Archive for September, 2009

• Executive summary

  Date: 2009.09.22 | Category: Business | Response: 0

  You will have to decide, perhaps with your accountant whether labor, operational overheads, funding or other costs that may be directly related to producing your product should be included in the cost of goods figure. As the business plan concept being recommended is following the KISS principle, (Keep It Simple), separating the various overhead cost factors avoids complex allowances and allocation which can be beneficial for a commencing business with an initial business plan. When established, the more sophisticated accounting and allocating procedures would justifiably be installed. Read the rest of this entry »

• Wages and salaries

  Date: 2009.09.13 | Category: Business | Response: 0

  Sending an invoice is not getting paid and customers are always reluctant to send their money. If you extend say, 15 day payment terms conservative and plan for at least 30 days before the cash will arrive. It’s better to be pleasantly surprised than unexpectedly cash poor.

  Your cash position or cash flow is the operating center of your business. Positive cash flow says you are ahead of the game; negative cash flow says you have a problem. If the money is not in the bank, your bills won’t be paid unless you borrow there by creating another expense. Read the rest of this entry »