A financial plan consists of

* Investment Budget
* Financing Plan
* Operating Budget (statement of revenues, expenses and profit)
* Liquidity budget (actual expenditure and income)

Investment Budget
Investment in a Budget You define what you need at least to start your business.
The capital budget is divided into fixed assets and current assets.

* Fixed assets

Fixed assets are assets that more than one years in your present company.
Examples: computer, printer, inventory, commercial, deposit, goodwill.

* Current assets

Assets of less than one years in your present company, the current assets.
Examples: stocks, receivables, tax and finance start-up and opening costs, cash or money in the bank.
Starting and opening costs are expenses you incur before you make sales. Examples: notary fees, registration Chamber of Commerce, living first period, market research, consulting costs, business cards and stationery.

The run-up charges and allows you to specify an investment forecast. This forecast is also an estimate of the contingencies. This book costs you money for which you do not know whether you'll make them and how big they are. Therefore difficult to estimate. The easiest way is to around ten percent of the total investment as a starting point.
For a good overview create a list of all items with the corresponding amounts. Substructure amounts possibly bids.
On the basis of the investment budget can help determine how much money you will be short. How you fill that?

That answers your question in the financing plan.


Financing Plan

This makes you an overview of the following components:

* Equity (such as savings, personal loan, mortgage increases, gift acquaintances, input stuff)
* Long debt (including bank loans, social lending service, leasing)
* Short-term loan capital (current accounts, advances, supplier credit)

How to get money? See them all on funding.

Operating Budget

A financier will want to know what the future intend to convert and expenses before you go and what you then to keep profits. That puts you in a row in the operating budget, or forecast the outcome. This should be clear how viable the company. You therefore do well to a number of versions of that budget to make an optimistic and a pessimistic variant realistic one.
Especially with a new business in a new market will be hard to make a good prediction of turnover. In your market research as well is you have the numbers already put in a row. See also identify opportunities and threats with SWOT analysis.

Liquidity Budget

Last part of your financial plan is the cash budget.

It is a period (eg per month) how much money comes in and what goes out. These amounts are cash on its balance sheet, and bank transfer. Especially for a starter it is important to have an insight. The Tax money will soon see, and if you have staff you need to pay industrial insurance premiums. Many novice entrepreneurs in this problem: they are cash short. A budget helps to understand possible shortages.

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