The document discusses finance, funding, and dealing with banks for business purposes. It addresses what customers and banks want from each other. It then covers calculating business finances like determining revenue needs, profit margins, and customer conversion rates. The document also discusses cash flow, accessing bank accounts, funding sales and purchases, managing payments, and maintaining stock levels. Overall it provides an overview of important financial considerations for business owners.

1. Finance, Funding & Dealing
with Banks
Dr. David Bozward
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

2. T: @eMotivator W: http://david.bozward.com E: david@bozward.com

3. What do you want from your
bank?
What does your bank want
from you?
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

4. Banks are....
The are: Business Model
• Safe Place to leave • Transactions
cash • Interest Payments
• Local Networking • Extra charges
• Sounding Board • Extra products
• Electronic Payments – Insurance
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

5. Your Offer
• You and your skills/talent/capabilities
• The “What’s in it for your customers”
factor
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

6. Your Sales
• What skills and attributes make a good
sales person?
• People buy from people.
• Emotion and Logic
• Good Feelings or Solutions to problems
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

7. Your Sales
• Outstanding Service.
• Appalling service.
• What aspects of great service can you
use for your own business ideas?
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

8. Your Finance
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

9. Your Finance
• Where do we start?
• Why are you in business?
• You need to make money.
• How much?
• Enough to cover your costs.
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

10. Working your Finances Out
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

11. Example 1
• You have household bills of £1000 per
month.
• All earnings are profit.
• Need to earn £12000 to survive per
year.
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

12. Example 2
• You have household bills of £1000 per
month.
• Half earnings are profit.
• Need to earn £24000 to survive per
year.
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

13. Example 3
• You have household bills of £1000 per
month.
• 75% earnings are profit.
• Need to earn £16000 to survive per
year.
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

14. Example 3
• For every £1 you earn keep 75p to put
to bills
• Bills total £12000 for the year.
• Therefore how many 75p’s do you
need to earn?
• £12000/0.75= £16000
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

15. More useful info
• What is the expected average sale
value?
• What proportion of customers will buy
from you?
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

16. Your Finance
Survival. (£12000)
Profit. (£0.75p)
Turnover. (£16000)
Average sales value. (£400)
Number of sales. (40)
Number of customers to see to get 1 sale. (1 in 10)
Number of people need to speak to, to survive. (400)
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

17. Your Finance
No of people need to speak to = 400.
No of customers to see to get 1 sale (1 in 10).
Number of sales = 40.
Av sales value = 400.
Turnover = £16000.
Profit = 75p in £.
Survival = £12000.
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

18. Now..
CREATE YOUR FINANCES
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

19. Your Finance
• Making money is good however cash is king.
• What do you really need to set up your business?
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

20. Cash Flow
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

21. Funding
Money
Goods/Services
exchanged for Used to
money acquire
resources
(stock)
Resources used to
produce goods or
services
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

22. But...
TIME, TAX, DEBT, BANKS,
..ETC TO DEAL WITH... HELP!
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23. T: @eMotivator W: http://david.bozward.com E: david@bozward.com

24. Accessing Accounts
• Online / Telephone
• Payments
– What, when
• Current transfers
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25. Funding your sales
“Run Rate”
• Living Costs
• Marketing
• Telephones
• Travel
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

26. Receiving Payments
“Timings+Costs”
• 30 Day Invoice
• Paypal
• Bank Transfers
• Bad Debt
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

27. Managing Money
• Money in
• Money Out
• When to spend
• When not to spend
• Why spend
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

28. Making Payments
• Yourself
• Government
– VAT
– Tax (Corp)
– Tax (PAYE)
• Adverts
• Insurance
• Repairs/Maintenance
• Telephone/Rent/..
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

29. Funding Purchases
• Credit Card
• Overdraft
• Loan
• Factoring
• Shareholders
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

30. Stock
• In - On Order
• Out – Planned work
• On Hold
T: @eMotivator W: http://david.bozward.com E: david@bozward.com

31. Create your own
1 to 30 days
Cash in Bank
Living Expenses
Stock Balance 1 to 30 Days
Credit, Debt, ...
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32. T: @eMotivator W: http://david.bozward.com E: david@bozward.com

33. Summary
T: @eMotivator W: http://david.bozward.com E: david@bozward.com