Finance for Entrepreneurs & Small Businesses

Why it is important that we become fluent in business finance, even if we are not in the finance team

How a company is financially structured

How the money flows in business

Examining the pros & cons of debt v equity in financing a business

Identifying the key elements of the Income Statement (or Profit & Loss Account)

Identifying the 5 key elements of the Balance Sheet

How the Balance Sheet identifies the sources and application of Capital for a business

Reconciling the Profit in the Income Statement to the Movement in Equity on the Balance Sheet

Identifying the key elements of the Cash Flow Statement

Linking the Profit from the Income Statement to the movement in Cash on the Balance Sheet via the Cash Flow Statement

How to undertake basic profitability margin analysis

Understand what EBIT and EBITDA are and why they might be important measures in a business

Understand how to calculate the Return on Capital Employed

Understand the relationship between Fixed and Variable Costs and how these affect a company's price sensitivity

How to measure the Efficiency of a business

Examining the relationship between Efficiency, Profitability and the ROCE

Examining the use of Debt to fund a business and the effect of that debt via Leverage

Understand the importance of the affordability of debt

Examining the effect of Leverage on ROCE in arriving at the ROE

Examining the Working Capital of a business and the importance of Cash Flow

Examining the effect of the Working Capital Requirement on a company's Cash Flow

Introducing the Case Study that assesses Modules 1 - 4

Review of Case Study 1

Understand the difference between Direct and Indirect Costs

Understand the difference between Fixed and Variable Costs - as well as Semi Variable & Fixed Costs

Understand the different between Opex and Capex and the impact on the financials of the business.  Explanation of depreciation including a worked example

Understand the difference between Accruals and Prepayments, and how they are used to move costs into the correct period

Understand the difference between Accrued Income and Deferred Income, and how they are used to move revenue into the correct period

Understand other types of costs in the business including sunk, marginal and opportunity costs

The need for budgeting and why it is important to ensure the business is well run

Examining the essential steps in setting up a budget

How to undertake variance analysis - comparing 'actual' figures with 'budgeted' figures

Advanced variance analysis techniques - breaking the variance down into the constituent elements

How to using variance analysis to produce accurate forecasts for the future

Understand the concept of the Time Value of Money

How to create a business case in excel

How to calculate the Net Present Value of a business case in excel

How to calculate the Internal Rate of Return of a business case in excel

Applying the Cost of Capital and the WACC to a business case

How to calculate the NPV and IRR using excel shortcuts

Understanding how assets are valued

How property is valued - the Yield

Understanding how companies are valued - PE Ratios and multiples of earnings

Understanding the difference between a loan and a bond, and how bonds are priced

Understanding the effect of Risk on Asset Values

Understanding the effect of Interest Rates on Asset Values

Applying valuing techniques to pricing shares

A Case Study on asset valuation pulling together all of the concepts covered in this workshop

The answer to Case Study 2