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Financial Management for the Small Business Colin Barrow

Financial Management for the Small Business By Colin Barrow

Financial Management for the Small Business by Colin Barrow


$17.19
Condition - Very Good
Out of stock

Summary

Practical guidance on all aspects of business finance.

Financial Management for the Small Business Summary

Financial Management for the Small Business by Colin Barrow

The sharp rise in numbers of new entrepreneurs has been accompanied by the urgent need to become financially literate: the most common cause of business failure is poor financial control stemming from an ignorance of the basics of business finance. Financial Management for the Small Business is intended to help those who find business finance confusing. Now in its sixth edition, it continues to provide advice on proper financial planning and control, and reinforces essential points through the use of questions within each section. Beginning with an introduction to the key financial statements, it moves on to look at the tools of financial analysis - the keys to controlling a business successfully. The final part of the book deals with business planning and budgeting, a vital area of business finance as most new ventures cannot get off the ground without a business plan, and existing businesses cannot expand. An invaluable read for aspiring entrepreneurs and those already in business, this book could mean the difference between success and failure.

Financial Management for the Small Business Reviews

Ideal for entrepreneurs... highly recommended. - George Cox, former Director General, Institute of Directors

About Colin Barrow

Colin Barrow was until recently Head of The Enterprise Group at Cranfield School of Management, where he founded the Business Growth and Development Programme - the UK's most successful programme for entrepreneurs. He teaches on MBA and management development programmes throughout the world and is on the board of four small businesses. He is also the co-author of the best-selling Business Plan Workbook (published by Kogan Page).

Table of Contents

Part 1: Understanding key financial statements 1. The balance sheet - where we are now 3 A personal experience 3; The public picture 6; The structure of the business balance sheet 8; The ground rules, concepts and conventions 13; Questions 18 2. The profit-and-loss account - where we have been 19 Dealing with transactions 19; Some more ground rules 22; Profit-and-loss account for a manufacturing business 24; Profit-and-loss account for a service business 26; The structure of a profit-and-loss account 28; Accounting requirements of the Companies Acts 30; Questions 31 3. Cash flow and funds flow - where are we going 35 Overtrading 35; Forecasting cash needs 38; Questions 39; Funds flow 39; Question 40 Part 2: The tools of financial analysis 4. Business controls 45 Business objectives 45; Ratios, the tools of analysis 48; Some problems in using ratios 50; Ratios in forecasting 54; Questions 54 5. Measures of profitability 55 Return on capital employed (ROCE) 55; Return on shareholders' capital (ROSC) 56; Gearing and its effects on ROSC 57; Profit margins 59; Calculating tax due 62; Sole traders and partnerships 63; Company taxation 65; Which structure is best? 66; Minimizing taxes 67; Value added tax (VAT) 70; Question 75 6. Control of working capital (or liquidity) 77 The current ratio 78; The quick ratio or acid test 79; Credit control 79; Stock control 83; Cash control 84; Circulation of working capital 84; Averaging ratios 85; Questions 85 7. Controlling fixed assets 87 The fixed-asset pyramid 87; Planning new capital investment 89; Average return on capital employed (ARCE) 90; Payback period 93; Discounted cash flow 95; Present value 97; The profitability index 99; Internal rate of return 102; Risk and sensitivity analysis 105; Dealing with inflation 106; Discounted cash flow in working capital decisions 106; Launching a new product: a capital budgeting case study 106; Some general factors in investment decisions 109; Questions 112; Discount tables 114 8. Costs, volume, pricing and profit decisions 119 Adding up the costs 119; The components of cost 120; Fixed costs 121; Variable costs 123; Semi-variable costs 124; Break-even point 124; Margin of safety 126; Costing to meet profit objectives 127; Costing for special orders 128; Real-time pricing 130; Costing for business start-up 131; Costing to eliminate unprofitable products 133; Questions 135 Part 3: Business plans and budgets 9. Budgets 139 Budgeting for a business 139; Timescale and detail 141; Objectives 142; Market appreciation 146; Forecasting sales 149; Resources appreciation 152; Key strategies and operating plans 155; Setting the budget 157; Budget guidelines 158; Monitoring performance 159; Flexing the budget 159; Seasonality and trends 161; Cash and capital budgets 161; Building a budget model 162 10. Writing and presenting business plans 163 What financiers look out for 163; Appearance and size 166; Layout and content 167; Writing and editing 177; Who to send it to 178; The oral presentation 179; Business planning software and online help 180 11. Bookkeeping and flash reports 183 Why you need proper records 184; Starting simple 184; Building a system 188; Using a computer 191; Monthly flash reports 198 12. Improving performance 199 Pricing for profit 199; Reducing costs 201; Squeezing working capital 202; The profit-improvement programme 204

Additional information

GOR002324209
9780749445638
0749445637
Financial Management for the Small Business by Colin Barrow
Used - Very Good
Paperback
Kogan Page Ltd
20060303
256
N/A
Book picture is for illustrative purposes only, actual binding, cover or edition may vary.
This is a used book - there is no escaping the fact it has been read by someone else and it will show signs of wear and previous use. Overall we expect it to be in very good condition, but if you are not entirely satisfied please get in touch with us

Customer Reviews - Financial Management for the Small Business