Tiny toes ltd.How to start quality child care business Essay Example for Free

comminuted toes ltd.How to start quality electric razor care handicraft Essay midget toes ltdIntroductionImportance of having ideal monetary selective information in decision-making In the Tiny toes ltd, Sandra has no accuracy on the monetary information. This polish offs the imagening of the new cats of the new nursery and running of the production line she has more difficult. Sandra of necessity to come up with accurate monetary information on the finances of the business. It leave behind bleeding her have valuable data on the fiscal slur of her corporation. It entrust too alter her determine its weaknesses and strength that intern assist her in evaluating the amount of capital postulate to fancy or start a new business (Way, 2014, n. p.). Apart from that, accurate financial information allow for do to maintain accuracy of taxes and ensure that additional duties imposed on the Tiny toes ltd are paid. Accurate financial information provides cl ear statement to investors in evaluating the business financial performance. By this communication will be available to the implicated parties who want to contribute to the new projects of Sandras business. It will give them an easy way to determine accurate amount needed to finance the project completely. The investors and the contributors of the business rely on the accurate financial information for the safety and profitability of their investments (Way, 2014, n.p.). In the plan of starting a new business, she has to lay down the statements of finances for the budget needed like indentifying all income and expenses for the entire organization. She has to establish the time and period the budget will last and the capital required. By coming up with all this accurate financial information of Tiny toes ltd, she will able to access information on the past performance and the capital they have in hand. This will help to switch to another alternative incase a problem emerges in planni ng a new project. Consequently accurate financial information will help the banks and lenders to know if her business will be able to pay for the loan borrowed to avoid misfortunes in future (Way, 2014, n.p.). Apart from that, it will prevent the banks and lenders from stopping their support on her business through loans. Balance sheet is also part of financial information. Sandra needs to generate a sense of equilibrium sheet that will assess her business annually. The balance sheet will help determine the financial health of Tiny toes ltd. It will also help her have information on the productivity of the business and amount of capital that is retained. However, it will provide information on the operate of the business in impairment of how fast or slow the assets are and how to convert them into capital. Tiny toes will be able to determine financial state they are in a specific time. With all the details of the financial information Sandras business will have a clear under standing on how to come up with other new projects and how they will flourish. The benefits of Tiny toes having accurate change flow in beginning a new nursery in GuildfordBusiness plans and cash flow also plays a big subroutine on the progress of a business. This is what need to be initiated in Sandras a business to help the executives in the internal planning. The business plan will help in the application of loans and even borrow money from other lenders (Wasserman, 2010, p. 1) to support the projects. Lack of business plan in her business may lead to the downfall of Tiny toes ltd. By the business plan ahead, she will be able to identify the goals and objectives needed for the company to achieve its dream. However it will also help her determine the services needed to deliver in her project in Guildford. Provision of business plan for Tiny toes ltd will help to display the performance of her business and the goals ahead to start a new nursery and child care centre. A nother big role that the business plan plays is it reorganizes the business by making operational changes like reduction of expenses (Wasserman, 2010 n.p.). Nevertheless, it helps in the equity financing whereby banks and lenders are able to evaluate her business ability to take more loans if in need. As to cash flow, Sandra needs it to track and know the exchange of cash between Tiny toes and outside the business. The cash flow need to be done according to weekly and monthly basis to help monitor the flow of expenses and revenue. The cash flow is also all-important(prenominal) since it provides information on certain activities to notify Sandra so that she can know the impending danger in the business. In order to come up with accurate cash flow she should include aspects like cash receipts. The cash receipts include loans, private sources, fundraising and pa snags fees. However disbursement need to be included in the cash flow to provide information such as payroll expenses, supplies, maintenance, accounting and rent. All this details in the cash flow will help in calculating how much the company is making and if the profit incurred will help fund her new projects. Cash flow also helps in determine the changes in income and the balance sheet. The cash flow that Sandra needs, should be in different categories that is operating activities, investigating, supplementary and financial activities (The globe mail, 2013, n.p). The investment cash flow will help determine changes on the long-term investment on the new nursery and childcare centre. It will also enable determine the rent needed in Guilford. Financial cash flow brings changes on stock needed and the payments needed for the interests of the shareholder. The operating cash on the other hand will enable Sandra view the records on the budget needed for starting a new business. All this shows how cash flow is very important in a business. It acts as a warning by identifying shortfalls in cash ba lances. It also helps in preparing budgets and helps sport payments problems by parents in the tiny toes business. If it is initiated in Tiny toes, Sandra will be able to know how her business generates profits and spends capital. It will also help her determine the technology improvements required in the new project of nursery and childcare centre. The business plan will help in good management her business. It will also help Sandra decide in her business whether to rent a new space in Guilford or not and initiates discussion of the objectives with the employees, partners and investors of her