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Business Planning/Cashflow Forecast - Coggle Diagram
Business Planning/Cashflow Forecast
Define Business Planning
Sources of Finance
Short Term ( within one year)
Internal- 1.Firms own Cash
External- 1 Trade creditors 2. Bank Overdraft 3. Accrued expenses (expenses due) 4. Factoring of Debtors 5. Credit cards.
Medium Term (between one and five Years)
External- Bank Term Loan, easing, Hire Purchase
Long Term (Over five years)
Internal- Issue of Ordinary Shares, Retained Earnings.
External- Sale and Leaseback, Long Term loans, Government & EU grants, Issue of Debentures.
Short, Medium and long term needs.
Factors that Influence the source of Finance.
The Matching Principle
The main headings in a Business Plan.
Section 2: Key Personnel
Section5: Financial Requirements
Section 1: The Business
Section 3: Product/Service and the Market Place
Section 4: Fixed Assets of the Business or Sales Promotion
Fill out Sample Business Plan
Define Cash Flow Forecast
Fixed costs and Variable costs
Reasons for Preparing a Cash flow Forecast/Statement
Summary of Cash Flows
Business- Inflows/ Receipts- Cash Sales, Payments from Debtors, Interest received, Sale of Fixed Assets, Owners capital, Grants, Loans-Borrowings.
Business Outflows/Payments- Cash Purchases, Payments to Creditors, Buying Fixed Assets- Buildings, Vehicles etc. Day to Day Expenses: Wages, L&H, Paying taxes.
How to Resolve Net Cash Deficits
Steps A Firm Can Take to Improve Its Cash Flow
Prepare A Cash Flow Forecast