Elements and Performance Criteria
- Identify costs, calculate prices and prepare profit statement
- Identify and document costs associated with production and delivery of business products and services
- Calculate prices based on costs and profit margin, as an hourly charge-out rate for labour or unit price for products
- Calculate breakeven sales point to establish business viability and profit margins
- Identify appropriate pricing strategies in relation to market conditions to meet business profit targets
- Prepare projected profit statement to supplement the business plan
- Develop a financial plan
- Set profit targets or goals to reflect owner’s desired returns
- Identify working capital requirements necessary to attain profit projections
- Identify noncurrent asset requirements and consider alternative asset management strategies
- Prepare cash flow projections to enable business operation in accordance with business plan and legal requirements
- Identify capital investment requirements accurately for each operational period
- Select budget targets to enable ongoing monitoring of financial performance
- Acquire finance
- Identify startup and ongoing financial requirements according to financial plan/budget
- Identify sources of finance, including potential financial backers, to provide required liquidity for the business to complement business goals and objectives
- Investigate cost of securing finance on optimal terms
- Identify strategies to obtain finance as required to ensure financial viability of the business