business awareness programme finance how can i fund my idea n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Business Awareness Programme Finance- ‘How can I fund my Idea’ PowerPoint Presentation
Download Presentation
Business Awareness Programme Finance- ‘How can I fund my Idea’

Loading in 2 Seconds...

play fullscreen
1 / 19

Business Awareness Programme Finance- ‘How can I fund my Idea’ - PowerPoint PPT Presentation


  • 90 Views
  • Uploaded on

Research and Enterprise. Business Awareness Programme Finance- ‘How can I fund my Idea’. Research and Enterprise. Starting in Business. Business Awareness Workshop “How can I fund my Idea”. Bernard Curren MCMI Research and Enterprise Knowledge & Innovation Manager.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Business Awareness Programme Finance- ‘How can I fund my Idea’


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
starting in business

Research and Enterprise

Starting in Business

Business Awareness

Workshop

“How can I fund my Idea”

Bernard Curren MCMI

Research and Enterprise

Knowledge & Innovation Manager

slide3

Research and Enterprise

Starting in Business Programme

Today’s topic Finance and Accounts

General introductions

Domestics

Outline of the starting in Business Awareness programme

Outline of today’s Finance and Accounts session

slide4

Research and Enterprise

Finance and Accounts

Start-up Costs

Personal Survival Budget

Cashflow Forecast

Profit and Loss Forecast

Break Even Analysis

Financial Management

Sources of Finance

slide5

Research and Enterprise

Start-up Costs

Business purchase

Franchise

Lease

Purchase raw materials

Stock

Purchase Fixed Assets

Re-vamp/redevelop Business Premises

Assist with Cash flow (Working Capital)

Insurances

slide6

Research and Enterprise

Further costs to consider

Rent in Advance, ingoing premium

Shop fitting, sign writing, Power & telephone connection

Vehicles, Road Fund licence, vehicle insurance

Advertising & Promotion

Legal and other fees

Probably some more!!!!!

slide7

Research and Enterprise

Start-up Costs

Be realistic when estimating these costs

Don’t turn a blind eye to them, these are genuine costs

You have to find the money, its often pre-start-up, (before trading commences)

slide8

Research and Enterprise

Start-up Costs

How this can be funded

Personal Finances

Loans

Re-mortgage

Overdraft

Family/Friends

Grants

Redundancy

  • Equity
  • Trade Credit
  • Leasing and Hiring
  • Small Firm Loan Guarantee
  • Prime
  • Royal British Legion
  • Princes Youth Trust
slide9

Research and Enterprise

Personal Survival Budget

This is the minimum take you have from the business

The Business Plan will need to sustain this overhead

The PSB links with the following documents

Business pricing structure

Cashflow Forecast

Marketing Plan

slide10

Research and Enterprise

Cashflow

Always remember…

Cash is King

More Businesses fail through lack of cashflow

--- than lack of no customers

slide11

Research and Enterprise

The Cashflow Forecast

This important document helps to:

Establish the amount of money required and when it is needed

Ensure that capital expenditure is controlled

Encourage efficient use of resources

Identify any shortfalls

Provides facts to help with decision-making

slide13

Research and Enterprise

The Profit & Loss Forecast

Purpose

To assess the profitability of a Business over a given period of time.

Format

Sales - Cost of Sales = Gross Profit

Gross Profit - Overheads = Net Profit / (Loss)

Method

Match sales income with the “Cost” of producing that income

slide14

Profit & Loss Forecasts cont

Spread the costs across the time to which they relate.

…. No, it has made an overall profit of £50 for the 5 months

slide15

Research and Enterprise

Cost of Sales

Produced from

Suppliers’ prices

Unit costs

Assumptions

Sales Forecast

Produced from

Market research

Marketing plan

Pricing policy

Assumptions

Overhead Budget

Produced from

Known costs

Anticipated

additional costs

Assumptions

Sales - Cost of Sales = Gross Profit

Gross Profit - Overheads = Net Profit / (Loss)

Preparing the P&L Forecast

slide16

Breakeven Chart

Pounds

150

Total Revenue

140

Profits

Breakeven Point

100

Total Cost

Losses

60

Total Variable Cost

Fixed Cost

20

30

10

20

Sales Volume

slide17

Research and Enterprise

Breakeven Examples

Level of sales

Fixed Cost = stall rent + wages

£12 + £12 = £24

Divided by Product price minus direct cost

£5 - £3 = £2

Sales to breakeven 24/2 = 12 Units

slide18

Research and Enterprise

Book-Keeping

Asset Register

Sales Record

Purchase Record

- Analysis book

- All in one accounts book

- Computer based system

Record every transaction and asset acquisition with receipts.

Keep personal finances separate.

Business Bank accounts

slide19

Research and Enterprise

Professional Support

Accountant

Familiar with small businesses

Recommend a book-keeping system

Clear about what they will charge you.

What’s the alternative!!

Solicitor

Strong commercial experience

Member of ‘Lawyers for Business’ scheme

Business Adviser

Business Link 0845 6009966