Year 10 Business Studies Mr Ahern

We will start by just doing some basic cash-flow exercises so that I can

assess what you know, or have remembered

All of the money that would come into the business is known as inflow The TAP

All of the money that would go out of the business is known as outflow The Drain

Set out your work in the table on the next slide.

We will do a cash flow forecast for 6 months from January to June. use the following table to store all of the inflow and outflow that we have seen so far.

(£) Jan Feb Mar Apr May JuneTotal Receipts

Total Payments

Cash flow

Opening Bank Balance

Closing bank balance

Key Term: Opening balance is the amount of cash in the business at the start of each month (Water in the bath)

(£) Jan Feb Mar Apr May JuneTotal Receipts

Total Payments

Cash flow

Opening Bank Balance

Closing bank balance

Key Term: Closing Balance becomes the ??????? balance at the start of the next month (Water left over in the bath)

(£) Jan Feb Mar Apr May JuneTotal Receipts

Total Payments

Cash flow

Opening Bank Balance

Closing bank balance

Key Term: Closing balance is the amount of cash in the business at the end of each month. (water left in the bath when u get out)

The closing balance is calculated by adding the net cash flow onto the opening balance

Closing balance = opening balance + cash flow

NOTE THAT THE OPENING BALANCE IS THE SAME AS THE CLOSING BALANCE OF THE PREVIOUS MONTH

(£) Jan Feb Mar Apr May JuneTotal Receipts

Total Payments

Cash flow

Opening Bank Balance

Closing bank balance

As a class we will complete this together.

(£) Jan Feb Mar Apr May JuneReceipts 800 1000 700 700 500 400

Payments 600 700 800 800 700 700

Net Cash flow

Opening Balance

0

Closing Balance

NOTE THAT THE OPENING BALANCE IS THE SAME AS THE CLOSING BALANCE OF THE PREVIOUS MONTH

Complete the cash flow forecast for Shelly Isfit

(£) Jan Feb Mar Apr May JuneReceipts 800 1000 700 700 500 400

Payments 600 700 800 800 700 700

Net Cash flow 200 300 -100 -100 -200 -300

Opening Balance

0 200 500 400 300 100

Closing Balance

200 500 400 300 100 -200

NOTE THAT THE OPENING BALANCE IS THE SAME AS THE CLOSING BALANCE OF THE PREVIOUS MONTH

Mr Ahern AS Business Studies

To know what a business plan is

Know the content of a business plan

Know who a business plan is for

If you don’t plan where you are going………

How do you know if you have got there?

A document that describes a business

It should include aims and objectives

The market which the business is in

The businesses financial forecast

To get external finance or funding.

To be used within the business as a means of measuring actual performance to predicted figures.

S – M – A – R – T –

specific measurable achievable realistic timed

ARE YOU SMART?

A plan should last 2 yearsAfter that time new targets need to

be set.Why?Plans can be changed Not the entire plan but just parts of it

may be changed for different audiences

The business plan should give details on how the business will be developed.

(If you don’t know where you are going, how do you know if you have got there).

When this will happen

And who is going to be responsible

Clearly how money will be managed

Cash flow forecastMoney needed to start upWhere the money will come from

Banks

External investors including venture capitalistsPotential buyers of the businessPotential partners

When the business was established and any progress made, or when it intends to start

Type of business / market sectorRelevant historyLegal structure Sole Trader,

Partnership, franchise, LTD etc…

What makes the product / service different

What benefits they offer

Clear indication of the type of customer

How the business intends on developing products or services (possibly the range)

Patents, trademark, copyright, designs

SizeCurrent issuesThe target customer baseCompetition Future changes likely to effect the

market place (3D TV)

How will the business position its products / services in the marketplace

How the business will attract new customers?

Pricing policy, discounts for bulk purchasing etc..

How will the business promote its products and services

How will products / services reach customers,

InternetFace-to-faceWholesale Retailers etc..

how will they be distributed?

Marketing

Production Finance

To know what a business plan is

Know the content of a business plan

Know who a business plan is for