The projection of my business for the next coming years is very good and positive. I can say that my restaurant is profitable and has a high chance for expansion. The cash flow forecast of the first year has high figures

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Daryl Llanes

Business Examination

Unit 8

Task D

Business Projection

Cash flow Projection (2008 - 2009)

For the next two years, the restaurant’s future will depend on the cash flow forecast. By this, we could monitor the money coming in and out. We could monitor the expenditures that the business may have facing, whether spending more on stocks and increasing the wages of the employees. Cash flow forecast is really helpful to keep the business on track on what is happening on the financial side of the business.

For the start of the year 2008 and 2009, the opening balance of my business is £72724.8 and £159703.6. These amounts of money are the closing balance from December of both years. To increase the sales, I have made an advertisement in January 2008 to promote the business. Promoting the business for the first month of the year is good because this could be a good start to increase the flow of customers and of course to increase the sales. For this month, the total sales is £22000. This amount of money is not that bad, but if we compare this to last year when the restaurant first opened, both sales are almost the same. However, for the year 2009, we increased the sales to £27000 in January. Despite of this sales for the first month, we need more people coming in to the business and do more promotion.

The projection of my business for the year 2008 and 2009 is that we increased our sales and earned the loyalty of the customers. This is good because in just three years, we managed to earn the profit and return the amount of money that I invested for this business.

I have projected that the same every year, summer season will give the restaurant a hard time and declining sales. I have projected the restaurant sales were declining between the months of July to September 2008 and 2009. However, I have predicted that between October until Christmas season, we will increase sales because of more people eating in restaurants during these months especially the month of December. For these months, the highest sales of the month are always expected.

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Inflation

Inflation in Britain has been relatively higher than the rest of the world. The rise in relative inflation leads to a fall in the world share of UK exports and a rise in import penetration. Ultimately, this will lead to a fall in the rate of economic growth and the level of employment.

One effect of inflation to my business is the wage-price spiral. Price rises can lead to higher wage demands as my employees are trying to maintain their real standard of living.

Inflation can also affect my future plans for the ...

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