In examinations, students could be asked to evaluate ways a business could improve profit or reduce costs. This resource looks at the options available to businesses in a simple way using numbers/ percentage changes. Students are then encouraged consider the implications of the various options. This resource could be used as the basis of a whole class discussion, or set as individual/ paired work. Students could be asked how elements of the profit and loss account have been calculated, and to create their own ‘what if’ examples.

This presentation provides a very visual overview of the different sources of finance available to businesses. It covers internal v. external sources, what is meant by short, medium and long term finance and which types are suitable in different business contexts. A ‘Sources of Finance At a Glance’ worksheet is also available.

This resource can be printed and given to students to have a go at themselves, or put on the board and used as a simple demonstration to help them to understand the process of cashflow forecasts (answer is included!) The pre start column is included on this template to encourage students to review their learning on start up costs and sources of finance. They should be encouraged to use the total column as a way of checking their calculations. Additional, more challenging resources are also available.

Huw is growing his catering business. It is worth him taking out a loan to purchase a new van? This case study provides data that allows students to create a cashflow forecast and to explore what if scenarios. They are encouraged to analyse and discuss the potential outcomes for the business. A spreadsheet is included.

This activity/ exercise challenges students to create firstly a start up year 12 month cashflow forecast for a business, followed by a year 2 12 month cashflow forecast using data provided. The idea is to get them used to the cashflow process - creating and calculating a cashflow table - and to encourage them to think about the challenges businesses face when payments have to be met at different times of the year and the fact that cash inflows can also fluctuate. Use the answers to discuss the financial position of this business. What should the owner plan for/ when? Where did the numbers likely come from? Are they likely to be accurate? This is a budget - what can they do to ensure that this is as realistic as possible etc. etc. Included in the pack are some notes on cashflow forecasting, data for 2 years (separate exercises), a blank excel spreadsheet that can be printed for a written exercise, an excel spreadsheet with formulae included, and the answers.