Financial planning which mature at startup process your business

Financial planning which mature at startup process your business

Concerns for businesses when it will start up a business is a financial problem. It needs careful planning when to start a business. Thorough planning when the startup process must be full More »

The Important Components of the Project Management Information System

The Important Components of the Project Management Information System

Based on the above requirements the consultants developed five modules for assisting the project management team to improve the quality of the information used in management planning, control and reporting. The design More »

This is the reason why we need project manager

This is the reason why we need project manager

A project is a short-term undertaking to create a product or provide a service that is not part of day-to-day business operations. Small businesses don’t need a complex methodology when it comes More »


The Waterfall Methodology in Management business

The Waterfall approach to systems analysis and design wass the first established modern approach to building a system. This method was originally defined by Winston W. Royce in 1970, (“The Waterfall Development Methodology”, 2006). It quickly gained support from managers because everything flows logically from the beginning of a project through the end, (Jonasson, 2008). Sources differ when it comes to the specific steps in the Waterfall process (Jonasson, 2008), and I will detail some of these differences in the next paragraph. However, the basic underlying logic and steps present themselves in each interpretation.

Waterfall_modelFigure 1: Waterfall method

(“The Waterfall Development Methodology”, 2006)

The original Waterfall method, as developed by Royce, is featured in Figure 1. The steps include Requirements Determination, Design, Implementation, Verification, and Maintenance. Other models change the Requirements phase into the Idea phase (Jonasson, 2008), or break the Requirements phase out into Planning and Analysis (Hoffer, George, Valacich, 2008). Furthermore, some models further break the Design phase out into Logical and Physical Design subphases (Hoffer, et al, 2008). As previously mentioned, however, the basic underlying principles remain the same.

The Waterfall method makes the assumption that all requirements can be gathered up front during the Requirements phase (Kee, 2006). Communication with the user is front-loaded into this phase, as the Project Manager does his or her best to get a detailed understanding of the user’s requirements. Once this stage is complete, the process runs “downhill” (Hoffer, et al, 2008).

The Design phase is best described by breaking it up into Logical Design and Physical Design subphases. During the Logical Design phase, the system’s analysts makes use of the information collected in the Requirements phase to design the system independently of any hardware or software system (Hoffer, et al, 2008). Once the higher-level Logical Design is complete, the systems analyst then begins transforming it into a Physical Design dependent on the specifications of specific hardware and software technologies (“Software Development Lifecycle”, n.d.)

The Implementation phase is when all of the actual code is written (“SDLC Phases”, n.d.). This phase belongs to the programmers in the Waterfall method, as they take the project requirements and specifications, and code the applications.

The Verification phase was originally called for by Royce to ensure that the project is meeting customer expectations. However, under real-world analysis and design, this stage is often ignored. The project is rolled out to the customer, and the Maintenance phase begins.

During the Maintenance phase, the customer is using the developed application. As problems are found due to improper requirements determination or other mistakes in the design process, or due to changes in the users’ requirements, changes are made to the system during this phase. (“SDLC Phases”, n.d.).

The Waterfall method does have certain advantages, including:

  • Design errors are captured before any software is written saving time during the implementation phase.
  • Excellent technical documentation is part of the deliverables and it is easier for new programmers to get up to speed during the maintenance phase.
  • The approach is very structured and it is easier to measure progress by reference to clearly defined milestones.
  • The total cost of the project can be accurately estimated after the requirements have been defined (via the functional and user interface specifications).
  • Testing is easier as it can be done by reference to the scenarios defined in the functional specification (“The Waterfall Development Methodology”, 2006).

Unfortunately, the Waterfall method carries with it quite a few disadvantages, such as:

  • Clients will often find it difficult to state their requirements at the abstract level of a functional specification and will only fully appreciate what is needed when the application is delivered.  It then becomes very difficult (and expensive) to re-engineer the application.
  • The model does not cater for the possibility of requirements changing during the development cycle.
  • A project can often take substantially longer to deliver than when developed with an iterative methodology such as the agile development method. (“The Waterfall Development Methodology”, 2006).

Due to these and similar problems, systems analysts began looking for alternative methods of designing systems. In the following sections, I will go over select methods that have been developed. I will concentrate on methodologies that have been classified as Agile. In this paper, I will concentrate on Extreme Programming, Scrum, and Test-Driven Development.

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Balancing the Right Debt and Equity in Small Business Finance

Develop a business plan and loan package that has a well developed strategic plan, which in turn relates to realistic and believable financials. Before you can finance a business, a project, an expansion or an acquisition, you must develop precisely what your finance needs are. Finance your business from a position of strength. As a business owner you show your confidence in the business by investing up to ten percent of your finance needs from your own coffers. The remaining twenty to thirty percent of your cash needs can come from private investors or venture capital. Remember, sweat equity is expected, but it is not a replacement for cash.

Financing a small business can be most time consuming activity for a business owner. It can be the most important part of growing a business, but one must be careful not to allow it to consume the business. Finance is the relationship between cash, risk and value. Manage each well and you will have healthy finance mix for your business.

