Are you a business owner who is looking to write a financial plan for your company? If so, you’re in luck! In this blog, I will be teaching you how to write a business financial plan that is both accurate and achievable. So, whether you’re just starting out or are looking to improve your current plan, keep reading for tips and advice.
Your financial plan is an important document, as it is for any business, no matter its size. A good financial plan can help you make sound decisions about your company’s future and keep your business on track financially.
But writing a financial plan can be daunting – especially if you’re not familiar with the terminology. So where do you start? This blog (and vlog) will walk you through the basics of writing a business financial plan.
Why you should write a financial plan
If you’re thinking about whether you can afford something for your company at the moment – things like:
- Investing in a course or business coaching you’ve just come across,
- Hiring more staff,
- Outsourcing a certain portion of your work,
- Starting a marketing campaign, etc.
Then, you need to be familiar with your numbers at this point in time. And also, be able to see if those numbers check the boxes for the current/next quarter. If your business is doing well i.e. performing according to plan, then you might be able to invest more money into some of the things mentioned above.
Another reason for having a financial plan is that it will make you a more relaxed manager of your business. It will feel like you have a firm grip on your steering wheel and you know exactly where you’re going. So, a sense of security and confidence is inevitable – and that’s an enormous plus!
How to start your financial plan
The first thing you need to do is to devote time to figuring out the following:
- Where your money comes from: simply describe them,
- What your business costs are: direct costs and overhead costs, and
- What your wishlist is.
There’s no need to quantify them at this point. You’ll simply be making a list of the revenue sources and costs. The third list is that of your wishes for your business, and that can be anything from professional development or new equipment to stepping away from the day-to-day in your business. You decide what that is for you.
Once you’ve created your list, it’s then time to assign numbers to each of the bullets. The numbers will give you a good idea about where you are in terms of profitability, and whether you need to make any changes to what you’re charging right now, your workflow and efficiency, and the like.
Coming back to why you need to create a financial plan, you’ll now see how much this will help you as a business owner. Because it will bring clarity and you’ll be able to align much better with your company’s vision.
Conclusion
So, if you’re feeling a little lost when it comes to your business and money, don’t worry. You’re not alone. The good news is that there are ways to fix this and get on track. And the best way to do that? Write your financial story ( = create a financial plan).
Once you have a financial plan and use it, you can start making meaningful decisions and changing your beliefs. You’ll get yourself back to where you want to be, budgeting, saving, and reaching your financial goals.
If you want your numbers to be more accessible and easier, then grab a copy of my book I Hate Numbers. According to one reviewer
“This is the best, most straightforward, pragmatic and enjoyable book I’ve ever read on finance for business. It’s a must-read for all entrepreneurs. Your clarity, humour, wisdom and great advice shine through as you make numbers accessible and easy for everyone.”
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