Finance for Entrepreneurs & Small Businesses
This workshop will provide entrepreneurs and small business owners with the key financial knowledge to ensure that their businesses succeed financially. We will teach the ‘language’ of finance – helping you to read and interpret financial information and to make informed operational judgements and decisions to maximise the financial success of your business venture.
Introduction
Introduction to the Finance for Entrepreneurs & Small Business Owners online workshop, summary of workshop objectives and an overview of the 8 modules
Module 1 - The Essentials of Business Finance
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
10 multiple choice questions to test your knowledge and understanding of Module 1
Module 2 - The Key Financial Statements
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
10 Multiple Choice questions to test your understanding and knowledge of the concepts covered in Module 2
Module 3 - Ratio Analysis
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
10 Multiple Choice questions to test your knowledge and understanding of Module 3
Module 4 - Ratio Analysis & Case Study
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
10 Multiple Choice questions testing your knowledge of the topics covered in Module 4
Introducing the Case Study that assesses Modules 1 - 4
Review of Case Study 1
Module 5 - Costs: Types, Behaviour & Treatment
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
Test your knowledge and memory of the topics covered in Module 5
Module 6 - Budgeting & Forecasting
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
10 Multiple Choice questions testing your knowledge and understanding of Module 6
Module 7 - Building the Business Case
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
10 Multiple Choice questions to test your understanding of the topics covered in Module 7
Module 8 - Asset Valuation
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
10 Multiple Choice questions to test your understanding of topics covered in Module 8
A Case Study on asset valuation pulling together all of the concepts covered in this workshop
The answer to Case Study 2
Review
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