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How to manage your cash, look for funding and deal with banks.
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T: @eMotivator W: http://david.bozward.com E: [email protected]
Finance, Funding & Dealing with Banks
Dr. David Bozward
T: @eMotivator W: http://david.bozward.com E: [email protected]
What do you want from your bank?
What does your bank want from you?
T: @eMotivator W: http://david.bozward.com E: [email protected]
Banks are....
The are:• Safe Place to leave
cash• Local Networking• Sounding Board• Electronic Payments
Business Model• Transactions• Interest Payments• Extra charges• Extra products
– Insurance
T: @eMotivator W: http://david.bozward.com E: [email protected]
Your Offer
• You and your skills/talent/capabilities
• The “What’s in it for your customers” factor
T: @eMotivator W: http://david.bozward.com E: [email protected]
Your Sales
• What skills and attributes make a good sales person?
• People buy from people.• Emotion and Logic• Good Feelings or Solutions to problems
T: @eMotivator W: http://david.bozward.com E: [email protected]
Your Sales
• Outstanding Service.
• Appalling service.
• What aspects of great service can you use for your own business ideas?
T: @eMotivator W: http://david.bozward.com E: [email protected]
Your Finance
• Where do we start?
• Why are you in business?
• You need to make money.
• How much?
• Enough to cover your costs.
T: @eMotivator W: http://david.bozward.com E: [email protected]
Example 1
• You have household bills of £1000 per month.
• All earnings are profit.• Need to earn £12000 to survive per
year.
T: @eMotivator W: http://david.bozward.com E: [email protected]
Example 2
• You have household bills of £1000 per month.
• Half earnings are profit.• Need to earn £24000 to survive per
year.
T: @eMotivator W: http://david.bozward.com E: [email protected]
Example 3
• You have household bills of £1000 per month.
• 75% earnings are profit.• Need to earn £16000 to survive per
year.
T: @eMotivator W: http://david.bozward.com E: [email protected]
Example 3
• For every £1 you earn keep 75p to put to bills
• Bills total £12000 for the year.• Therefore how many 75p’s do you
need to earn?• £12000/0.75= £16000
T: @eMotivator W: http://david.bozward.com E: [email protected]
More useful info
• What is the expected average sale value?
• What proportion of customers will buy from you?
T: @eMotivator W: http://david.bozward.com E: [email protected]
Survival.
Profit.
Turnover.
Average sales value.
Number of sales.
Number of customers to see to get 1 sale.
Number of people need to speak to, to survive.
(£12000)
(£0.75p)
(£400)
(£16000)
(40)
(1 in 10)
(400)
Your Finance
T: @eMotivator W: http://david.bozward.com E: [email protected]
Your FinanceNo of people need to speak to = 400.
No of customers to see to get 1 sale (1 in 10).
Number of sales = 40.
Av sales value = 400.
Turnover = £16000.
Profit = 75p in £.
Survival = £12000.
T: @eMotivator W: http://david.bozward.com E: [email protected]
Your Finance
• Making money is good however cash is king.
• What do you really need to set up your business?
T: @eMotivator W: http://david.bozward.com E: [email protected]
Cash Flow
Money
Used to acquire
resources(stock)
Resources used to produce goods or
services
Goods/Services exchanged for
money
£Funding
T: @eMotivator W: http://david.bozward.com E: [email protected]
TIME, TAX, DEBT, BANKS, ..ETC TO DEAL WITH... HELP!
But...
T: @eMotivator W: http://david.bozward.com E: [email protected]
T: @eMotivator W: http://david.bozward.com E: [email protected]
Accessing Accounts
• Online / Telephone• Payments
– What, when
• Current transfers
T: @eMotivator W: http://david.bozward.com E: [email protected]
Funding your sales
“Run Rate”
• Living Costs• Marketing• Telephones• Travel
T: @eMotivator W: http://david.bozward.com E: [email protected]
Receiving Payments
“Timings+Costs”
• 30 Day Invoice• Paypal• Bank Transfers• Bad Debt
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Managing Money
• Money in• Money Out
• When to spend• When not to spend• Why spend
T: @eMotivator W: http://david.bozward.com E: [email protected]
Making Payments
• Yourself• Government
– VAT– Tax (Corp)– Tax (PAYE)
• Adverts• Insurance• Repairs/Maintenance• Telephone/Rent/..
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Funding Purchases
• Credit Card• Overdraft• Loan• Factoring• Shareholders
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Stock
• In - On Order
• Out – Planned work
• On Hold
T: @eMotivator W: http://david.bozward.com E: [email protected]
Create your own
Living ExpensesCash in Bank
1 to 30 Days
1 to 30 days
Credit, Debt, ...
Stock Balance
T: @eMotivator W: http://david.bozward.com E: [email protected]
![[Sri Lanka Savings Bank Ltd] · Cash and cash equivalents comprise cash in hand and balance with Banks. For the purpose of the statement of cash flows, cash and cash equivalents consist](https://img.pdfslide.us/doc/110x75/6053ff5ffe573f46f242197c/sri-lanka-savings-bank-ltd-cash-and-cash-equivalents-comprise-cash-in-hand-and.jpg)
