BUSINESS OPPORTUNITIES IN THE GLOBAL ECONOMIC RECESSION August 20, 2009
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Transcript of BUSINESS OPPORTUNITIES IN THE GLOBAL ECONOMIC RECESSION August 20, 2009
BUSINESS OPPORTUNITIES
IN THE GLOBAL ECONOMIC RECESSION
August 20, 2009
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TODAY WE WILL LOOK AT THE FOLLOWING
Entrepreneurship
Opportunities
Caution!
Starting a Business
Financing
ENTREPRENEURSHIPis the practice of starting
new organizations or revitalizing mature
organizations
in response to identified
opportunities
Wikipedia
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Entrepreneurship ranges in scale from solo projects
to major undertakings creating many job opportunities
AND is often a difficult
undertaking, as a vast majority of new businesses fail
Many kinds of organizations now exist tosupport would-be entrepreneurs including
JAMAICA TRADE & INVEST the lead implementing agency for the
EU/GOJ funded PSDP Programme
CFBERU
EC/BIPS
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OPPORTUNITIESImport Substitution
Tourism Sector
Alternate Energy
Agriculture/Agro Businesses
Marketing
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CAUTION!Most new businesses are not started by
entrepreneurs who set out to build a strong business
but by technicians who enjoy the hands-on work themselves
Most business owners focus on
working in their business
when really they should be
working on their business.
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A business that is built and managed by
someone who combines the approach of
TechnicianManager
Entrepreneur will have a far greater chance of future
SUCCESS than one guided by someone thinking like a
technician Michael E. Gerber – THE E-MYTH REVISITED – Why most small businesses don’t work and what to do about it
STARTING A BUSINESS• The Business Idea• The Business Objective• The Business Strategies• The Implementation of the Business
Machinery, Equipment, fixtures and fittings
EmployeesLocationThe MarketDistribution channels/SalesBusiness Registration
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BUSINESS REGISTRATIONSole Proprietorship/Trader
PartnershipLimited Liability Company
OTHER REGISTRATIONSPAYE
H.E.A.R.TNISNHT
ED. TAXGCT
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OTHER REQUIREMENTSBanker
Accounting Services
Attorney-at-Law
Business Consultant
Technical Consultants
Trade Associations
Custom Broker
FINANCINGOwners’ Equity
Angel Funding
Venture Capital
Grants
Loan
The Junior Stock Exchange
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THINK ON THESE THINGS!
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CASH FLOW MANAGEMENT
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TODAY WE WILL LOOK AT THE FOLLOWINGCASH FLOW
CASH FLOW ANALYSIS
CASH FLOW GAP
CAUSES/SYMPTOMS
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CASH FLOWIs essentially the movement of money into
and out of your business
It is the cycle of cash inflows
and cash outflows
that determine your business' solvency.
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CASH FLOW ANALYSIS
Is the study of the cycle of your business' cash inflows and outflows
If the total unpaid purchases are greater than
the total sales due
Expenditure will be more than you receive in the next month
This is a potential cash flow problem
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Cash flow analysis involves examining the components of your business that affect
cash flow such asAccounts receivable
InventoryAccounts payable/credit terms
By performing a cash flow analysis you'll be able to more easily
identify cash flow problems and find ways to make improvements
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The first step of cash flow management is to
perform a cash flow analysis (cash flow
forecasting) regularly
so that necessary steps may be taken to head
off cash flow problems
Many software accounting programs have
built-in reporting features that make cash
flow analysis easy
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CASH FLOW GAP
When cash inflows and cash outflows don't keep pace with each other, leaving business short of cash.
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CLOSE THE CASH FLOW GAP BY THE FOLLOWING:
1) Prepare customer invoices immediately upon delivery of your goods or services to the customer
2) Monitor the use of credit by customers
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3) Offer customers a discount for paying invoices early.
4) Establish a deposit policy for works in progress.
5) Track past-due accounts
6) Actively pursue collections.
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Regular inflows of money is required to maintain an adequate cash flow for
Business
Monitoring the cash flow Taking steps to shorten your cash flow
conversion period will assist in eliminating
dangerous cash flow gaps
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CAUSES/SYMPTOMSCASH FLOW MANAGEMENT WILL HELP THE
MANAGER TO MONITOR
Marketing Strategies
Sales/Sales Team
Production
Inventory of Raw Materials
Inventory of Finished Goods
Services
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UNIT/JTI
Offers
Business Development Services
for the development of
Business Plans (complete with Cash
Flow Projections, Projected Balance Sheets
& P&L Statements)
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Please contact us at:
JAMAICA TRADE & INVEST
2ND Floor
18 Trafalgar Road
Kingston 10
978-7755 9 or 978-3337
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