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108 Financial information produced to support a new venture usually relies on a combination of sources: Accurate data Assumptions Your own estimation A good understanding of financial statements and financial data is crucial at all stages of an enterprise, including start-up, and is the part of the business plan that investors and banks will scrutinise most closely. The importance of business accounting In order to assemble financial statements and to be able to analyse your financial data it is important that you adopt good accounting practices. These are also important in order to calculate tax due to Revenue and it is a legal requirement to keep accurate accounting records for up to 5 years. It is possible to run a simple business using the following three ledgers: 1. Sales ledger, 2. Purchase ledger, 3. General ledger (containing summary information about sales, purchases, assets and liabilities). Many businesses will make use of business accounting software. Popular accounting software packages for SMEs (or ‘small and medium-sized enterprises’) are produced by IT companies such as Sage, Intuit and Pegasus. Financial statements Financial statements are general purpose, external financial statements prepared according to generally accepted accounting principles. Profit and Loss statement Also referred to as the ‘P&L’, the Profit and Loss statement is one of the major financial statements used by business owners along with the Balance Sheet and the Cash Flow Statement. The P&L lists the company’s total income and total costs. It then subtracts these costs from income to calculate net profit, the actual amount of money the company has made for the period covered. This figure is commonly referred to as the ‘bottom line’ and is a good indicator of how well the business is performing. Profit and Loss statements are generally prepared at regular intervals, e.g. monthly, quarterly and annually. They show what profit or loss was made during the period covered. When looking at P&Ls over several periods, management gets a good picture of the financial health of the business and can use this information to make future assumptions and projections.
109 P&Ls follow a standard format with some variations depending on the nature of the business. The main items included are: Sales. The sale of goods and/or services. Sometimes referred to as the ‘top line’. This is the most important source of revenue and shows the money being generated. It appears first in the statement. Other income, i.e. interest earned from investments appears further down in the statement. Cost of sales. Anything directly related to producing goods or services. For example, in the case of manufacturing, items such as components, labour, raw materials, electricity etc. would all be needed to produce the product and would therefore be included under cost of sales. Gross profit. Gross profit = sales – cost of sales. Profit margin. Profit margin = [gross profit ÷ sales] x 100. This is a financial ratio which calculates profit as a percentage of the selling price. It is calculated by dividing the gross profit by the sales figure and then multiplying by 100. Margins are useful indicators of profit relative to business activity and irrespective of the size of the company. Operating expenses. These are the costs associated with supporting the production of goods/services and include such items as overheads and staff wages. Depreciation. An amount which allows for loss in the value of certain assets (e.g. buildings, machinery, computers, vehicles) over time. These items will eventually need to be replaced and depreciation allows for one-off (and generally large) future expenses to be spread over a number of years. Being based on the original cost it does not reflect true market value of the asset or the cost of replacing it which is likely to be substantially higher. Operating profit. Operating profit = gross profit – operating expenses. Income. This refers to income other than sales and includes interest received from investments, dividends from shareholdings, rent received from letting business properties etc. Unlike revenue from sales, this source of income is not affected by the performance of the company and therefore appears separately. Net profit before tax. All income (sales, interest and dividends) minus all costs and expenses but before tax is deducted. Net margin. Another financial ratio but this time to calculate the net profit as a percentage of the selling price. The net margin will be a lower percentage than the profit margin. The formula used is: net profit ÷ sales x 100. Tax. Tax due to Revenue. Dividends. Dividends due to shareholders of the company. Net profit. This is the figure that is left after all expenses (including tax) are deducted from the original sales figure; commonly referred to as the ‘bottom line’. This is referred to as a net loss if the figure is negative.
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Omega: Opening More Employment Gate
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Contents The Omega Project Introduc
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The Omega Project The context for t
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2 distinctions between the two term
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4 for example, is a statement from
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6 Considering Future Directions A s
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8 Collecting Your Personal Informat
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10 not enough. For example, let’s
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12 The Flexible Archive "Necessity
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14 relevance is going to dictate th
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16 To achieve this you must study t
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18 your suitability for the job off
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20 4. Greeting. Dear + given title
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22 employer or collaborator can hav
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24 2. Etiquette Be punctual. Punctu
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26 BIBLIOGRAPHY 1) The Business Dic
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28 under a general heading (“soft
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30 The new interest in soft skills
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32 Figure 1. Dimensions of skills K
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34 Figure 2. Do soft skills matter?
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36 HEIs generally leads to changes
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38 These expectations - of insecuri
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40 how do teamwork skills translate
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42 - Leadership is rotated; no one
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44 The two sides of teams - the thi
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46 Leadership Skills: Soft Skills f
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action helps the director, manager
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50 Styles of Leadership The aforeme
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52 in relation to arts graduates, w
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54 Figure. 4. Problem-solving proce
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56 Mindfulness involves doing these
Page 64 and 65: 58 essentially cover the hard and s
Page 66 and 67: 22) Güreşen, H. (2013), Erasmus m
Page 68 and 69: 62 CHAPTER III. Marketing Arts Orga
Page 70 and 71: 64 Boorsma (2002) is of the opinion
Page 72 and 73: 66 imagination of marketers on how
Page 74 and 75: 68 have a proper marketing plan. A
Page 76 and 77: 70 audiences or customers (Dickman,
Page 78 and 79: 72 Once the strategic market planni
Page 80 and 81: 74 organization’s product, while
Page 82 and 83: 76 The Marketing Mix The terms ‘m
Page 84 and 85: 78 1999). The promotion plan should
Page 86 and 87: 80 Although some organizations are
Page 88 and 89: 82 it cannot do directly is to crea
Page 90 and 91: 84 Marketing platforms Facebook, Tw
Page 92 and 93: 86 Record labels and independent ar
Page 94 and 95: 88 uncertainty on the part of the v
Page 96 and 97: ut also your own manager. You must
Page 98 and 99: 16) Hill, L., O’Sullivan, C. and
Page 100 and 101: 94 To change your present life and
Page 102 and 103: 96 Handling your finance You need t
Page 104 and 105: 98 Executive Summary The executive
Page 106 and 107: 100 too far too fast can lead to de
Page 108 and 109: 102 evolution of the market. They a
Page 110 and 111: 104 A description of the legal str
Page 112 and 113: 106 description. Any images, photos
Page 116 and 117: 110 Balance Sheet The balance sheet
Page 118 and 119: 112 Carmen Parra Rodríguez Design
Page 120 and 121: 114 Founders, family and friends Th
Page 122 and 123: 116 BIBLIOGRAPHY Textbooks: 1) Barr
Page 124 and 125: 118 CHAPTER V. Project Management &
Page 126 and 127: 120 The project should come out
Page 128 and 129: 122 Steps of Objective Analysis Ste
Page 130 and 131: 124 Information contained in the Lo
Page 132 and 133: 126 Most projects fail, not because
Page 134 and 135: 128 Activity schedule helps us to p
Page 136 and 137: 130 2. Design of the project* 2.1.
Page 138 and 139: 132 Other funds are managed directl
Page 140 and 141: 134 BIBLIOGRAPHY 1) Bakay, E., Kale
Page 142 and 143: 136 F Floatation 115 Formal Leaders
Page 144: 138 V Values statement 97 Venture C
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