The aim of this case study is to provide a basic theoretical understanding about financial business planning in the field of start-up companies and also for business case purposes within running ventures. In conclusion, there shall be a controversy discussion about different financial success factors and the associated risks and limits in order to persist on competition. In addition to that, there will be a transfer into a practical example to apply the theoretical knowledge. The final approach is a critical evaluation about the topics regarded.
Entrepreneurship is enjoying ever growing popularity, most likely due to the idea that it is only possible to develop the own personality through a self-determining activity. A business start-up establishes for the founder the highest degree of individual personal development and complacency. Thus, it is not surprising that especially for the younger generation this topic become more and more in the center of attention. Furthermore, independent or freelance activities may provide both personal fulfillment and an opportunity of more income.
All companies require capital, to invest in plant, machinery, inventories, accounts receivable, and all the other assets it takes to run a business. The topic finance planning has an essential importance in the context of business planning. It summarizes all textual descriptions of the business plan into clear interpretable numbers. Potential and value of a business idea has to be clearly visible and identifiable. Based on a detailed planning the capital requirements arise, which is needed to derive the necessary type of funding.
Due to the fact that most start-ups are characterized by relatively high risk of fail and a huge need of capital by the founder, which can cause an existential personal threat, a detailed and realistic finance plan is mandatory. For the existence of a start-up, it is essential to have always available and sufficient liquidity and it constitutes therefore a fundamental motive for a corporate financing.
Inhaltsverzeichnis (Table of Contents)
- EXECUTIVE SUMMERY
- RESEARCH DESIGN.
- Methods of Data Collection
- Content Analysis.
- Market Research
- Knowledge of the Industry.
- Assumptions
- Restrictions of Data Collection.
- Framework of the Research.......
- Subject of the Research.............
- Differentiation of Central Terms..
- Central General Terms
- Finance
- Finance Planning.
- Business Plan
- Business
- Small and Medium-Sized Companies.
- Start-Up.........
- Success Factors......
- Central Financial Terms.....
- Income
- Expenses
- Assets
- Earnings.
- Liabilities
- Liquidity.
- Equity..
- Depreciation.
- Cash Flow..
- BASICS OF FINANCIAL PLANNING
- Basic Principles
- Requirements of Finance Planning
- Framework of Financial Reporting and Planning.
- Selection of Legal Form.
- Start-up Funding.
- Information Processing....
- Determinants of Information Needs..
- Uncertainties....
- Estimations.
- Environmental Analysis..
- Industry and Competition Analysis
- Financing Options .........
- External Financing
- Equity Capital........
- Mezzanine Financing
- State Subsidies...\n.31
- Leasing, Rent and Hire Purchase
- Inheritance.......
- Alternative Finance Options.
- Calculation Elements .....
- Market Size and Sales Revenue
- Payroll Expense......
- Insurance Expense
- Depreciation........
- Taxes.......
- Methods of Valuations
- "Stuttgarter Verfahren”.
- Multiplier Methods..
- Discounted Cash Flow Method
- Business Ratios.
- Net Present Value......
- Valuing a Start-Up....
- FINANCIAL SUCCEESS FACTORS......
- Introduction
- Direct Factors ...........\n.39
- Qualification of the Entrepreneur.
- Moral, Ethics and Honesty
- Set of Figures
- Cost Structure…....
- Visualization of Mathematical Correlations...\n.41
- Credit Discussions
- Flexibility...\n.42
- Risk and Back-Up .....
- Consultancy and Customers Voice
- Organizational Framework.
- Plausibility.
- Paranoia
- Indirect Factors
- Business-Case-Marketing..\n44
- Misjudgements........\n44
- Learning from Mistakes..\n44
- Sustainability and Long-Term View.\n44
- Innovativeness....\n.45
- Investment in Knowledge.\n.45
- Investment in Talented People..\n45
- Inventive Spirit ........\n46
- Protection of Intellectual Properties ....\n46
- PRACTICAL EXAMPLE….....
- Design of the Finance Plan........\n.47
- Financial Plan\n.47
- Calculation Approach
- Income.....\n.48
- Expenses.\n49
- Gross Profit...\n52
- Financing.\n56
- Miscellaneous.\n57
- Ratios\n.57
- Earnings\n.58
- Analysis and Interpretation\n.60
- Scenario and Sensitivity Analysis.......\n.62
- Financial SWOT Analysis..........\n.63
- Evaluation of Gathered Data..\n63
- CRITICAL EVALUATION...........
- PERSPECTIVE AND GUIDANCE\n.66
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research aims to examine the role of financial business planning as a success factor in competition, particularly in the context of small and medium-sized enterprises (SMEs). The study delves into the significance of financial planning in achieving business success and addresses its impact on an organization's competitive advantage.
- The importance of financial planning for business success
- The impact of financial planning on competitive advantage
- Key elements of a successful financial plan
- The challenges and opportunities associated with financial planning in a competitive environment
- Practical applications of financial planning for SMEs
Zusammenfassung der Kapitel (Chapter Summaries)
The research begins with an overview of the research design, methodology, and key terms. Chapter 2 focuses on the basics of financial planning, exploring the principles, framework, and key considerations for effective planning. Chapter 3 delves into the specific elements of financial planning, including information processing, financing options, and calculation elements. Chapter 4 examines the financial success factors, both direct and indirect, that contribute to a company's overall success.
Schlüsselwörter (Keywords)
The main keywords and focus topics of this research are financial business planning, success factors, competition, small and medium-sized enterprises (SMEs), financial planning, competitive advantage, financial planning elements, financing options, and financial success factors.
- Quote paper
- Patrick Lukasiak (Author), 2019, Financial business planning as a success factor on competition, Munich, GRIN Verlag, https://www.grin.com/document/471480
