Elements and Performance Criteria
- Prepare to plan finances
- Identify costs associated with production and delivery of business products and/or services
- Set profit targets according to business venture requirements and workplace procedures
- Calculate prices based on costs and profit targets, as a charge-out rate for labour or unit price for products and/or services
- Calculate breakeven sales point to assess viability of business venture
- Evaluate and select pricing strategies in relation to market conditions to meet profit targets and according to workplace procedures
- Prepare projected profit statement to supplement business plan
- Develop a financial plan
- 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 according to business plan and legal requirements
- Identify capital investment requirements accurately for each operational period
- Select budget targets to enable ongoing monitoring of financial performance
- Plan to acquire finance
- Identify startup and ongoing financial requirements according to financial plan and budget
- Identify sources of finance for required liquidity according to business goals and objectives and workplace procedures
- Research and assess cost of securing finance on optimal terms
- Develop strategies to obtain finance as required to ensure financial viability of business venture