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Naked Finance: Business Finance Pure and Simple

Book Description

Naked Finance: Business Finance Pure and Simple is a friendly, accessible, jargon-free guide that makes finance fun and interesting for ordinary humans-essential reading for all managers, not just the financial ones!

Table of Contents

  1. Cover Page
  2. Tite page
  3. Copyright Page
  4. Contents
  5. 1 What is naked finance?
    1. Why do managers need to understand finance?
    2. How is this book going to help me?
  6. Part One: Setting Financial Objectives
    1. 2 Is it all about profit?
      1. What does a business need to survive?
      2. What is the objective of financial management?
      3. What is profit?
      4. Is cash flow important?
    2. 3 How do you make profit?
      1. Where does the profit-making process start?
      2. Why do companies need shareholders?
      3. Why do companies borrow?
      4. Why do companies need assets?
      5. Why are companies obsessed with sales?
    3. 4 How do you measure financial success?
      1. How do shareholders measure success?
      2. How do managers measure success?
      3. Are there other commonly used measures of success?
    4. 5 Which are the figures that count?
      1. What are the four key figures in a business?
      2. How do the four key figures interrelate?
      3. What strategies will enhance the profit-making process?
  7. Part Two: Using financial information
    1. 6 Why produce financial statements?
      1. What is the role of financial statements?
      2. What does a balance sheet tell you?
      3. What does an income statement tell you?
      4. What does a cash flow statement tell you?
      5. Where do accounting scandals come from?
    2. 7 What can you learn from financial statements?
      1. What is the first thing you should look for?
      2. What can financial statements tell you about how a business is being managed?
      3. How do financial statements interrelate?
      4. How can financial statements be used to help manage a business?
      5. What are the danger signals to watch out for?
    3. 8 What can you learn from the financial press?
      1. How do you value a company?
      2. What determines share prices?
      3. How can you interpret the share price information of a publicly quoted company?
      4. How do you manage share prices?
      5. How do you determine the share price of a privately owned company?
      6. How do you value an unincorporated business?
    4. 9 How do you know if a company is being well managed?
      1. What is shareholder value?
      2. How do you know if a company is creating shareholder value?
      3. Why is shareholder value important?
      4. How can you measure the amount of shareholder value being created?
  8. Part Three: Providing financial control
    1. 10 How do you create a financial plan?
      1. Why have financial plans?
      2. What is the difference between a forecast and a budget?
      3. Can a budget ever be right?
      4. How do you create a budget?
      5. How do you agree on a budget?
    2. 11 How do you manage costs?
      1. What drives costs?
      2. How do costs affect the relationship between sales and profit?
      3. Is there an optimal cost structure for a business?
    3. 12 How do you manage sales?
      1. How can you ensure that sales will be profitable?
      2. How can you plan sales quickly?
      3. How can you decide if a sales plan is achievable?
      4. How can you evaluate alternative sales strategies?
      5. Why do businesses fail to make a profit?
    4. 13 How do you manage profit?
      1. What can you learn from a budget report?
      2. Why does actual profit differ from budgeted profit?
      3. Where is management action required?
      4. How is management action to be prioritized?
      5. How should you use a budget report?
    5. 14 What about cash flow?
      1. What is cash management?
      2. What is the link between cash management and profit management?
      3. How can you measure cash performance?
      4. Is there an optimal cash flow?
    6. 15 How do you manage cash flow?
      1. What are the main issues that affect cash flow?
      2. How do you manage inventory?
      3. How do you manage accounts receivable?
      4. How do you manage accounts payable?
      5. Should companies maintain high or low cash balances?
    7. 16 What about long-term projects?
      1. What is a long-term project?
      2. How do you argue the case for a long-term project?
      3. How do you evaluate the risk of a long-term project?
    8. 17 How do you decide if a long-term project is worthwhile?
      1. How do you make the accept/reject decision?
      2. What is return on investment?
      3. What is payback?
      4. What is net present value?
      5. What is internal rate of return?
  9. Part Four: Summary
    1. 18 How do the pieces fit together?
      1. How do you manage a profitable business?
      2. A parting thought
  10. Index