Financial Decision Making for Entrepreneurs and Managers: Understanding and using business decision models in strategic planning Dr. Tom McKaskill Breakthrough Publications, August 2011 (1.0 MB) This book explains a number of business decision models which assist in the examination of strategic decisions facing the emerging company. While financial statements deal with historical performance information and budgets and cash flow projections assist to manage performance in the near to medium term, financial decision making tools and techniques assist to resolve ‘what if’ business decisions in the medium to long term.
Many strategic decisions are influenced by internal cost structures and revenue decisions. An understanding of cost structures, patterns and trends can greatly help with the examination of pricing decisions, investment alternatives and growth strategies. Pricing decisions impact profitability and growth.
Underpinning most future business strategies are considerations of the time value of money. Interest rates, rates of return, net present values, loan and lease payment and investment decisions are all impacted by this factor. Business valuation is not only impacted by the time value of money but also by the decisions the business owners make about how they manage risk.
Lastly, the most powerful of all financial decision making techniques is the business plan. An intimate knowledge of business plan preparation is an essential capability of the entrepreneur and emerging company management.
The book has 7 chapters: Chapter 1: Using financial decision models Chapter 2: Manipulating cost structures Chapter 3: Revenue management Chapter 4: Product and activity costing Chapter 5: Time value of money Chapter 6: Increasing business valuation Chapter 7: Preparing the business plan Conclusion: Managing the future