Finance

Get Started. It's Free
or sign up with your email address
Rocket clouds
Finance by Mind Map: Finance

1. Revenues, Costs and Profits

1.1. Fixed costs are costs that don't vary.

1.2. Variable costs are costs that change directly with the number of products made.

1.3. Total revenue is the price times the quantity.

1.4. Total costs are the fixed costs plus the variable costs.

1.5. Profits are the total revenue take away the total costs.

2. Cash Flows

2.1. Cash flow is the money flowing in and out of a business on a day-to-day basis.

2.2. Cash flow forecast predicts how cash will flow through a business over time.

2.3. Cumulative cash flow is the sum of cash that flows into a business over time.

3. Business Plan

3.1. A business plan is a plan for the development of a business.

3.2. Overview, Objectives, Market research, Personnel, Finances and Production.

4. The Marketing Mix

4.1. The product has to meet the needs of customers.

4.2. The place is the way a product is distributed.

4.3. The promotion is communication between the business and the customer.

4.4. The price of a product must reflect the value customers put on the product.

5. Obtaining Finance

5.1. Long term sources of finance: Share capital Personal savings Venture capitalist Grants Loans Mortgage Retained profit Leasing

5.2. Short term sources of finance: Bank overdraft Trade credit Delayed payment Factoring Credit cards

6. Customer Focus

6.1. Identifying needs- asking customers to fill out a questionnaire.

6.2. Anticipating needs- pub opens beer garden anticipating warm weather.

6.3. Meeting customer needs- business adapting elements of the marketing mix.