...Plan Small Business Finances Assessment 1: Simulated Workplace Scenario: Introduction: For the case of this task, I will be simulating that I have invested my life savings to start a small business, that of a bakery. Having had previous skills in this industry, and already locating an ideal position with minimal competition, I will now undertake a number of financial projections for the business, with the end goal being to obtain finance to help with the start-up costs. The document will cover aspects as follows: Part A: • All costs, fixed and variable, relating to the start-up and general running of the business. • Prices of goods based off of costs and profit margin. • Break even sales points. • Pricing strategies related to market conditions. • Projected profit statement. Part B: • Set profit targets/goals. • Identify working capital requirements. • Identify asset requirements and asset management strategies. • Prepare cash flow projections. • Identify capital investment requirements. • Select budget targets and monitor financial performance. Part C: • Start-up and ongoing financial requirements • Sources of potential finance. • Cost of securing finance and strategies in order to obtain it. Part A: Research: The general running of the business will be done by myself and 2 full time employees, from a single location, operating 6 days a week, Monday through Saturday. The initial set up costs for the location, including 2 months of upfront rent and a...
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...Analysis of Financial Problem for Chinese Small to Medium Sized Companies Abstract In the recent years, small to medium sized companies (SMEs) play an important role in most countries over the world. It has been a vital policy issue for governments to deal with these companies to increase development of economy. The financial difficulties faced by SMEs have restricted SMEs’ survival and development. SMEs exist a series of financial problems. This article focus on how to obtain effective financial source and dealing with the difficulties in raising finance for Chinese SMEs. Key words: Small and medium-sized Companies (SMEs); Financing. Introduction SMEs are the necessary power for economy growth. As Beck and Demirguc-Kunt (2005, p2932) said that there was robust partial connection between the importance of SMEs in manufacturing and economic development. According to Ayyagari (2007), formal SMEs contribute to 50% of GDP on average in developing countries and World Bank views SMEs as a core element in developing economy and employment. In China, the number of registered SMEs exceeds 40 million, accounting for more than 99 per cent of enterprises. As a private sector, SME has become a driving force since the economy began to recover in 1978 (Fan, 2007). And it makes up more than 70 percept of the GDP. According to Brookfield, SMEs can be regarded as unquoted small businesses and a medium for self-employment of the owners that are organized by few individuals, typically a family...
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...Finance and Business Transcript Speakers: Narrator, Host, Paul C. Clendening NARRATOR: On the subject of banking and finance, we hear Paul C. Clendening, a banker from Kansas City, who is active locally and nationally with Robert Morris Associates, National Association of Bank Loan and Credit Officers. HOST: What does the term finance mean in reference to a small business person? PAUL C. CLENDENING: The term finance refers to the dynamic measurement of a company’s health and progress. Business owners are given accounting information that historically report what a company’s sales have been, how its assets and its liabilities are structured, etc. But the dynamic interaction of those assets, liabilities, and income figures really relate to the health of the company itself. The primary way to utilize financial information is to look at a trend analysis and a ratio analysis. HOST: What about liquidity. What does that mean? PAUL C. CLENDENING: Liquidity is a very important day-to-day measurement for a business owner and really a key tool to use in the management of that business. As an example, one of the most common ratios of liquidity is the current ratio. The current ratio is defined as the total current assets of the company less the current liabilities. Now what that should show is a margin of short-term assets in excess of the short-term liabilities. The benefit of that to the small business owner of manager is that it provides a working capital cushion that...
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...gives a simplified view on how a SME owner who invested his loan into the purchase of imported goods increases consumption and GDP. This example does not cover the significant multiplier effect in the wider economy, through the increased economic activity of employees and suppliers. SME growth also influences GDP indirectly, through increased innovation and macro-economic flexibility of the overall economy. Every year new SMEs enter the market, representing 5 to 20% of the existing number of firms. Smaller firms are often the most dynamic and innovative, and can be a test ground for new business ideas. Although...
