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Duration: 43 mins plus activities

Overview

This module covers the following topics:

  • What is cash flow?
  • Causes of cash flow problems;
  • Managing cash flow;
  • Fixed versus variable costs;
  • Understanding pricing & margin issues;
  • Sales mix forecasting;
  • Anticipating expenses; and
  • Forecasting cash flows.

Learning Outcomes

On completion of this module, you will have a better understanding of the flow of cash through your business and how to address cash flow problems.

You will also be able to identify the difference between fixed and variable costs, and determine how these also affect cash flow.

Finally, you will learn how pricing and margin choices affect both cash flow and the viability of your business, and how to predict future performance by forecasting sales, expenses and cash flow.


Preparing Budgets and Cash Flow Forecasts

Review the Preparing Budgets and Cash Flow Forecasts video and powerpoint slides below.  The activities below are based on the information provided in the video, so you will need to watch the video to be able to complete the activities. Download the transcript of the Preparing Budgets and Cash Flow Forecasts video (PDF 93KB).

Module One Learning Activities

After reviewing the above video, it is now time to complete the Learning Activities for this module:

Activity One:

  • After watching the above ‘Preparing budgets and cash flow forecasts‘ video, write down your top 3 cash flow risks in your current or proposed business.
  • For the 3 cash flow risks you identified above, provide one idea for each on how you could manage that risk.
Q&A Interview with Mr Rentals Multi-Site Franchisees, Greg and Natalie Nash

Activity Two:

Activity Three:

Activity Four:

  • Using this ‘Personal Expenses Checklist‘, calculate your annual, quarterly, monthly and weekly living expenses.  Next,  figure out whether the revenue projections of the franchise you’re considering can cover those costs.

Activity Five:


Ideas - Franchise Business Management Essentials Module One: Preparing budgets and cash flow forecasts Self Assessment Quiz

Test your knowledge of this module with this assessment quiz.  To successfully complete this module and obtain a Certificate of Completion you need to get a score of 85% or better.


Budgeting and Cash Flow Forecasts Resources

 

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