Financial Planning And Growth| Management
Cash and Operating Budgets
1. analyze short and long term financing tools for an existing business.
2. discuss the differences between a cash budget and an operating budget?
3. Why might both be important to a small business?
Budget Variance Analysis
4. What is a budget variance analysis?
5. Why is this type of analysis key to determining the strengths and weaknesses of a business?
6. Give a brief example of this analysis
Contingency planning should be an integral part of any business plan. The basic plan sets forth your goals and objectives if all goes smoothly, but almost always something comes along which is unexpected. Identifying and planning what you would do are a challenge but will give you a leg up if and when the unexpected occurs.
7.discuss how you will adjust your small business cash budget to manage contingencies (such as emergencies and market shifts) as well as product and distribution shifts.
Advice to a friend
8. what advice would give to a friend who expresses an interest in starting a new business.
9. Create a financial plan to support a small business opportunity. (Electrical Contractor Company)
Part 2: Financial Plan Need by 8/09/2018
Purpose of Assignment
In this assignment, you will be evaluating a cash budgeting scenario and developing a financial plan for a fictional business.
Review the Cash Budgeting Scenario.
Calculate the cash budget using the Cash Budget Worksheet, and use the Cash Budget Worksheet Answers to review your work.
Write a 700- to 1,050-word financial plan in which you complete the following:
explain potential cash budget benefits and pitfalls for the business, including how the budget supports the strategic goal of the business to increase revenue by 10% annually.
Outline your expected business expenses (e.g. fixed and variable costs, marketing, labor, operations, insurance) and sources of revenue (e.g. funding, sales of products/services).
Include an income statement, balance sheet, and cash flow statement.
Explain how you will adjust your small business cash budget to manage contingencies (such as emergencies and market shifts) as well as product and distribution shifts.
Compare the differences between a cash budget and an operating budget, and explain why both are beneficial.
Explain why a budget variance analysis is crucial for the operation of a business, and discuss how often a budget variance analysis should be performed.
Summarize your findings/recommendations.