Small Business Financial Operations

This unit develops core financial management skills for small businesses, including analyzing financial health, costing and margin analysis, cash flow and budgeting, and planning for capital needs, taxes, valuation, and exit. Students will apply quantitative tools and reporting practices to diagnose problems, secure financing, and improve profitability in product, service, and manufacturing contexts.

Learning Objectives

• Analyze financial statements, liquidity ratios, and internal control reports to identify early warning signs of financial distress and recommend corrective actions.
• Compute cost of goods sold, product cost per unit, contribution margin, and breakeven point for product, service, and manufacturing scenarios.
• Evaluate and compare sources of capital (e.g., loans, equity, certificates of deposit, owner resources) and prepare a capital acquisition plan with recommended financing strategies.
• Develop cash flow projections, operating budgets, and an annual tax-filing checklist, and apply pricing and expense-management techniques to improve business margins and profitability.