Depending on the valuation of your business and the risk involved, the private equity component will want on average a thirty to forty percent equity stake in your company for three to five years. Giving up this equity position in your company, yet maintaining clear majority ownership, will give you leverage in the remaining sixty percent of your finance needs. The remaining finance can come in the form of long term debt, short term working capital, equipment finance and inventory finance. By having a strong cash position in your company, a variety of lenders will be available to you. It is advisable to hire an experienced commercial loan broker to do the finance “shopping” for you and present you with a variety of options. It is important at this juncture that you obtain finance that fits your business needs and structures, instead of trying to force your structure into a financial instrument not ideally suited for your operations.

Having a strong cash position in your company, the additional debt financing will not put an undue strain on your cash flow. Sixty percent debt is a healthy. Debt finance can come in the form of unsecured finance, such as short-term debt, line of credit financing and long term debt. Unsecured debt is typically called cash flow finance and requires credit worthiness. Debt finance can also come in the form of secured or asset based finance, which can include accounts receivable, inventory, equipment, real estate, personal assets, letter of credit, and government guaranteed finance. A customized mix of unsecured and secured debt, designed specifically around your companys financial needs, is the advantage of having a strong cash position. The cash flow statement is an important financial in tracking the effects of certain types of finance. It is critical to have a firm handle on your monthly cash flow, along with the control and planning structure of a financial budget, to successfully plan and monitor your companys finance.

Interrogate and financial plan of retirement

On the other hand financial planning retirement with a defined benefit plan engages retirement accounts that is set up as well as controlled by an employer. These ensure a set payout during retirement. The financial calculation is chiefly based on the tenure as well as the salary of an employee. These funds may be further categorized into cash balance plans and pensions. They may be either unfunded or funded. Social security system is a suitable example of an unfunded plan wherein the contributions take the form of FICA or the Federal insurance contributions act. Self employed people may also go in for financial retirement planning. The Simple IRAs, Simplified Employee Pension (SEP) IRA as well as 401(k) are channeled towards the self-employed section of the financial system. Some of the benefits that the self employed people can opt for include tax deferred savings and up front tax breaks.

With financial planning you can plan your retirement. But then, what do you think that retirement financial planning is all about? Well, in simple words, retirement financial planning engages making arrangements for the needed finances that you would need post retirement. Financial planning for retirement involves a defined contribution plan or a defined benefit plan. Some of the notable examples of defined contribution plan are as follows-

1. Individual Retirement Account (IRA)

2. 401(k)

3. Roth 401(k)

4. Profit sharing plans

In general, the aforementioned plan dont allow for any withdrawals from the savings for a stipulated span of time span.

Most Retirement Financial Planning are inclusive of life insurance and health insurance products. These plans allow net-worth individuals an affordable and quick access to the investment classes. These are inclusive of products which diversify the contribution of an investor into multiple sub classes such as bonds, cash, commodities, stocks to name a few. Estate planning involves committees and trusts which safeguard your assets as well as their distribution incase of the applicants demise. To sum up, Retirement Planning is a crucial factor that you need to take into consideration if you want to lead a financially secured life post retirement.

The impact of rising oil prices on the economy of a country

Oil prices continue to soar lately have an impact on the lives of the most important climatic investation.Yang whether the government will also adjust the price of oil / fuel in the country or not. If yes, of course, of course, can be very different economic conditions. Normally the fuel price hike will lead to higher production costs, increase in distribution costs and also increase inflation.

The prices of goods are becoming more expensive, purchasing power decline, because they fixed income. Tip the economy will stagnate and the level of well-being disturbed.

On the other hand, more and more bad loans to increase, the most serious is the limited employment opportunities for businesses to adjust production in accordance with the rise in prices and a decrease in demand for goods.

The things above happen if fuel prices increased, What if not? Government subsidies on fuel will increase as well, why? Although our country an oil producer, in fact, to produce the fuel we still need oil imports of raw materials as well.

In the absence of fuel price hike, subsidies should be provided by the government are also getting bigger. Where the source of these subsidies cover? One is the increase in export earnings. Why be like that? Because of the increase in world oil prices also boosted the export prices of certain commodities, such as palm oil as crude palm oil (CPO) is the petroleum subsidy. Income from rising CPO prices will not be proportional to the amount of costs to be incurred for oil subsidies.

In connection with the above conditions is approximately policy is to be taken by the government?

If the increased fuel prices, the government’s image in politics will be disrupted, people certainly do not agree that the prices to be expensive, if the government bothered impacts is very broad, so, if it refers to the possibility that fuel prices will not be increased.

But the problem has not been done here, even though fuel prices are not raised, still the impact of rising world oil prices affect the economy of a country, including the investment climate.

Rising world oil prices make the cost of production increases. That means the selling price of imported goods will also be costly imports that will have an impact on inflation due to rising prices of imported goods.

The impact of this first, deposit and loan interest rate will not go down in the near future, the interest rates tend to rise, or at least still be inversely proportional to the price of the bond. This means that if interest rates rise, bond prices will likely fall. Thirdly, the interest rate unchanged also give different levels of interest in the foreign country with a relatively steady or even widened. (Endang Wahyuningsih)


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