Workbook
Level 10 · Finance
Work through these exercises with your own product, market and numbers. Review your answers with a mentor, a farmer group or a business adviser. Print this page to fill it in by hand.
Exercises in this level
- 10.1 · List the capital I need
- 10.2 · Cost one unit of my product
- 10.3 · My four-week cash-flow plan
- 10.4 · Questions before I borrow
Part 1 · Startup capital and working capital
Exercise 10.1 · List the capital I need
- List the one-off items you need to start. Write a cost for each from a real quote or visit.
- List the running costs for one full cycle, from buying materials to receiving payment.
- Write how many days pass between spending money and being paid.
- Mark the two items you are least sure about and how you will check them.
Part 2 · Costing one unit
Exercise 10.2 · Cost one unit of my product
- List every cost for one batch, using your real figures.
- Divide by the units you expect to sell in good condition.
- Compare your cost per unit with the price buyers pay now, and write what you learn.
Part 3 · Cash flow: when money comes in and goes out
Exercise 10.3 · My four-week cash-flow plan
- Write the cash you have now.
- For four weeks, write the money you expect in and out, with your own figures.
- Mark any week where the cash goes below zero.
- Write two things you could do to avoid or reduce the gap.
Part 4 · Borrowing, saving and group finance
Exercise 10.4 · Questions before I borrow
- Write what you would use the money for, and how it would help you earn more.
- Write the questions you would ask the lender about total cost, fees, due dates and late payment.
- Write the largest repayment you could make in your slowest month with your own figures, and what you would do if you could not pay.
- Write one alternative to borrowing, such as saving, a smaller start or a shared tool.