financing
TRANSCRIPT
Financing and Financing and ContractsContracts
becoming an independent organization
1. Capital needs
2. Capital resources & borrowed capital
3. Investment & Balanced Scorecard
4. Financial Decisions & contracts
5. Scenario as a method
Clearing/knowing the intern budget
Transparency
Realistic analysis of costs
Realistic targets
B. Rahn
1. Capital needs
2. Capital resources & borrowed capital
3. Investment & Balanced Scorecard
4. Financial Decisions & contracts
5. Scenario as a method
B. Rahn
budget coststargets
Capital needs for investments
As a result you check:
Capital resources of your organization
(remember the fundraisers for gaining more!!!)
Is your own capital enough?
1. Capital needs
2. Capital resources & borrowed
capital
3. Investment & Balanced Scorecard
4. Financial Decisions & contracts
5. Scenario as a method
B. Rahn
1. Capital needs
2. Capital resources & borrowed
capital
3. Investment & Balanced Scorecard
4. Financial Decisions & contracts
5. Scenario as a method
B. Rahn
Of course you need money from the bank and it
could be more than your own money (maybe 60/40)
– what is the best way?
More from the bank or more by the organization???
1. Capital needs
2. Capital resources & borrowed
capital
3. Investment & Balanced Scorecard
4. Financial Decisions & contracts
5. Scenario as a method
B. Rahn
The LEVERAGEEFFECT
The income-return of your OWN Capital resources is
raising although you have more money from the bank
(debits). The reason is that your interest rates at the bank
are very low at this time, you pay your debits and your
business is running well!
What is the risk here?
1. Capital needs
2. Capital resources & borrowed
capital
3. Investment & Balanced Scorecard
4. Financial Decisions & contracts
5. Scenario as a method
B. Rahn
CASHFLOW
Is the main description of „liquid money“ – at the end of
the year for investements and for paying debits. So the
analysis of the CashFlow is important for your next
decisions and investment-plans for the next period.
1. Capital needs
2. Capital resources & borrowed capital
3. Investment & Balanced Scorecard
4. Financial Decisions & contracts
5. Scenario as a method
B. Rahn
Definition
Investment: Payments which start with paying (pay-out)
Financing: Payments which starts with investing money
(budgeting)
(where does the money come from for the investment?)
(think about buying real estates)
1. Capital needs
2. Capital resources & borrowed capital
3. Investment & Balanced Scorecard
4. Financial Decisions & contracts
5. Scenario as a method
B. Rahn
Balanced Scorecard (Kaplan, Norton 1996)
Is developed for a longterm scoring of strategic planning.
For a whole successful Organization-process, not only the
economic state is important. The Balanced Scorecard is
for the whole worth and efficency of an organization with
special points:
1. Capital needs
2. Capital resources & borrowed capital
3. Investment & Balanced Scorecard
4. Financial Decisions & contracts
5. Scenario as a method
B. Rahn
Balanced Scorecard (Kaplan, Norton 1996)FinancesFinances
Learning & Evolution
CustomersCustomersInternal
processesInternal
processesVision
1. Capital needs
2. Capital resources & borrowed capital
3. Investment & Balanced Scorecard
4. Financial Decisions & contracts
5. Scenario as a method
B. Rahn
What are we doing with this Know-How?
Based on the capital needs, the CashFlow-analysis
and the strategy from the Balanced Scorecard the
organization can decide the next steps and talk with the
bank. The main target is to get a low interest-rate for a
longterm-contract!
1. Capital needs
2. Capital resources & borrowed capital
3. Planning an investment
4. Financial Decisions & contracts
5. Scenario as a method
B. Rahn
Contract negotiations
The contract must include all conditions of
the organization and of the bank!
The main target is to get an interest rate which is low and
fixed for a long term.
WHY ?
1. Capital needs
2. Capital resources & borrowed capital
3. Planning an investment
4. Financial Decisions & contracts
5. A Scenario as a method
B. Rahn
Finances clear, contracts made -> First Scenario!
The main target of the scenario-method is to check the
evolution in the future based on the planning and
contracts which are made. Mainly the interest-rate-
trend, stocks, contract basis and maybe changings in the
local law.
1. Capital needs
2. Capital resources & borrowed capital
3. Planning an investment
4. Financial Decisions & contracts
5. A Scenario as a method
B. Rahn
Scenario-method: A prognosis
Analysing the tasks in the future
What is the ordering / trend?
Influences (neg., pos.)?
Results!?!
ConclusionConclusion Analysing the capital needs
Leverageeffect
CashFlow
Balanced Scorecard
Negotiations (Contracts)
Scenario-method B. Rahn
Thanks for your Thanks for your attention attention