Learn how to identify cash flows in your organization, how to address the issue when cash flow problems arise, and how they can destroy a company.
- Cash flow problems can kill companies,…even when those companies have a profitable business model.…Now how do cash flow problems arise…and how can they kill a company?…To address these two questions,…let's assume that we're are starting a simple wholesale…office supply business.…Our customers will be businesses not individuals.…And we'll focus on opening just one store.…As we think through the process of opening our one store,…let's focus on cash.…In particular, notice how long we have to spend cash…until we finally start to collect cash.…
Step one.…Coming up with a business idea.…The good news here is that often this step…doesn't require our spending any cash.…We think.…We talk to friends.…We look around at existing businesses.…Of course we can hire some business advisors to help us…in this idea generating process.…But for this example,…let's assume that all of this work is in our heads,…so it doesn't cost any cash so far.…Step two, get the land, the building, and the key personnel.…In this case our business idea is to run an office supply…
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- Summarize the two forecasting techniques used to create a complete business plan.
- Analyze the five methods for maintaining financial records for a company and explain what kind of company would require each method.
- Calculate payroll expenses with accuracy.
- Apply the entity concept to hypothetical situations.
- Describe the process for obtaining financing from third-party sources.
- Explain the process for valuing a company.