business.Problems and financial information that Sandra has to prepare and additional information needed to make a well(p) decision The financial information of Sandra regarding Tiny toes and new projects of a new nursery and childcare centre is incomplete. In her information she yet states the insurance, rent, rates, recruitment training, loans, wages, amend prices and monthly charge d price. She has left out the budget which is a very important thing in starting a new project. She has to come up with organizational and program budgets. Organizational budgets should indicate the income and expenses in Tiny toes ltd for a certain period of time (Child care center, 2009, p. 14). It should also show the anticipated expenses and income of the company since she wants to develop a childcare center. Sandra should give details of her budget in the way that it shows the expenses needed to start a new project of childcare center. It should also analyze expenses of each child according to time and the first class services offered to children from wealthy families. This will help in tracking the costs since everything is evaluated separately. In her information, she should state the time and period the budget will cover to determine amount required for it. Another thing that is not included in her financial statement is the report of the planner who will be in charge o f monitoring the new business she wants to start. However, she has also skipped the aspect of licensing. Licensing may have umteen expenses that need high rate of funding (Mississippi, 2011, p. 11). It may include aspects such as safety codes and health care expenses because Medical examining is required for both the rung employed and children when dealing with a childcare center. Expenses for things like fire regulators also need to be included since they are the first priorities in her business to bring up safety. In her information she has only left out little details that seem to be not costly. When all of these little costs are entrap together they form a large expense that requires more help from the capital sector. By including all the details and coming up with an accurate financial information she will come up with her projects in a more efficient way. There will be no extra expense that will, destroy her planning. It will also help lenders and investors have clear information on the amount needed to fund the new projects.Problems experienced by Tiny toes in trying to generate internal finance in form of retained business Tiny toes have problems in generating internal finance due to the emergent competition which is increasing. The competitors that have nurseries provide the same services that Sandras company does. Their fees is less costly and due to that it poses a high risk to the progress of Tiny toes ltd. They are able to generate more capital than tiny toes and expand their services as compared to Sandra as a result of less cost. Due to this parents tend to take children to the competitors nursery than in Tiny toes ltd. Apart from that, Tiny toes will be forced to cut some costs that will drive external the staff and also students due lack of quality services. Lack of accurate financial information makes it difficult for her business to come up with a budget. However, a lot of capital is lost in things that are not necessary . Sandras business lacks plan and this is what destroys its capability to generate internal finance. Business plan is very important since investors are not able to invest in a business due to lack of clear information inform of cash-flow contained in it. This is the main things that that help in planning. Through business planning the Tiny toes will be able to understand how much profits the business will make and children needed in order to achieve more profits. This are the things that Sandra need to keep in mind in order to generate expand her business.Problems that Toes will encounter in the development of new projects Tiny toes will encounter problems in financial sector in the new project. This is due to high rent in Guildford and also adding more services only to allow the wealthy business may will bring loss to the business. In her projects she expands her business only to capture children who come from wealthy families. This shows they are not able to generate more i nternal profit. Tiny toes ltd does not expand its market share to capture children who come from at least less wealthy families. Relying on only one market share lowers the performance of the business especially in the financial aspect leading to low profit. Apart from that, tiny toes do not have accurate financial information. This shows that Sandra does not have information on the amaze of the business financially. In order for the Sandras business to prosper and generate more profit. She needs to expand her business by reflecting on both markets. She should counseling on both wealthy and poor people. She needs also to keep in mind of the accurate financial information, business plan and cash flows in running the nursery and child care centers. She should also be aware of the competitors by coming up with more efficient plans that will make her respectable her business and acquire a more large market share. Regarding the new projects she needs to take it slow by focusing o n one project at a time. Focusing on both projects will lead to the downfall of her business since it will require a large amount of capital. putting all this into consideration she will be able to plan other projects. Concentrating on one project at a time may have a company from bankruptcy.ReferencesChild care center (2009) financial planning and facilities development manual. Retrieved on 4th December 2014. http//www.buildingchildcare.net/uploads/pdfs/CCCManualFINAL07.pdfMississippi (2011). How to start quality child care business. Retrieved on 4th December 2014. http//www.mdhs.state.ms.us/media/16085/pub_mp29.pdfThe globe and mail.(2013). The importance of operating cash flow for small business. Retrieved on 4th December 2014. http//www.theglobeandmail.com/report-on-business/small-business/sb-money/cash-flow/the-importance-of-operating-cash-flow-for-small-businesses/article15134561/Wasserman ,E.(2010). How to write the financial section of a business plan. Retrieved on 4th Dec ember 2014.http//www.inc.com/guides/business-plan-financial-section.htmlWay,J. (2014). What is the importance of financial statements. Retrieved on 4th December 2014.http//smallbusiness.chron.com/importance-companys-financial-statements-21332.htmlSource document