Elements and Performance Criteria
- Ascertain own financial position and the ability to provide capital/equity for the business
- Determine projected cash flow for the business
- Determine the level of forecast business activity over a year and the business mix
- Estimate establishment costs for the business and repayment schedule for borrowings
- Calculate the monthly variable and fixed costs needed to conduct business activity over a year
- Estimate personal drawings needed to be taken from the business
- Estimate the monthly income generated by the business for a year based on price per unit item or hourly charge rate for labour
- Develop a cash flow budget for the first year of business operation
- Seek professional advice to estimate goods and services tax and operating finance required for the business
- Source the required funds to establish the business
- Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments
- Investigate methods of accessing alternative sources of finance
- Identify strategies for meeting financial obligations
- Implement plans to access available funds as required
- Monitor profitability of the business