Every business should calculate its income and costs accurately. It should regularly monitor changes in income, costs and review its pricing approach. It will be better for the entrepreneurs if at least one partner has the ability to prepare budgets and cash flows tables or has good financial skills. The entrepreneurs should review the financial …
Create your own Cash Flow Forecast for the first year of your Social Enterprise using the table above. You need to add additional expenses if they are missing in the table. Estimated time: max. 4 hours
A cash flow forecast is a financial planning tool that provides information about expected income and expenses of an enterprise for a specified period showing whether it has cash surplus or shortfall. If your financial situation is not strong and if you do not forecast your cash flow then your business may fail at some …
Budget preparation involves two processes: predicting income and expenses for a specific period and allocating available finance to meet current and future needs. The budget is a very important element of your business plan as it provides detail of the financial performance that you expect your business to reach. You need to think in simple …
Capacity planning as an important element of manufacturing, refers to the process of matching production capacity with sales demand. This is also applicable to virtually every business that faces constraints in meeting demand, and it includes service industries, retail and commercial sales, IT, government agencies and many more. You need to consider the resources as …
The sales forecasting is the process of estimating how much of a particular product is possibly to be sold in a specified market at the specified price in a specified period of time. A sales forecast period can be monthly, quarterly or annually. You may consider sales as income or revenue. Near realistic sales forecasting …
This is a very important step for the success of your enterprise. In the marketplace, the companies consider different elements during determining their product’s/services’ price as value for money, quality, uniqueness, differentiation and customer choice. For many social enterprises their marketplace is in contracting with the public sector to deliver a range of services to …
Social enterprises need establishment and working capital just like other businesses. During the establishment phase, there will be expenses in 3 main areas as listed below: Determining the start-up / setup costs of the business Determination of monthly running expenses Entrepreneur’s survival budget In general, for many businesses it is difficult to make a lot …
When a social or a normal enterprise is to be established, startup and working capital is needed. For this reason, a budget including the startup and working capital that will be needed during establishment and execution phase should be prepared. In the preparation phase of the initial budget of the initiative, the following topics should …
Introduction By the end of this module learners will get necessary information about the financial implications of setting up their Social Enterprise. This will cover from determining the financing need to calculating the transition point to profit as well as calculating the required sales amount for the desired profit. Purpose The general purpose of this …