If I were to establish a business, it would be a computer shop.

Also, in establishing that I would

1. A Business Idea

Every business starts with an idea – a super duper idea that actually works. If you want
your business to stand out, you will need to offer something that no one else has offered till date

2. Knowledge or Expertise

Once you know what business you want to start, you will have to start gaining the required
knowledge and expertise to start that business. This might take a lot of research and planning; but
at the end all these efforts will ensure that you have everything in place to get your business idea
off the ground.

3. Market or Demand

Once you are sure of starting your business, your next step would be to explore the market or the
demand for your product or service. Start by answering the question, who are your customers. If
you are selling your product or service locally, you may have to assess the demand for it. In case
you are taking up on an international level, you may have to understand the rules and regulations
of dealing internationally.

4. Start-up Costs

Estimating your start-up costs is one of the very important things to consider when starting a new
business. You will have to assess the total cost that is required to set up and run your business
successfully.

If you are thinking of starting a manufacturing plant, your start-up costs could be very high. You
may have to think about the cost of the land or building, setting up the plant, buying the
equipment and machinery, investing in furniture and office equipment, and various other things.

In case of a retail business, you may still need to think of the cost of the store as well as the
furniture required to decorate it. An office can be started with relatively lower cost since all you
may have to invest would be in furniture and office equipment.

5. Capital and Finance

No business in this world can run without money. Depending on the type of business you are
starting and the initial costs that you will have to pay up for, you will know what kind of capital
you would need to start your business.

Whatever steps you take, to finance your business, you will have to make sure you have the
required funds to take you through the startup phase.

The financing pattern is one of the most important factors to consider before starting a business.
This generally includes the capital that you can introduce from your savings as well as the funds
that you can borrow.

6. Competition
Unless you know who your competitors are and what they are doing, you will not be able to
survive in the market for long.

If your product is a monopoly competition will not matter. Else, you will have to come up with an
excellent strategy to fill in the demand and supply gap.

Gaining a market share should be on top of your mind if you are about to start a business. If there
is a huge demand for your product, this shouldn’t be too difficult. If not you may have to
strengthen the position of your business to gain an entry into the competitive market.

7. Location

One of the most important things needed to start a business is a good location. If yours is a retail
business you will have to look for a well-populated area that is easily accessible.

If it is a manufacturing unit you can choose a location that can let you save money on electricity,
water, taxes, and transportation. Look for a place where manpower is easily available and raw
materials can be sourced easily. You can even look for a location that can get you rebates and
subsidies from the government.

If yours is a niche product or a service, you may have to look for a single location where all your
competitors are. For instance, if it is a software company you want to start, you may have to look
for a software belt where all other software companies have set their shops. Similarly, the ideal
location for a gold vendor / jeweler would be a gold mart that has housed many such shops.

8. Staff

Your staff members are the ones that can make or break your business. Without efficient
manpower no business can ever succeed. That said an efficient staffing strategy needs to be in
place if you want to reduce your staff replacement expenses.

You can hire a recruitment agency or use various recruitment tools to fill in your positions with
the right talent. There are also a number of websites that make it easy to find the exact kind of
people you are looking for. Signing up for a couple of these can make your job, both easy and cost-
effective.

9. Technology

Technology is one thing you can never compromise on when it comes to starting a new business in
today’s world.

Whether it is office equipment, plant and machinery, or the software required to monitor your
business, you will have to make sure it helps your business to perform well in the long-run.

A financial intermediary is an entity that acts as the middleman between two parties in a financial
transaction, such as a commercial bank, investment bank, mutual fund, or pension fund. Financial
intermediaries offer a number of benefits to the average consumer, including safety, liquidity, and
economies of scale involved in banking and asset management. Although in certain areas, such as
investing, advances in technology threaten to eliminate the financial intermediary,
disintermediation is much less of a threat in other areas of finance, including banking and
insurance.

A non-bank financial intermediary does not accept deposits from the general public. The
intermediary may provide factoring, leasing, insurance plans, or other financial services. Many
intermediaries take part in securities exchanges and utilize long-term plans for managing and
growing their funds. The overall economic stability of a country may be shown through the
activities of financial intermediaries and the growth of the financial services industry.

The fundamental difference between Financial Accounting and Financial Management is that
financial accounting is the process of recording, maintaining, and reporting the company’s
financial affairs that depict the company’s clear financial position. In contrast, financial
management refers to managing finances and investment opportunities of different individuals,
organizations, and other entities.

