Abstract:
The main object of this study is to contribute to knowledge of, and insight into, financial management as part of the strategic management of a small business. The importance of the small business has long been recognized worldwide, and its survival is important to the economy of a country. In the current depressed economic situation, small business find it more difficult to survive. Inadequate management skills, especially in financial management, lead to many failures. The current financial situation of a small business, The Car Centre, is analyzed according to the literature reviewed. It is proved to be unsound, and recommendations are made to rectify matters. A strategic plan is proposed for The Car Centre. First of all the mission is formulated, from which specific objectives are set. The main goal is the implementation of sound financial principles in conjunction with the strategic plan. Cash flow budgets should be drawn up and controlled on a daily basis to reach specified financial performances at predicted times. Financial performance could be enhanced by an increase in sales, lowering of operating costs and selling of assets.
