5.4 Conclusion

In this section you have:

• looked at the key financial challenges facing entrepreneurs today
• examined many different ways of raising finance and considered the most appropriate for your business
• understood the difference in each of the key financial statements required by any business, the cash flow statement, the profit-and-loss account, the balance sheet and budget statements
• looked at a break-even analysis based on fixed and variable costs
• seen how these statements can help manage business risk.

Now open the BPPR (or the template [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)] ) and reflect on the activities completed in this section. Review the output from each activity and complete the questions raised in Section 4 of the BPPR. While these activities will take you some time to complete, they are essential when planning the first year of your business. A bank or any formal source of funds for your business will require this information and probably much more besides.