Financial Planning For Business Samyak Veera
What is Financial Planning • Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. • The financial plan is a self-supporting document intended to support and direct the actions of the business. • It explains what your business can afford, how it can afford to do it and what the expected profits will be.
Samyak Veera
Financial Planning Steps • Ideally, you should have a business plan template or financial worksheet that should include shortterm and longer-term(balance sheet,income statement and cash flow statement). • Next, pull together all of the research you have gathered on the costs you will incur before you launch the company to determine the capital investment needed.
Samyak Veera
• Think about what will drive revenues in your first years of operation. Create assumptions based on these revenue drivers, scaling up revenues at a conservative, but appropriate rate. • Finally, double check that the cash flow statement shows an ending cash balance that remains positive at all times. Samyak Veera
Benefits of Financial Planning • Protecting your income and assets • Creating annual budgets lets you see your big expenses, plan for them, reduce them if necessary. • Financial planning includes estimating your taxes and adjusting your estimates as your sales rise and fall. • It will highlight periods where your business may need extra financial help. Samyak Veera
Business growth can be achieved byfinancial planning.If our financial structure and planning will be strong then it will automatically enhance the business growth.
Samyak Veera
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Samyak Veera