Finance Flashcards
Business plan
Formal document, describes the present status of business
Finances
Help manage cash flow
-Easiest way of obtaining is a loan (need bank plan)
Target (business plan)
targets to be achieved by the business
Methods (business plan)
How to achieve goals
Finances (business plan)
identifies the finances required by the company (cash flow forecasting)
Information (business plan)
provides important information required by banks/future shareholders
Business plan contents
Company details Company’s Product / Service Market Research Advertising / Sales / Promotion Financial Details / Finance Directors signatures
Company details
Name/ address of company
Names/qualifications of Key People
Summary of overall aims
History of company
Company product/ service
Description of the product sold / service offered
Price for product / service
Cost of raw materials
Market research
Target Market – who product is aimed at
Size of Target Market – how many people
Competition – who competitors are, what price they charge
Advertising/ promotion
Advertising
•Newspapers, internet, billboards etc
Discounts / Promotion
•Buy one get one free (BOGOF), money off
Financial details
Cash flow forecast How much they will spend/receive in future Value of company assets Value of company creditors (money owed) Grants available Share investment required