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...substitution to small scale industries with immense potentials for developing domestic linkages for rapid, sustainable industrial development. Apart from their potential for ensuring a self reliant industrialization, in terms of ability to rely largely on local raw materials, small scale enterprises are also in a better position to boost employ raw materials, small and medium enterprise, are also in a better position to boost employment, guarantee a more even distribution of industrial development in the country, including the rural areas, and facilitate the growth of non-oil exports. In Nigeria, the definition of small and medium enterprises also varies from time to time and according to institutions, for instance, the Central Bank of Nigeria’s (CBN) monetary policy circular No:27 of 1988 define small scale enterprises (excluding general commerce) as enterprises in which total investment (including land and working capital) did not exceed #500,000 and or the annual turn-over did not exceed #5.0 million. Medium enterprise (excluding general commerce) as enterprises in which total investment and not exceed #1,000,0000 (1 million) and the annual turnover did not exceed #1.2 million. Small scale enterprises is one of the modern strategies underdeveloped countries are employing to break into the “league” of developed countries. Fasua (2006:85) categorized business that fall under small scale as follows firewood supply, plantain production, restaurant services, small scale poultry raising...
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...AN ASSESSMENT OF FACTORS INFLUENCING PERFORMANCE OF SMALL SCALE ENTERPRISES IN UGANDA: A CASE STUDY OF KITGUM TOWN COUNCIL BY AYOO ESTER ESO9BO5/028 DISSERTATION SUBMMITTED TO FACULTY OF BUSINESS AND ADMINISTRATION IN PARTIAL FULFILLMENT OF THE AWARD OF A BACHELORS DEGREE IN BUSINESS ADMINISTRATION OF UGANDA CHRISTIAN UNIVERSITY May 2012 DECLARATION I Ayoo Ester do solemnly declare to the best of my knowledge and ability that this Dissertation was prepared by me and never has it been presented to Uganda Christian University or any other institution of higher learning for the award of a degree. Signature………………………….Date………………… AYOO ESTER ESO9BO5/O28 i APPROVAL This research report has been submitted for examination with my approval as the candidate’s supervisor. Sign................................... Mrs Nsiyona Elsie The University supervisor Date.................... ii DEDICATION I dedicate my Research proposal to my beloved Daddy Mr. ORYEMA HENRY MILLY, my Uncle Mr. ONEKALIT KENNTH OBITO, My Mum, my dear friends Brenda, Sharon, Beatrice, Jackie, Dick, Gilbert, Julius, Allan, Moreen, Alex, Odong and also my sisters and brothers for their love and support, who in one way or the other supported me morally, physically, materially and financially in ensuring that my future is a success. May GOD bless...
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...Small Business Management | | | | Table of Contents Question 1: 3 Full Absorption Costing: 3 Direct Costing: 3 Question 4: 6 ACCION USA Small Business Loans: 7 Mississippi Capital Access Loan Program 7 Ohio Mini-Loan Guarantee Program 8 Iowa Target Small Business Assistance Program: 9 Montana Indian Equity Fund: 9 Question 3: 9 Bibliography 12 Question 1: In the field of accounting, there are two different ways of allocating production and other costs to products and services. Full Absorption Costing: It is a managerial accounting cost method of expensing all the costs to products and services. Under this approach, products and services are charged with all the prime costs as well as fixed overheads. All the fixed manufacturing overheads are divided amongst products and services based on number of units of products produced, number of units of labor used or amount of administrative expenses incurred on respective products/services. Generally Accepted Accounting Principles (GAAP) requires it for external reporting purposes. It helps in calculation of taxes and generating sales reports. It is an important technique to determine whether retail prices of a company reflect its full absorption costs. It is also important for such companies, which do not have deep pockets, and allocating all the overhead costs on products/services is extremely necessary to determine cost of their products. Direct Costing: It is a technique more suitable for internal...
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...conducted electronically on the Internet. There are many arguments that explain if established brands are best placed to make the most of the growth opportunities presented by e-commerce such as having the access to finance. However, some arguments suggest that it is not just established brands that can take advantage of the growth opportunities because of other e-commerce platforms such as Just Eat. Firstly, one reason why established brands have a head start in order to make the most out of the growth opportunities presented by e-commerce is because they have the access to the finance available to involve themselves in the e-commerce world. These established brands have the capital to start up, develop or even improve their own e-commerce platforms. These firms, for example can choose to improve their distribution and logistics network by investing in more capital and high skilled workers. This shows that the business is able to increase the quality of their delivery times and returns policy. This would lead to the satisfaction of customers as expectations for delivery times as well as returns have been more demanding, for example, having free returns rather than having to pay to send it back. An improved distribution and logistics network could lead to the business being able to absorb the costs if a customer wanted to return the product. This suggests that customers are more likely to make repeat purchases because there is no cost of returning the product if it doesn’t suit...