Financial management is the practice of making a business plan and then ensuring all departments
stay on track. Solid financial management enables the CFO or VP of finance to provide data that
supports creation of a long-range vision, informs decisions on where to invest, and yields insights
on how to fund those investments, liquidity, profitability, cash runway and more.

The view that firms (managers) behave as if their goal is to increase shareholder wealth is the
shareholder-wealth-maximization principle. While many might agree this principle governs
managerial behavior, it continues to arouse intense scrutiny, adoration, and condemnation. We
begin by summarizing the economic rationale behind and the welfare consequences of managers
pursuing this principle. Friedman (1970) encapsulates the principle by imploring managers as
shareholders’ agents to “conduct the business in accordance with their desires, which will
generally be to make as much money as possible while conforming to the basic rules of the society,
both those embodied in law and those embodied in ethical custom.

The financial management and the production department are interrelated. The production
department of any firm is concerned with the production cycle, skilled and unskilled labour,
storage of finished goods, capacity utilisation, etc. and the cost of production assumes a substantial
portion of the total cost.

The financial manager's responsibilities include financial planning, investing (spending money),
and financing (raising money). Maximizing the value of the firm is the main goal of the financial
manager, whose decisions often have long-term effects.

The basic objective of the investment, financing, operating, return of capital activities or decision
making roles of the financial managers on the stability and growth of the business firm is to
maximize its shareholder’s wealth.
PLDT investors will most likely to be aggressive and will be disappointed. Some may pull out their
investments. It will also affect its stock price to go downward because of that many will suffer lost
based on the market assessment and on information available to the company that PLDT is
revising its profit guidance.

One of the most important financial decisions that a Financial Manager must make is related to the
company’s dividend policy. It concerns how much of the company’s earnings will be paid out to
shareholders. Specifically, it is necessary to determine if generated earnings will be reinvested in
the company to improve operations or if they will be distributed among shareholders. It is also
possible to choose a mixed policy in this regard, distributing a part among shareholders and
investing the rest in the company.

The essential difference between the maximization of profits and the maximization of wealth is
that the profits focus is on short-term earnings, while the wealth focus is on increasing the overall
value of the business entity over time.
One of the main importance of financial planning is that it helps organizations to achieve their
goals. It identifies and prioritizes the financial goals of your business and enhances decision-
making to achieve the established goals. In the process of creating the financial plan, you must
tailor your plan with your business’s financial goals.

The steps in Financial Planning Process are: Setting of corporate goals and objectives, Develop
long term financial plans, Develop short term financial plans, Developing individual budget,
Developing consolidated budget, and Determining contingency plans.

Although budgeting and financial forecasting are often used together, distinct differences exist
between the two concepts. Budgeting quantifies the expectation of revenues that a business wants
to achieve for a future period, whereas financial forecasting estimates the amount of revenue or
income that will be achieved in a future period.

The single most important element in the forecasting process is the Sales Forecast. Generally,
Sales drives everything else; it is what determines the expense spending plan. If the company is a
manufacturing company, the sales forecast will drive the production plan.

Working capital management can help you avoid cash flow problems that could pose a major
financial risk to your business, but it's also crucial to help you grow. When executed well, it can
help you achieve a higher rate of return on your capital, increasing profitability, value
appreciation, and liquidity all at once.

Accounts Receivables Management denotes to make decisions relating to the investment in the
current assets as vital part of operating process, the objective being maximization of return on
investment in receivables. It can be established that accounts receivables management involves
maintenance of receivables of optimal level, the degree of credit sales to be made, and the debtors'
collection.

Inventory management is basically related to task of controlling the assets that are produced to be
sold in the normal course of the firm's procedures. In supply chain management, major variable is
to effectively manage inventory. The significance of inventory management to the company
depends on the extent of its inventory investment.

Cash flow management means tracking the money coming into your business and monitoring it
against outgoings such as bills, salaries and property costs. When done well, it gives you a
complete picture of cost versus revenue and ensures you have enough funds to pay your bills
whilst also making a profit.

The most important benefit if financial statement analysis is that it provides an idea to the
investors about deciding on investing their funds in a particular company. Another advantage of
financial statement analysis is that regulatory authorities like IASB can ensure the company
following the required accounting standards. Financial statement analysis is helpful to the
government agencies in analyzing the taxation owed to the firm.