Business Startup Tutorial

Before launching any new business venture, whether it be an existing business or a potential new business the first step is to prepare a business plan. The business plan outlines the long term objectives for the proposed venture, it is a blueprint for running the business, a benchmark to check the progress against and also it is crucial for convincing banks, financial institutions, key customers and suppliers to support the proposal.

Although the format of a business plan varies to some degree depending on the originator of the document the financial forecasts in terms of the sales forecast, cash flow forecast and trading forecast for year 1 translate the text of the business plan into numbers.

The sophistication of the financial forecasts should reflect the sophistication of the business and the aim of financial tutorial is to provide clients (particularly new startup businesses) with a better understanding of the requirements in preparing financial forecasts and also to gain a better appreciation of the impact of key parameter variability on the financial forecasts and business viability.

The tutorial covers the following areas:

  1. The Cashflow Forecast
  2. The Trading Forecast
  3. Fixed and Variable Costs
  4. Setting Sales Targets
  5. Case Study - a small retail outlet

Move on to The Cashflow Forecast