Business Finance for Managers: Budgeted Profit, Cash Flow, Break-even Point and KPIs

Business Finance for
Managers

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
I. Summary of the Business Idea.................................................................................................3
II. Discussion related to the key fixed and variable costs...........................................................5
III. Budgeted Profit forecast for the first year of operations.......................................................6
IV. Budgeted Cash Flow for the first year of operations ...........................................................6
V. Calculation of Break even point and Margin of Safety..........................................................7
VI. Key Performance Indicators to check progress of business .................................................7
VII. Recommendations based on results above..........................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business finance refers to the financial assets that are accessible for the business person
to invest in the business. These are speculations done in the business by the proprietors of the
business. Strategy assists the business people with having a definite knowledge on the assets that
are required by them to begin a business. Strategy refers to a composed defined arrangement
about the business that the proprietors are wanting to begin. This planning contains the drawn out
visions, missions, procedures and points of the businessperson that would assist them with
accomplishing the predetermined goals (Arjaliès, and Bansal, 2018). Business plan is generally
made for 3 to 5 years. This planning likewise incorporates every one of the necessities in regards
to the administration staff, trading technique and working and monetary requrements. This report
discusses the business plan that the proprietors are intending to bring in the market. The business
fundamentally engages in assembling of cell phones. The report highlights the costs, projected
profit and loss statement, break-even point and other necessities that the owners need to consider
before starting the business.
TASK
I. Summary of the Business Idea
Business Idea: The business idea continued in this report will be examined underneath. In the
realm of developing innovation, individuals who are well informed are acquiring significantly
greater profits over the people who follow the conventional frameworks. Technological
innovations are available in pretty much every area. The use of cell phones is increasing day by
day and that too the cell phones which are smarter and more advanced. Keeping this in mind, the
assembling and production of cell phones is possibly a valuable business to begin. Cell phones
are a sort of cheap gadget which are produced in a manner to cater the necessities of the clients.
Cell phones predominantly helps the people or organizations in dealing with their day to day
workings. They have turned into a significant product of the general public as individuals are
subjected to use them for various exercises like business, entertainment or schooling (Dharani,
Guntern, and April, 2022). Cell phones have seen an extreme popularity in the extended period
of pandemic as practically all the learning and working have gone inside/from the home.
Providing advanced technologies at a generally low costs would come off as tremendously