Planning Flashcards
1
Q
What is the purpose of a business plan?
A
- raise finance
- attract potential investors
- shows their goals
- helps identify problems
2
Q
What are the key concepts of a business plan?
A
- business model
- management team
- key opportunity
- investment requirements
3
Q
What is cash flow and what is cash flow forecast
A
The cash entering and leaving a business
Forecast is the day to day running of a business budget
4
Q
Why produce a cash flow forecast?
A
- advance warning
- make sure business can afford to pay suppliers and employees
- provides reassurance to investors
5
Q
What are problems of a cash flow forecast?
A
- short term
- easy to be optimistic bout sales
- unexpected costs may arise
