DAY 12 – ENTREPRENEURSHIP DEVELOPMENT PROGRAM 2022 #EDP2022

“Beware of little expenses, a small leak can sink a great ship”
– Benjamin Fraklin

Mr Richmond Okafor gave an instructive session on “Financial Planning”.

Here are keynotes from his session:
1. Margins should be your best friend as an entrepreneur.
2. There are four essential parts of a financial statement.
-Breakeven: A point where there is neither profit nor loss.
-Balance sheet: A balance sheet states a business’s assets, liabilities, and shareholder’s equity at a specific point in time.
-Profit & Loss Statement: The term profit and loss (P&L) statement refers to a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period
-Cashflow: The total amount of money being transferred into and out of a business, especially as affecting liquidity.
3. A variable cost is a corporate expense that changes in proportion to how much a company produces or sells.
4. Business costs, such as rent, are constant whatever the number of goods produced.
5. Gross profit: Gross profit is the profit a company makes after deducting the costs associated with making and selling its products.

Mr Richmond Okafor stated that having a good financial knowlegde of your business is very important because investors are always interested in knowing if you know that aspect of business.

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