifying specific financial goals, there’s a much better chance that clients will commit to invest.

Planning & budgeting 25 th November, 2009 Eva Stevens Community Accounting Plus.

Analyzing Financial Statements

Business Plan Presentation

Accounting Thursday September 29th, 2016.

© Inge Hill, Start Up, Palgrave 2015

Global Entrepreneurship and Small Business Management

Pricing strategy for each source of revenue

Strategic Role of CFO Marlon Hightower eLSFOO CFO

Telling Stories that help drive decisions

Unit 6 Finance Knowledge Organiser 6 The Role of the Finance Function

Financial planning.

Zainul Muchlas, SE, MM STIE - MCE

Global Entrepreneurship and Small Business Management

Finance Planning & Strategy.

Writing a Business Plan

© 2011 South-Western | Cengage Learning Global Entrepreneurship and Small Business Management Entrepreneurial Enterprises The Business Plan.

Business Financial Statements

Presentation transcript:

Financial Management Reinhard Werner & Mark Kwami

What is the current financial position of your business? What is your monthly/annual turnover? Is your business growing? Stable? or contracting?

What is the current financial position of your business? Is your business PROFITABLE? Profitability is more important than turnover or growth! But how do you become profitable?

How do you determine if your business is profitable?

Revenue (Income) minus Expenses (Costs) = Profits

It is important that you monitor the profitability of your business.

Tools: Simple balance sheet to monitor your monthly performance ? List all your Sales List all your Expenses (Sales-Expenses=Profits)

Tools: Simple balance sheet to monitor your monthly performance ? Sample of excel based Performance Sheet

Chart showing income against costs

Chart showing income 2010 compared to 2011

Chart showing revenue generated in different markets (Retail, Wholesale, Exports)

Role of accountants in your business Importance of having a good accountant Accountants are like the Doctor in your business! Give early Alarm if things are not going well. Translate the jungle of figures into simple comprehensive information on the financial health of your business. Probably the most important person in your business!

Role of accountants in your business No need to have full time accountant Part time should be enough for most businesses Make sure to brief them and tell them what you want from them! Make them generate simple monthly reports (simple charts and tables) that allow you to see the health of your business at a glance. Instruct them to make you aware of unusual developments

CBI Indicators Monitoring Sheet!

Importance of setting targets Setting targets makes you more focused! Stops you from operating under the principle of “HOPE!”or “Wait and See”!

Setting targets What is your forecasted turnover for this year? What % growth have you forecast for this year? If yes, How are you going to reach your targets? What do you need to invest to reach these targets?

Reviewing and evaluating your performance Need to monitor and evaluate your targets! Did you succeed in achieving your targets? YES? or NO? “If yes! Why? What were the reasons for your success? Try to build on these in future. “If not! Why? What went wrong? What can you do to avoid repeating these in future?

Importance of strategic planning What is a Business Plan? Why do companies need a business plan?

Business Plan Where do you want your business to be in 1 year from now? Where do you want your business to be in 5 years from now? What do you need to do to achieve these goals? How are you going to finance these goals? What will be the return on your investment if these goals are achieved?

Now? Where am I today? Where? Where do I want to be in 5 years? Business Plan How do I get there ? Why do I want to get there? (opportunities, objectives) What do I need to do to get there? What are the risks involved? (how do I safe guard myself from these risks?) How much do I need to invest? How?

Why do you need a Business Plan ? To get loans from a bank? To attract investors? To attract government or donor support funding (grants, soft loans, business development support etc.)?

Business Plan Planning the way forward for your business can be complicated A Business Plan is a “Road-Map” which helps you navigate your business so as to reach your goals It helps you to remain Focused and prevents you from getting off-track

Why do you need a Business Plan ?..... A business plan is not just important for attracting investment into your business! it is your personal “Road-Map” to a successful implementation of your business idea. * You need to review your business plan in regular intervals; -are you still on track? -Have you achieved your goals? -If not, why & What went wrong? -What do you need to do better? -Is there a need to adjust your business plan to avoid such mistakes in the future?

Summary: Important to better understand the financial side of your business Important to understand the process of costing and pricing Profitability Important to have an overview of income and costs Setting financial targets Analysing financial performance

Summary: Get your accountants to work for you! Be strategic

But remember Your business is not run in isolation? There are many outside factors that have an influence on your business! It is important that you show interest in those factors that influence your business. Keep your eyes open and keep updated on domestic and global developments. This can help you anticipate effects on your business and allow you to take the necessary actions. Summary:

Thank You!