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...Business is shaped and influenced by economic developments as well as consumer incentives. The world of business is constantly evolving. Showcasing the most up-to-date information on emerging entrepreneurs, business ventures and retail technology, economic and political shifts and consumer lifestyles. In 2015, the business sector has seen a great junction of enterprise and marketplace by way of collaboration. Knowledge engineering and new leadership approaches are at the forefront of trends in business intelligence and human capital. Some of these business trends are sources of good business opportunities; others are trends we need to incorporate into our small business practices to stay competitive and keep or grow our market share. (Business Trends That Will Drive Success, 2015) Rise of the Phone App This business trend is consumer-driven and closely related to mobile computing. Business-wise, phone apps are replacing everything from mileage log books through credit card readers. An iPhone app called Square, for example, lets you accept credit card payments by plugging a card reader into your iPhone. Business can benefit from this business trend by using phone apps to eliminate some of your other office equipment and supplies. You might also benefit by creating and selling your own phone app. The Amazon App is an (in)famous example of a shopping app; it scans bar codes and comparison shops, letting customers know if they can get a better deal through Amazon's website or not...
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...Zachary Smith Business Plan Executive SummaryPC Repair will provide computer and technical consulting (repairs, training, networking and upgrade service) to local small businesses as well as home PC users. The company will focus on marketing, responsiveness, quality, and creating and retaining customer relations. PC Repair will at first be a home office start-up, utilizing one studio room in the owner's home. In the third month of our plan, we will move into a leased office space and hire a second technician. As sales increase, we will hire additional personnel. The MarketThe very nature of the computing industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues. In town, the majority of potential customers are dissatisfied with existing options, creating an attractive niche for an innovative start-up. Small business PC users will provide the majority of our business revenue PC Repair has decided to focus mainly on the small business market, as these customers typically don't have a full-time IT person, but have full-time IT needs. PC Repair will offer an affordable, on-demand service for these customers. We can also offer maintenance agreements that generate additional monthly income. For our residential customers, we will offer a very affordable and helpful service with a very flexible schedule to meet their needs. Objectives To provide the best...
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...ASSIGNMENT Submitted to: Mohammad A. Arafat Sr. Lecturer SB, IUB. Submitted by: Farzana Rubaya Id: 1230580 MGT (405) Sec: 01 Introduction : Small and medium-sized enterprises sometimes also called small and medium enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel numbers fall below certain limits. These are the most common businesses found across most of the world’s economies. The World Bank Review on Small Business Activities establishes the commitment of the World Bank Group to the development of the small and medium enterprise (SME) sector as a core element in its strategy to foster economic growth, employment and poverty alleviation. In the context of Bangladesh, the development of Small and Medium Enterprises (SMEs) can be considered as a vital instrument for poverty alleviation and ensure the rapid industrialization. So we can say that the role of Small and Medium Enterprises (SMEs) is indispensable for overall economic development of a country particularly for developing countries like Bangladesh. It has drawn a lot of interest among policy makers, academics, businessmen and people in general. Government of Bangladesh has highlighted the importance of SME in the Industrial Policy-2005. SMEs have been identified by the Ministry of Industries as a ‘thrust sector’. As the SME sector is labor intensive, it can create more employment opportunities. For this reason government of Bangladesh...
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...Richard M. Knapp University of Phoenix Online Information Literacy in Managing Start-ups Richard M. Knapp University of Phoenix Online Information Literacy in Managing Start-ups In her article printed in the Journal of Business & Finance Librarianship, Carol Simon reported Peter Drucker as he spoke of information literacy, “to be information literate, you begin with learning what it is you need to know”. To this, one might add, “, “to be information literate, you begin with learning what it is you need to know” now (Simon, 2009, p. 248). Time sensitivity has become increasingly important in this fast-paced, information-based economy. Like any other CEO of a large corporation, leaders of smaller, entrepreneurial ventures must make a myriad of decisions each day based on the information at their disposal. Unlike their counterparts, however, small business leaders often have more limited resources at their disposal. In a business with fewer than 100, 20, or even 10 employees, there is no time or money to create reports with detailed financial analysis of each available alternative. There is no research department and no board of directors, unless of course pillow talk with the wife counts for professional advice. With most small businesses, of necessity, judgment calls must be made quickly and are, consequently, based on limited, if any, substantive research. Moral Hazard Left to his own limited resources and pressed for time, the decision-maker who is...
