Horti-Business Management (2+0)

Planning financial needs

• Planning the financial needs of a business is very important. The owner or manager needs to be able to ask the following questions.
Why do I need the money?

• The general area of need for money is: (a) starting a new business, (b) inventory, (c) expansion, (d) remodeling, and (e) improving working capital.
How much money will I need?

• It is important to be able to specify how much money you will need. It is advisable when doing any financing to be able to stipulate the amount of money that you will be using and to specify if it is to purchase inventory, pay salaries or wages or even to be used to purchase a new equipment.
When I will be able to repay the money?

• Friends, bankers, and business associates are always interested in knowing when and how you anticipate repaying the loans. The majority of loan repayments come from sales of merchandise, inventory and payments received for services rendered.
Factors that increase loan repayments



Where will I obtain money?

• Compare the advantages and disadvantages of obtaining money from different sources in terms of interest payment and control over business.