Budgeting & Forecasting

Achieving Lowest Expenses

OBJECTIVE: Your business growth will come about by not only making money but by carefully investing the cash produced by frugal spending. You will learn the importance of minimizing your expenses and how to achieve it. Wealth accumulation is a matter of frugality The man next door The power of compounding The value of the money you save The Wal-Mart Model Keeping costs low and discounting heavily Ranked number one for lowest ratio expenses to sales Share profits with your managers...

Accounting Pitfalls SMEs Should Avoid

Do not think of accounting as separate of the business processes. This is usually the result of the lack of integration and one of the most common pitfalls for startups and SMEs. Accounting is a task that should be done on a daily basis, not every week or every month. Integration is when accounting is part of the business processes. After collecting the accounting data, you need to understand the basics; you need to understand what these numbers mean in order to be able to interpret and...

Practical Tips To Get The Most Out Of Your Budgeting

Budgeting is the plan and guide to your financial success. It helps you attain your financial goals. It controls your spending by comparing your budgets to your actual payouts. Without a carefully thought-out budget, you risk going out of business! So how can you get the most out of your budget?Start by translating your strategic plans into measurable quantities, but be realistic so that your budget can anticipate the required resources and expected profits as accurately as possible. ...

Pricing Q&A's

Whether you sell a product or service, the price you charge your customer will have a direct impact on the success of your business. Unfortunately, pricing is one of the least understood facets of running a small business. Many small business owners calculate their basic costs, and then pick a price arbitrarily. Arbitrary prices, however, mean arbitrary results. Taking the time to evaluate all the factors that will impact your price - from your expenses to your image to your customers'...

Tactics to Avoid Lowering Your Prices

Many small businesses find themselves feeling pressure to lower their prices. It may come when a low-priced competitor shows up in your market, or when a pinched economy hits your industry. Yet few small businesses can afford to get themselves involved in a price war.There are a handful of times when dropping prices makes sense; for example, when your cost of doing business has dropped and you want to pass along these savings. But if your existing prices are set to cover expenses and necessary...

Cash Flow Sensitivity Analysis Worksheet

The cash flow budget worksheet allows the sensititvity analysis of your cash flow. Insert your cash flow informations in the middle column "expected cash flow" and the tool will calculate pessimistic and optimistic scenarios assuming a variation of 25% in receipts and disbursements. This is intended to be a simple and practical tool to be adjusted and used by SMEs working in all sectors. You may adapt it to reflect your business needs, type of clientele, products and services you offer. This...

Initial Cash Requirements

The costs of starting a business are often underestimated. New entrepreneurs should consider, at a minimum, six months personal and business cash flow to have an idea of the initial costs they will have to bear. Complete the tables in the Excel file that you can download below. The summary table will provide an overview of your total expenses over a period of six months. This is intended to be a simple and practical tool to be adjusted and used by SMEs working in all sectors. You may adapt it...

Start-up Costs Worksheet

Provided By Potential.com, Content Partner for SME Knowledge UAE Benefits:You need an investment to start a new project or a new business.Do you know what are your one-time costs of items that would still have a value later? (e.g. your assets such as equipment, furniture etc.)Do you know what would your running costs be for a period of time (6 – 12 months)? These are your salaries, rent, utilities, etc.There is no universal method for estimating your start-up costs.To...

Calculating Your Break Even Point

Provided By Potential.com, Content Partner for SME Knowledge UAE   Benefits: Break-even analysis is used to determine when your business will be able to cover all its expenses and begin to make a profit.  The level of sales at which profit is zero is called the break-even point. To calculate your break-even point, you will need to identify your fixed and variable costs. Fixed costs are expenses that do not vary with sales volume, such as rent and administrative salaries.These...

Financial Ratios Template

Provided By Potential.com, Content Partner for SME Knowledge UAE Benefits: Financial ratios measure your company’s productivity. There are many ratios you can use, but they all measure how good a job your company is doing in using its assets, generating profits from each Dirham of sales, turning over inventory, or whatever aspect of your company’s operation that you are evaluating.Knowledgeable business owners all use financial ratio analysis to learn more...

Feasibility study

Copyright © Khalifa Fund for Enterprise Development  .... This video is produced by SME knowledgeThe feasibility study tells you whether or not the project idea will succeed before beginning to develop the implementation planThis video explains how to prepare a feasibility study for your project .. step-by-stepKhalifa Fund was established in June 2007 by the virtue of the (Law 14 of 2005), as an independent, Not for Profit Small and Medium Enterprises (SMEs) Socio Economic Development...

Financial Ratios Recap Exercise

Provided by Potential.com, Content Partner for SME Knowledge UAE   This video shows a recap exercise on the financial ratios discussing the following ratios: common size ratio, current ratio, quick ratio, and sales to receivables ratio.  

Budgeting - Ask Dr. Dirham

Dr. Dirham is an Emirati expert in personal financial matters who is eager to help you manage your money more wisely. An initiative by ADCED.     Budgeting - Ask Dr. Dirham

Saving - Ask Dr. Dirham

Dr. Dirham is an Emirati expert in personal financial matters who is eager to help you manage your money more wisely. An initiative by ADCED.     Saving - Ask Dr. Dirham