Business Activities

  

Business activities are any activities designed to make a profit.

In terms of accounting, these activities can be categorized three ways: operational, investing and financing.

All the cash created and/or used for these activities is recorded on the cash flow statement. The first chunk of the cash flow statement includes cash made from operating activities. The second is investing, but only if it can be capitalized in under one year (in essence, cashed out in a year or less, versus a long-term bond, for example). Last is financing, which includes cash paid out for stock dividends, interest, share repurchases, debt financing, and even fundraising.

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Finance: What is a Business Plan?6 Views

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Finance allah shmoop what is a business plan Well think

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of it like blueprints for building a home or a

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directions for toll house cookie baking or the process for

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howto you know get pregnant let's get down to business

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time anyway A business plan is just the game day

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strategy for how your little garage startup will grow to

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someday be a google or facebook or even little old

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shop You'll describe the product like a pill that cures

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cancer Yep some products are easy to describe Like if

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you actually had a pill that cures cancer while you'd

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pretty much be done you could have a one page

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business plan that just says i have a pill that

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cures cancer Your eight hundred seventy six people on whom

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it has worked Now give me billions of dollars and

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a nobel prize night and you'd be done But if

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you only had a flying car well then you describe

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it well How much weight it khun carrie how fast

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and far it goes how it navigates and avoids crashes

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and how it recharges and stuff like that That's the

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product then there's the place or distribution Like how you

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get the car out to the masses you want to

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sell it to like are you partnering and paying ford

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to stock it in their showrooms Are you leveraging starbucks

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places teo You know showcase it Get buzzed while you

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buzz about that Or do you just have a mail

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order website Customers pay with a credit card and a

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delivery agent applies it to your home You know kind

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of like tesla All right Next up promotion Like how

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do you market your product Or is it just so

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cool that the press writes about it endlessly fawning and

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all that digital ink is free Well if the products

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all over the covers of the new york times and

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yusa today well you're kind of marketed everyone in the

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country knows about it All right Well then there are

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the finances Like how much does a unit cost So

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this is all about price How much is the factory

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that stamps out the carriage The blades of the battery

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Well if you sell a hundred units a month you

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make what What should they be Priced at fifty grand

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Each one hundred two hundred fifty grand if you sell

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Ten thousand a month Well how much do you make

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How much capital do you need thio field all that

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get through your first two years and then how much

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to get to break even profitability and and so on

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Is there a ny po in the future Yeah yeah

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what about that That should be in the plan Well

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