3.11 Estimate the Financial Needs for Your Business

1. Evaluate financial options to fund your business

1.1

Calculate all the potential costs associated with setting up your business

1.2

Assess the benefits and drawbacks of different ways of funding your business

1.3

Choose the most viable and suitable ways to finance your business

2. Understand how to monitor income and expenditure against your business objectives

2.1

Prepare forecasts, estimates and projections on all aspects of income and expenditure for your business, including producing a financial break even analysis

2.2

Set business and financial objectives which are realistic, achievable and measurable

2.3

Choose the systems that will be used to keep appropriate and efficient financial records for your business

3. Understand how to monitor profit and loss for your business

3.1

Calculate realistic profit margins for your business

3.2

Calculate the projected gross and net profit for a minimum 12 month trading period

3.3

Explain how profit and loss statements and balance sheets can help to monitor the financial success of your business each year

Unit aim(s)

Details of the relationship between the unit and relevant national occupational standards (if appropriate)

• MN1 : Decide on the financial needs of your business

Details of the relationship between the unit and other standards or curricula (if appropriate)

Not applicable

Assessment requirements specified by a sector or regulatory body (if appropriate)

Assessment to be based on naturally occurring evidence or realistic work environment

Endorsement of the unit by a sector or other appropriate body (if required)

Supported by SFEDI

Location of the unit within the subject/sector classification system

Name of the organisation submitting the unit

OCR

Availability for use

To be used only by the following partners engaged in the SFEDI Framework project when developing Business Enterprise Qualifications

CMI, Edexcel, IAB, ILM, NOCN, OCR, VTCT