Funny Finance

As amusing as the above video is for most viewers, finance hold s a serious, and important part in all aspects of a business.

What is Finance?

In a general sense, finance is the management of funds and other valuables that can easily be converted into cash (ie. assets).  Finance can hold different meanings for different users like, experts, entrepreneurs, and then the academic community.

Principles of Finance

Some principles include, but are not limited to:

1. Financing Analysis – Used to analyze financial implications and options of major purposes or growth opportunities.
2. Balance Sheet Evaluation – Apply to financial ratios, and indicate to the owner(s) how well the company is allocating its economic resources.
3. Cash Management – Formulas that are used to assess simply how much cash the company is generating from its day-to-day operations.

It’s Good to Note

Time Value of Money: – value of monetary figuring in a given amount of interest earned over a given amount of time.

–       Central concept in the “Finance Theory”

Time Value Terminology: – “Future Value”

–       “Present Value”

–       “Discounted Value” (to the present)

What is a Business Plan?

Is a traditionally formulaic and resourceful process for businesses to look ahead, allocate resources, focus on key points, and prepare themselves for problems and opportunities they might encounter in the company’s future.

What do Business Plans Include?

Business plans should aim to include certain key elements. Such as the businesses strengths, not many of the business’ weaknesses, a concept of security (particularly something you can convert into cash), credible data, and proof of profitability.

U&Me Dance – Dance Studio Business Plan

-Financial
For an example of a business plan we’ll take into account U&Me Dance. Certain highlighted financial elements focus on their start-up expenses, funding, and monetary requirements for profitability in the first year of operation.

-Strengths
U&Me Dance offers a variety of dance lessons within their own facility, along with expanding into the community by offering specialty dancing in schools, and nursing homes.

The business plan also has a very realistic understanding of their target market in relation to their planned location.

-Proof of Profitability
The business plans states that U&Me Dance is the only studio that offers classical styles of ballroom, and social dance in the area of their studio location. This provides reassurance to investors/funders, and a positive outcome for profitability for a studio with such specialized dance forms.

If you’re interested, U&Me Dance’s Business Plan can be found by following the link:

http://www.bplans.com/dance_studio_business_plan/executive_summary_fc.php