Revenue and Cash Flow

a) Define what Revenue and Cash Flow mean

b) Explain the difference between Revenue and Cash Flow, and why this is critical in managing a business

c) What is the 20/80 versus 80/20 mistake which entrepreneurs often make when completing their financial forecasts?

d) Why is there a natural tendency for an entrepreneur to make the above mistake?

e) What are the other 2 mistakes which inexperienced entrepreneurs also often make when forecasting revenues?

f) What does “EBIT” mean?

g) How is EBIT different from Net Income?

h) In your opinion, is EBIT or some other figure the best key measurement of a business’ financial performance? Why?

i) What are the 6 (six) sections in a traditional Business Plan document? 

j) Explain in detail what each section should contain and how/why that informtion is important

One of your very good friends has been successful in starting up a new business recently. Now that the business has already started, he/she has asked for your advice He/she would like to know what you believe are the 3 (three) most important things for an entrepreneur to focus on in managing the business after it has been launched, on a day-to-day basis and for the future. He/she would also like you to explain why you think that the manager(s) of a successful small/medium sized business should concentrate on these 3 most important activities.Write an email reply to your friend, using about 500 words (or more if you wish to, and have time), to answer these requests.

Explanation & Answer length: 10 questions 500 Words Email