Financial Plan

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Financial Plan

• Ms. Alexander
• Entrepreneurship

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Financial Statements

• A list of start-up costs, one time expenses paid
  to establish a business

• Common start-up costs
• Equipment and supplies
• Furniture and fixtures
• Vehicles
• Remodeling expenses
• Legal and accounting fees
• Licensing fees

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Cash Flow Statement

• A cash flow statement describes how much cash
  comes in and goes out of a business

• Revenue the amount of cash coming in

• Expenses the amount of cash going out

• Operating expenses monthly expenses incurred by
  a business

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Income Statement

• An income statement indicates how much money a
  business earns or loses in a particular period

• An income statement is also known as a profit and
  loss statement

• An income statement shows revenues not yet
  collected and expenses not yet paid

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Balance Sheet

• A balance sheet shows the assets, liabilities,
  and capital of a business at a particular time

• Assets are items of value owned by the business
  such as
• Cash
• Equipment
• Inventory

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Balance Sheet

• Liabilities are items that the business owes to
  others, such as
• Loans
• Outstanding invoices

• Owners equity is the value of all assets less
  all liabilities

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Accounting Equation

• The balance sheet is base on an equation called
  the accounting equation

Assets Liabilities Owners Equity
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Financing For Your Business

• Bank Loans
• Securedguaranteed with collateral
• Unsecuredno collateral needed

• Equity Capital
• Personal financing
• Friends and family
• Venture capitalists

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Financing For Your Business

• SBA Loans

• Other Loan Sources
• Small Business Investment Companies
• Minority Enterprise Small Business Investment
  Companies
• Department of Housing and Urban Development (HUD)
• The Economic Development Administration
• State Governments
• Local and Municipal Goverments

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Shoplifting

• To prevent shoplifting
• Instruct your employees to watch for customers
  who appear suspicious
• Post signs indicating that you prosecute
  shoplifters
• Ask customers to leave their bags behind the
  counter
• Install electronic devices, such as video
  cameras, electronic merchandise tags, and
  point-of-exit sensors that detect shoplifters

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Shoplifting

• To prevent employee theft
• Prevent dishonest employees from joining the
  company
• Install surveillance systems
• Establish a tough company policy regarding
  employee theft
• Be on the lookout

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Types of Insurance

• Property Insurance
• Insures all business property against normal
  risks, including fire, robbery, and storm damage.

• Casualty Insurance
• Protects a business against lawsuits

• Life Insurance
• Pays out in the event that the holder of the
  policy dies

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Types of Insurance

• Workers Compensation
• Consists of payments to workers who are injured
  on the job

• Other Insurance
• Includes coverage for floods, business
  interruption, crime and renters needs