A Business Plan – A Financial Must
Most entrepreneurs recognize the importance of having a business plan. According to Forbes Magazine, a business plan is a document that explains your business idea in writing – how it will succeed and who will make it happen. A business plan pushes you to almost run your business on paper before you make any final decisions to open your business or promote your product. A business plan can help you identify possible challenges and flaws in your approach.
The good news about a business plan is that it can be your guiding force as you move forward in your business. It’s not just a document you do and then forget. Your business plan should be followed, shared and modified when necessary. An important part of a business is the financial plan.
The financial part of a business plan includes various financial statements that show where your company currently stands and where it expects to be in the near future. This information helps you determine how much financing your business needs and helps outsiders determine whether lending you money or investing in your business is a wise use of their funds. The numbers may not always be easy to outline and crunch, you will have many assumptions, but this is okay. Think of the plan as a working document with moving parts that can be changed and modified. The most important thing to do is to ensure that the financials of your business receive as much attention (if not more) as your fantastic business or product idea.