Understanding Small Business

1. On-Line Small Business Workshop, http://www.smallbusinessbc.ca/workshop/

Financing Your Business.

• What is "leverage"?
• Explain the differences between "debt" and "equity".
• What is meant by ‘abusing your loan privilege’?

2. Business Channel, http://www.business.channel.vic.gov.au/

Business Life Events.     Starting Your Business.     Intending to Start a Business.     Finding Start-up Capital.   

Business Establishment Costs.

• Classify the costs of establishing a business into four types. Compare these groups to those suggested in Chapter 4 Starting Up.
• What should be the basis for determining which costs should appear on a balance sheet and which ones in an income statement (profit and loss statement)? Give examples.
• Shouldn’t the "costs" allow for the starter’s reward for say the first 12 months? Discuss.

Applying for a Bank Loan.

• List the suggestions under the headings of the four "Ps" for making a lending proposal in the chapter.
• Compare the information to the listing in Table 8.2 (Lenders’ Requirements Checklist).

Business Life Events.     Planning for Growth.     Business Planning.     Plan Your Own Business.

This information booklet  is the business plan for the commencement of Canterbury Renovations Pty. Ltd. by Frank and Julie Walter. As financial adviser to the Walters you have been asked to critically evaluate the financial aspects of their plan. Prepare your notes in preparation for an interview with them in a week’s time.

• Evaluate the use of initial funds for the five major purposes outlined in the chapter (Why are funds needed?).
• Evaluate the types of finance to be used.
• Evaluate the renting of premises and the undertaking of some manufacturing work at the owners’ home.
• Evaluate the succession plans for the business.
• Compare the plan to the seven guides for sound financing.
• Make your recommendations to the Walters for the management of the finance function of the business at the start and subsequently.
• Overall, how many points out of 10 would you rate the business plan? (refer to Chapter 6 Planning the small business)).

3. Bank Choice, http://www.infochoice.com.au/

This site provides daily details of business lending rates for financial institutions within each State. Obtain the following information for your own State.

Business Loans.

• Terms available for business and commerial loans and comparative interest rates and charges.

Personal Loans.

• Terms, rates and charges for personal loans.

4. Increase your knowledge of various types of debt by referring to the sites below and corresponding items. For each item make your notes, as far as you are able, regarding the five factors that affect the suitability of forms of finance for small firms - costs, risks, flexibility (include term of debt), control and access.

ANZ Banking Group Ltd., http://www.anz.com.au/

Business Finance.

• Commercial bill
• Business overdraft
• Business loan
• Business mortgage loan

Westpac Banking Corporation, http://www.westpac.com.au/

Business Banking.     Finance and Capital.

• Equipment and Insurance Finance.
• Long-term Finance.

Commonwealth Bank of Australia, http://www.commbank.com.au/

Business Centre.    Products and Services.      Loans.

• Better Business loan
• Capital equity

Adelaide Bank, http://www.adelaidebank.com.au/

Business Banking.

• Business Term loans.
• Overdrafts.
• Business Line of credit

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Copyright © 2008 Understanding Small Business
Last modified: 03/07/08