OCR Level 2
Cambridge Technicals
in Business
Unit 3: Financial
Forecasting for
Business
What’s the link?
What do the following people have in common?
The answer is :
Michael
Abraham
Walt
Disney
Elton
John
John
Barnes
Joe
Swash
Mike
Tyson
George
Best
Barrymore
Kerry
Katona
Lincoln
They have all filed for bankruptcy!
Planning ahead
is particularly
It is This
always
difficult to true in
Even60%
profitable
companies
business
of
plan
for thewhere
future:over
it
and
organisations
can
allisnew
business start
ups
will
by definition
face unexpected
fail in their first year!
unknown!
circumstances which can
threaten their business
stability if not managed
adequately.
Why is financial
forecasting important?
The number one cause
for business failure is
often stated as being poor
cash flow management
and financial forecasting.
Good cash flow
management will help a
business be prepared for
those unexpected hiccups
by knowing in advance
where the more difficult
periods are.
What will you learn?
After completing this unit you will:
Know about costs,
revenue and profit
in a business
organisation
Be able to create
a cash-flow
forecast
Be able to
prepare a break
even analysis
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