Remember, no one has to lend you any money or invest in your company. Do you need an intermediate-term loan to purchase larger assets such as real estate or equipment? When the company emerges from this initial phase, the management team should begin thinking how the company will evolve over the longer term.
For example, your assets will include cash, accounts receivable, inventory and equipment. To learn more about what investors will be looking for, see Reading The Balance Sheet Use realistic projections.
Your projections should be neither overly optimistic best-case scenarios, nor overly cautious worst-case scenarios, but realistic in-between projections that you can support. Three Key Financial Statements Your financial plan should include three key financial statements: Also describe what collateral is available to secure the loan, such as inventory, accounts receivable, real estate, vehicles or equipment.
Sales Forecast The Sales Forecast is a chart that breaks down how much your business expects to sell in various categories by month for the next year and by year for the following two to four years. When they are considering doing so, they will be comparing the risk and return of working with you to the risk and return they could get from lending to or investing in other companies.
Keeping customers satisfied provides the opportunity for repeat business. At what point have you determined that you will cut your losses and sell or close down, and how will you repay investors if this happens?
Give existing staff members educational opportunities to improve their skills and capabilities as managers. For a grocery store, the sales forecast might list projected sales of fruits, vegetables, dairy, meat, seafood, packaged goods and hot prepared meals.
Within each category are numerous subcategories. Structuring Your Financial Plan Begin your financial plan with information on where your firm stands financially at the end of the most recent quarter what its financial situation has looked like historically.
When you put together your financial statements, make sure there are absolutely no typos or mistakes in your calculations.
In order for your projections to be accurate, you must know your business. You must also determine which type of financing would be most suitable for your business. These are called "pro forma" statements, and they are based on your assumptions about how your business will perform.
Whatever their form, financial statements must be complete, accurate and thorough. Satisfied customers are likely to tell their friends or associates about the positive experience they had, generating additional customers.
Personnel Plan If your business will have employees and not just managers, you will need a Personnel Plan showing what types of employees you will have for example, cashiers, butchers, drivers, stockers and cooksalong with what they will cost in terms of salary and wages, health insuranceretirement-plan contributionsworkers compensation insuranceunemployment insuranceand Social Security and Medicare taxes.Reaching key non-financial goals improves the company’s chances of achieving important financial targets such as revenue and profitability.
Customer Satisfaction Achieving a high degree of customer satisfaction--and improving on that rate each year--should be a major goal of any business. unclear (goals should be realistic, specific and have a deadline (aka time frame).
The first step in developing a personal financial plan is: determining your current financial situation. A business plan can be used for several things, from monitoring your company's progress toward goals to enticing key employees to join your firm.
Deciding how you intend to use yours is an. This may not be a financial goal in and of itself, but it is an obstacle that will stand in the way of all good financial goals, no matter what they are. An addiction to stuff can be like a financial parasite. Then put your plan into action and watch those financial goals turn into financial reality.
Tips for Setting Financial Goals Be realistic about how much time and money it will take to accomplish each goal--an estimate that is too low will only frustrate you. Your financial plan should include three key financial statements: the income statement, the balance sheet and the cash flow statement.
Let's look at what each statement is and why you need it. Let's look at what each statement is and why you need it.Download