7 keys to make the financial plan of a company

7 keys to make the financial plan of a company

 For a lot of entrepreneurs, economic issues become constant headaches. However, it’s necessary to control some basic ideas to make a complete, reliable business plan to determine the viability of the project.

Let’s start with the financial plan with the following steps:

3, 2, 1… There they go!


7 steps to make the financial plan of a company:

1. Starting investment plan :

Here we should specify which will be the necessary investments to run out your business. Some of the concepts we should consider are the computer apps, employees, equipment, offices and deposits, in addition to the treasury needs and payment to suppliers in a period of time that will change according to the activity.

2. Sources of financing:

Ways of fund the initial investment: own and foreign resources (analyzing the ability to get resources with third parties.

3. Balance:

This document describes the financial status of the company at a given time. Thanks to him we know the value of the business.

4. Budget / cash flow:

It aims to determine the amount available in cash. The cash flow is one of the main magnitudes to consider knowing the viability of the company. Operating Cash Flow, Cash Flow by investment activities and Cash Flow by financing activities.

5. Profit and loss account:

It allows to know  the economic result derived from the difference between revenues and costs.

6. Treasury forecast:

This section is where the exits and inflows of money that the company will make during a specific period of time are estimated in a concrete manner. Thus, it will be possible to know what the liquidity situation of the company is.

7. Break-even analysis:

It is interesting to know the equilibrium point of the company, since with the result we can make decisions about the prices of the product and make an analysis of business profitability.

If you‘re not a risk taker, you should get the hell out of business.

Ray Kroc

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