Business Planning Flashcards
• Why is a budget necessary?
Framework for business and its finances – gives an anticipated target of where the senior members of the business assume performance to be by the end of the fiscal period. You can do this by combining past and present trends. A budget provides a detailed view of assets, realistic revenue expectations, and how those balance against your anticipated expenses.
• How do you compare performance?
You can compare with forecasts, benchmarks or historical performance.
Benchmark can be industry wide, sector specific or even for internal performance – it is made up of the historical performance and the average performance of the criteria.
• Give an example of business objectives? Are they always financial?
No, a business objective could be to improve employee’s satisfaction. This could be done with a questionnaire and allow senior personnel to identify key improvement areas. This could also be done with training and making the workforce more inclusive.
• What should be included in a business plan?
Executive summary, business objective, bios of key management, IP, financial reports, budget, business plan, product, marketing plan
• What should be included in a term sheet?
Terms of engagement set out the basic facts of your instruction so that there is no confusion about what you have been asked to do. They also define the scope and depth of the service you will provide, and in doing so set boundaries to your liability and also the fee and how they are calculated. And Complaints handling procedure.
• What is expected fee generation?
In a number of our mandates, we are reimbursed for a percentage of debt raised or capital raised.
• Do clear terms of engagement lead to less conflicts?
Yes, clear terms of engagement that are not open to mi-interpretation mean that if issues do arise they are solvable.
• How do you record TOE
In dynamo for equity placement and on the drive – any complaints made to CHO
• What is expected fee generation? Expected forecast?
In a number of our mandates, we are reimbursed for a percentage of debt raised or capital raised. It allow for progress to be tracked against the budget. It can include completed and invoiced work as well as forecasted income.
