Business Plan And Cash Flow Forecast Flashcards
Business plan contents
- company details
- company product/service
- market research
- advertising/promotion
- discounts
- financial details
What company details are given in the business plan
- name and address of company
- name and qualifications of chief people
- brief history of the company
- summary of overall aims
What company product/service description is given in the business plan?
- description of product/service
- price charged for product/service
- raw materials necessary to make product/service
What is meant by market research in the business plan?
- target market
- competition
- size of target market
What is meant by financial details in the business document?
- cash flow forecast
- future expected expenditure and income
- grants available
- investment required
- the company’s creditors
- name of assets
Cash flow forecast
- a business’ estimate of the future timing and source of income and the future timing and nature of it’s expenditure
- the business’ budget
Fixed costs
-costs that do not change as the volume of goods produced or sold gets bigger or smaller (rents, loans)
Variable costs
Costs that change as the volume of goods produced or sold gets bigger or smaller (eg. Electricity, mobile phone bill)
Cash Inflow
-capital usually used for starting up a business, getting equipment, sales, loads and personal finance
Cash outflow
Capital spent on raw materials equipment etc. Loan repayments and wages
Difference between an ACB and a cash flow forecast
- cash flow predicts, ACB records
- CF is over 6 months, ACB is over 1 month
Business plan
A formal document that
- describes the present status of the business
- identifies clear goals for it’s future development
- lays down methods by which the goals are to be achieved
