If you are going to start a business you must inexorably have a financial plan . Do not think that it is so complicated to develop a financial plan for entrepreneurs , because today there are numerous programs and applications that are responsible for preparing it for you.
As for everything in life, and it is not for less the business environment, it requires organization, planning and forecasting , which are the basic ingredients of any economic and financial plan. And it is that these are the objectives of the financial plan: to translate the strategy of the business plan into numbers.
For what purpose is a financial plan carried out?
The purpose of a financial plan is to determine what resources will be necessary to complete a business project, before creating a company . So much so, that any financial plan must respond to whether the business is viable; at what is the required financing and when will it be necessary to obtain it; the type of financing that best suits the purposes of the project and you will also have to analyze who is more convenient to finance the project.
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What are the objectives of the financial plan?
The main mission of any economic-financial plan is to warn if the project in hand is viable and profitable and for this it must include a series of specific objectives.
The main objectives of any financial plan are:
- Establish what are the investments required by the company( investment plan ) for the start-up phase, as in the rest of the consolidation and expansion phases.
- Determine which sources of financingare the most appropriate for making the required investments ( financing plan ). In the event that third party financing is chosen, the anticipation of its return must be specified.
- Reflect theestimated sales and specify the sales plan . At the same time, the estimated expenses must be deducted. All this for the first three years of activity and if possible detailing the results month by month.
- Calculate the equilibrium point of the company, that is, the point from which the company will begin to be profitable, to generate profits.
- With all these data captured on paper, you can already see the viabilityof a business project ( viability plan ).
Information needed to start preparing a financial plan
If you have already convinced yourself of the usefulness of the economic-financial plan to get an approximate knowledge of the future of your business, congratulations, you are closer to the success of your business project .
To make you even closer, we provide you with the information you need to collect to start writing this document. First, you should know what estimate of prices and sales units are estimated for each product, market or sector. Next, you should prepare a cost structure necessary to produce a product or perform a service. You will also have to consider the estimated expenses for personnel, in addition to general and administrative expenses. Finally, it is advisable to prepare a guide with the cost and plan of the investments planned.
If you are going to create a company it is essential that you make an economic and financial plan that allows you to know what the business numbers will be at the beginning. Here you can find the different steps and instructions to prepare a financial plan for your project.