G9 Reasons Business Need Finance

• Business Studies
• Secondary Education
• Age 13

Wednesday 

29th April 

2026

Unit 2

Reasons Businesses Need Finance

• To be able to understand the meaning of finance.
• To discuss the reasons businesses need finance. 

Businesses need finance to begin trading: rent a shop, furniture, equipment...

# Simple Explanations – Why Businesses Need Finance

### Start-up Costs

Money needed to start a new business.

**Examples:** Rent, equipment, furniture.

### Operations

Money needed to run the business every day.

**Examples:** Wages, electricity, stock.

### Expansion / Growth

Money needed to make the business bigger.

**Examples:** New branch, more machines, bigger shop.

### Cash Flow Problems

When a business does not have enough money now to pay bills.

**Examples:** Customers paid late, low sales this month.

Businesses need finance to run their business day-to-day: electricity, water, materials, workers salaries...

Businesses need finance because sometimes money comes in late, for example they do not get enough customers, but they must pay bills now. 

Businesses need finance because their goal is to grow the business by buying new machines, moving into a larger shop, or opening another branch.

St____ up _____

Op____

Da___ to ____y

Ca___ fl____

Ex_____

Sweet Cake Shop
The owner wants to open a new cake shop and buy ovens, tables, and ingredients.
Why does the business need finance?

1. Cash flow problems
2. Expansion/ growth
3. Operations
4. Start-up costs

Mobile Repair Store
The shop cannot pay electricity bills this month because customers paid late.
Why does the business need finance?

1. Cash flow problems
2. Expansion/ growth
3. Operations
4. Start-up costs

Complete the LMS practice on what you have just learnt.  

I can write at least three reasons businesses need finance.

😒🙁😐🙂😃

What is the correct meaning of a budget?

1. spending freely without any plan
2. creating a plan for how to use money wisely
3. saving money only for emergencies
4. making a list of your needs and wants