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...CHAPTER ONE INTRODUCTION 1.1 THE PROBLEM AND ITS SETTING Every industry operates within two sets of constraints. Internal constraints are those problems within the organization and over which the enterprise has reasonable amount of control. Personnel problem, capacity utilization and the techniques or process of production are some of such factors. External factors could pose formidable problems to an enterprise. The problems are made more severe by the fact that these problems are caused by factors outside the competence of a given enterprise to control. Examples of such factors are government regulation, traditional or cultural values etc. The bakery industry in Nigeria has been a victim of externally imposed constraint. Hitherto, bakers depended on local millers who produced their vital raw materials, flour from imported wheat. Government banned the importation of wheat and wheat product in 1986, thereby, sending shock waves to this very well established and expanding industry. Wheat products has started to consume an unacceptable amount of the nation’s foreign exchange as the table 1.1.1 below clearly demonstrates, as well as figure 1.1.1 in page 3. Table 1.1.1 Foreign Exchange Spent on Wheat and Food Import 1981 – 1985 Import 1981 1982 1983 1984 1985 N,000 N,000 N,000 N,000 N,000 Total food 1,820,215 1,642,245 1,296,714 843,246 946,567 Wheat 159,422 79,629 255,717 243,067 327,870 C/o of total 9% 5% 20% 29% 35%` Source: Federal Office of Statistics...
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...CHAPTER ONE INTRODUCTION 1.1 THE PROBLEM AND ITS SETTING Every industry operates within two sets of constraints. Internal constraints are those problems within the organization and over which the enterprise has reasonable amount of control. Personnel problem, capacity utilization and the techniques or process of production are some of such factors. External factors could pose formidable problems to an enterprise. The problems are made more severe by the fact that these problems are caused by factors outside the competence of a given enterprise to control. Examples of such factors are government regulation, traditional or cultural values etc. The bakery industry in Nigeria has been a victim of externally imposed constraint. Hitherto, bakers depended on local millers who produced their vital raw materials, flour from imported wheat. Government banned the importation of wheat and wheat product in 1986, thereby, sending shock waves to this very well established and expanding industry. Wheat products has started to consume an unacceptable amount of the nation’s foreign exchange as the table 1.1.1 below clearly demonstrates, as well as figure 1.1.1 in page 3. Table 1.1.1 Foreign Exchange Spent on Wheat and Food Import 1981 – 1985 Import 1981 1982 1983 1984 1985 N,000 N,000 N,000 N,000 N,000 Total food 1,820,215 1,642,245 1,296,714 843,246 946,567 Wheat 159,422 79,629 255,717 243,067 327,870 C/o of total 9% 5% 20% 29% 35%` Source: Federal Office of Statistics...
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...CHAPTER ONE INTRODUCTION 1.1 THE PROBLEM AND ITS SETTING Every industry operates within two sets of constraints. Internal constraints are those problems within the organization and over which the enterprise has reasonable amount of control. Personnel problem, capacity utilization and the techniques or process of production are some of such factors. External factors could pose formidable problems to an enterprise. The problems are made more severe by the fact that these problems are caused by factors outside the competence of a given enterprise to control. Examples of such factors are government regulation, traditional or cultural values etc. The bakery industry in Nigeria has been a victim of externally imposed constraint. Hitherto, bakers depended on local millers who produced their vital raw materials, flour from imported wheat. Government banned the importation of wheat and wheat product in 1986, thereby, sending shock waves to this very well established and expanding industry. Wheat products has started to consume an unacceptable amount of the nation’s foreign exchange as the table 1.1.1 below clearly demonstrates, as well as figure 1.1.1 in page 3. Table 1.1.1 Foreign Exchange Spent on Wheat and Food Import 1981 – 1985 Import 1981 1982 1983 1984 1985 N,000 N,000 N,000 N,000 N,000 Total food 1,820,215 1,642,245 1,296,714 843,246 946,567 Wheat 159,422 79,629 255,717 243,067 327,870 C/o of total 9% 5% 20% 29% 35%` Source: Federal Office of...
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