Financial Planning Informative Speech

Speech 4 Informative Speech Weve got a gang of uninformed bozos steering our ship of state right over a cliff, weve got unified gangsters stealing us blind, and we cant even clean up after a hurricane much less build a hybrid car. But kinda of getting mad, all(prenominal) i sits around and nods their heads when the politicians say, Stay the course. Stay the course? Youve got to be kidding. This is America, non the damned Titanic. Lee Iacocca Finance mean legend. A probably tempestuous Lee Iacocca was indicating that pay is something that has to be pre-planned, planned, re-planned and even post-planned.Financial planning in itself does non involve just setting budgets, wage rates or deadlines. It is every(prenominal) about getting to know realistic work schedule, the manner in which they can be executed, back up plans that can be apply and the least cost with the friend of which the entire project can be executed. So basic each(prenominal)y, financial planning and growt h forecasting, both involve, the answers to the 4 alpha questions, why, when, where and how (answers have to be cost oriented). mensu balancens in Long name Financial PlanningStep 1 Let us take the example of a coffee shop, whereas a financial planner, one has to find legitimate answers to 4 questions, namely Why should we be producing a specific feature on the wag card? (consider cost of crossingion and sales price) When should we produce such(prenominal) an item and for what time duration? (bear in mind seasonal costs, puffiness of naked as a jaybird material prices) Where should we produce the item, right in the shop or some production center? (consider transport cost, nature of goods and selling cost) How should one produce the item, manually or mechanically? consider equipment and personnel cost) Step 2 The second step is to assess your business environment. In this step, examine the competitors performance, pricing and distribution is an absolute necessity. In such a s cenario, you may also prepare a cost sheet of the financial features of production, namely, the notes that you would have to invest as a manu itemuring cost, its sales cost, and the profit that it would yield. logically speaking, the sale price should be more than the cost price and the cede over asset ratio/return over investment ratio should be healthy.While finalizing these three figures, you will postulate to take into consideration 3 primal aspects. Average spending capacity of your clients. Your competitors quality, quantity and price. Popularity of the product, potential market, customer retaining capacity of the product, etc. Though the trend of such products is more data-based in nature, they might become full-time, public favorite products, hence it is also important to make a financial provision to recover losses, that deck out in the experimental period, until the product establishes itself in the market.Step 3 The third gear and quaternate step are more analyti cal in nature and from the finance point of view, they are also quite expansive. The idea that you need to utilise in the third step is allocation of resources in such a manner that you tend to make a genuine profit in sales, during the retentive run. In this step, you will be using and analyzing cash lessen statements on almost a daily basis. The key is to have changeless cash out be givens for consecutive days/months/years. Cash outflow is basically all expenses and losses. Losses are quite uncontrollable but expenses are decidedly controllable.Hence search for raw material sources, manpower and production processes that will help you to maintain a uniform and low per unit cost for the item/product. For example have regular suppliers, who will supply at an agree and uniform cost. This uniformity will eventually come in expert to curb and control unexpected losses, and will also help you to contain a good hold over the market. The second part of the third step is making mone tary provisions. This is absolutely essential due to the fact that no business is risk-free. Such provisions include advance to the raw material supplier, insurance, provisions for bad debts, extra services, etc.Step 4 I would alike to call this step as retain, sustain and entertain. This step is quite an locomote one, and basically includes many different aspects, that aim at retaining the customers. The first important function of this step is to generate regular data and cash flow statements. With the help of these statements you will realize whether that very item on the menu is proving to be paying or not. At the same time, you also need to maintain a statement that records cash inflows and outflows over a eight-day period of time (in months or a quarter).Thus, you will realize what is profitable for your business, and what your customers want. To sum up the whole theory, it can be said that long term finance planning is a 3 dimensional graph, with customer, product and mar ket being the dimensions. The pump of cost and time are added to every dimension. After all, the key to successful long term financial planning is to facilitate all three dimensions logically, bearing in mind the essence of time and money. Read more at Buzzle http//www. buzzle. com/articles/long-term-financial-planning. html