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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