Franchise Services Demystifying fi nance
Are you ready to be a scientist? Rob Orme of Franchise Finance puts money management under the microscope
I
f you type ‘defi nition of fi nance’ into Google, you’ll fi nd something along the lines of: ‘fi nance is defi ned as the science of money management’. The words ‘risk’, ‘reward’ and ‘uncertainty’ also crop up a fair bit. It’s true, there is a great deal of science to business fi nancials. A key area for Franchise Finance is the ‘science’ of fi nancial forecasting. You may read this and think: ‘Aren’t
forecasts just fi nger-in-the-air guesswork?’ Well, not entirely! Fundamentally, you are predicting future performance, so you can never have 100 per cent certainty. There is, however, a great deal that can be done to produce forecasts that are as
realistic and accurate as possible. Being scientifi c can help minimise risk and uncertainty, while simultaneously enhancing the likely reward that can be achieved by a business owner. How can you be a scientist? It’s not about putting on a lab coat and pair of safety goggles! It’s about looking at existing data from a variety of sources, scrutinising the raw data and making decisions based on evidence.
The key assumptions for any new business owner to focus on are sales, cost assumptions and cashfl ow ins and outs. Take these fi gures, do a sense check, and then structure your projected profi t and loss account, cashfl ow forecast and projected end-of-year balance sheet accordingly. Being scientifi c helps you avoid two very common fi nancial pitfalls: • Overambitious, unrealistic projections • Conservative projections that do not represent just how attractive or viable your business venture actually is So, before you get out your crystal ball
and start punting fi gures around, stop and think – what would a scientist do? They would analyse the data they have to work with. As a ‘new scientist’ you need to do this too. Being a scientist isn’t always easy.
If you’re in need of some guidance, Franchise Finance would be delighted to help. It can assist you with your forecasts and projections or you could join one of its many business academy training courses that can demystify the science of fi nance and you can become a scientist yourself! Franchise Finance helps franchisees and franchisors on their business journey with arranging fi nance, business planning and training needs.
Franchise Finance Finance services
www.franchisefi
nance.co.uk info@franchisefi
nance.co.uk 01844 355 575
£50M LENDING FUND YES £50 MILLION!
**
* ** *
Including Loans, HP and Leasing deals At competitive rates
Allocated to the Franchise Market through Franchise Finance Limited* Example uses:
Decisions normally within 48 hours For amounts between £5,000 and £500,000 With up to 5 year Repayment Periods
For you to use for buying or growing your business
*Subject to terms and conditions and normal credit checks
To apply for funding please Email or Telephone us:
info@franchisefinance.co.uk www.franchisefinance.co.uk
01844 355575
Raising Loan Finance Store Purchase or Expansion Refurbishment Rebranding Working Capital Stock Finance
Signage and Security Air conditioning and Lighting EPOS, Telephone or Computer Equipment Fridges, Freezers and Chillers Display Cabinets, Counters & Shelving Vending Equipment Commercial Vehicles
Do ask us if you do not see here what you need! Franchise Finance Limited is Authorised and Regulated by the Financial Conduct Authority June 2018 |
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