1. Cash Flow Management - What factors are involved in cash flow management as they relate to various payment methods? What kinds of payment terms might the business venture have with its vendor to help manage its cash flow? Suppose you own a small business. Why might it be more beneficial to accept: debit or cash versus a credit or check payment?
2. Increase Sale & Control Costs - What are some of the differences in problem-solving techniques as they relate to increasing sales and controlling costs? How does a small business keep a balance of increasing sales while controlling costs? Suppose you manage a small business and notice that sales are high, but costs are higher. What areas would you look at changing to create a more profitable business?
3. Measure Long Term Success - What data might be used to distinguish short-term success or failure versus long-term trends when measuring financial performance in a small business? Why is it important to look for long-term trends, even if things are looking great for the short term? Provide an example of a situation where the short-term success of a business is doing well, whereas the long-term trends are pointing towards future decline. What would you do to change the long-term trends into something more positive for that company?
4. Financial Components - What are the most important financial components to track to determine the success of a small business? Explain why. Provide an example of a company with a high volume of sales and a low profit margin, and provide an example of a company with a lower volume of sales, with a higher profit margin? Which company is more financially successful and why?