How to Write a Small Business Financial Plan

Stairs leading up to a dollar sign. Represents creating a financial plan to achieve profitability.

Noah Parsons

3 min. read

Updated January 3, 2024

Creating a financial plan is often the most intimidating part of writing a business plan. It’s also one of the most vital. Businesses with well-structured and accurate financial statements in place are more prepared to pitch to investors, receive funding, and achieve long-term success.

Thankfully, you don’t need an accounting degree to successfully put your budget and forecasts together. Here is everything you need to include in your financial plan along with optional performance metrics, specifics for funding, and free templates.

  • Key components of a financial plan

A sound financial plan is made up of six key components that help you easily track and forecast your business financials. They include your:

Sales forecast

What do you expect to sell in a given period? Segment and organize your sales projections with a personalized sales forecast based on your business type.

Subscription sales forecast

While not too different from traditional sales forecasts—there are a few specific terms and calculations you’ll need to know when forecasting sales for a subscription-based business.

Expense budget

Create, review, and revise your expense budget to keep your business on track and more easily predict future expenses.

How to forecast personnel costs

How much do your current, and future, employees’ pay, taxes, and benefits cost your business? Find out by forecasting your personnel costs.

Profit and loss forecast

Track how you make money and how much you spend by listing all of your revenue streams and expenses in your profit and loss statement.

Cash flow forecast

Manage and create projections for the inflow and outflow of cash by building a cash flow statement and forecast.

Balance sheet

Need a snapshot of your business’s financial position? Keep an eye on your assets, liabilities, and equity within the balance sheet.

What to include if you plan to pursue funding

Do you plan to pursue any form of funding or financing? If the answer is yes, then there are a few additional pieces of information that you’ll need to include as part of your financial plan.

Highlight any risks and assumptions

Every entrepreneur takes risks with the biggest being assumptions and guesses about the future. Just be sure to track and address these unknowns in your plan early on.

Plan your exit strategy

Investors will want to know your long-term plans as a business owner. While you don’t need to have all the details, it’s worth taking the time to think through how you eventually plan to leave your business.

  • Financial ratios and metrics

With all of your financial statements and forecasts in place, you have all the numbers needed to calculate insightful financial ratios. While these metrics are entirely optional to include in your plan, having them easily accessible can be valuable for tracking your performance and overall financial situation.

Common business ratios

Unsure of which business ratios you should be using? Check out this list of key financial ratios that bankers, financial analysts, and investors will want to see.

Break-even analysis

Do you want to know when you’ll become profitable? Find out how much you need to sell to offset your production costs by conducting a break-even analysis.

How to calculate ROI

How much could a business decision be worth? Evaluate the efficiency or profitability by calculating the potential return on investment (ROI).

  • Financial plan templates and tools

Download and use these free financial templates and calculators to easily create your own financial plan.

how to prepare financial plan for business

Sales forecast template

Download a free detailed sales forecast spreadsheet, with built-in formulas, to easily estimate your first full year of monthly sales.

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Content Author: Noah Parsons

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

how to prepare financial plan for business

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Free Financial Templates for a Business Plan

By Andy Marker | July 29, 2020

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In this article, we’ve rounded up expert-tested financial templates for your business plan, all of which are free to download in Excel, Google Sheets, and PDF formats.

Included on this page, you’ll find the essential financial statement templates, including income statement templates , cash flow statement templates , and balance sheet templates . Plus, we cover the key elements of the financial section of a business plan .

Financial Plan Templates

Download and prepare these financial plan templates to include in your business plan. Use historical data and future projections to produce an overview of the financial health of your organization to support your business plan and gain buy-in from stakeholders

Business Financial Plan Template

Business Financial Plan Template

Use this financial plan template to organize and prepare the financial section of your business plan. This customizable template has room to provide a financial overview, any important assumptions, key financial indicators and ratios, a break-even analysis, and pro forma financial statements to share key financial data with potential investors.

Download Financial Plan Template

Word | PDF | Smartsheet

Financial Plan Projections Template for Startups

Startup Financial Projections Template

This financial plan projections template comes as a set of pro forma templates designed to help startups. The template set includes a 12-month profit and loss statement, a balance sheet, and a cash flow statement for you to detail the current and projected financial position of a business.

‌ Download Startup Financial Projections Template

Excel | Smartsheet

Income Statement Templates for Business Plan

Also called profit and loss statements , these income statement templates will empower you to make critical business decisions by providing insight into your company, as well as illustrating the projected profitability associated with business activities. The numbers prepared in your income statement directly influence the cash flow and balance sheet forecasts.

Pro Forma Income Statement/Profit and Loss Sample

how to prepare financial plan for business

Use this pro forma income statement template to project income and expenses over a three-year time period. Pro forma income statements consider historical or market analysis data to calculate the estimated sales, cost of sales, profits, and more.

‌ Download Pro Forma Income Statement Sample - Excel

Small Business Profit and Loss Statement

Small Business Profit and Loss Template

Small businesses can use this simple profit and loss statement template to project income and expenses for a specific time period. Enter expected income, cost of goods sold, and business expenses, and the built-in formulas will automatically calculate the net income.

‌ Download Small Business Profit and Loss Template - Excel

3-Year Income Statement Template

3 Year Income Statement Template

Use this income statement template to calculate and assess the profit and loss generated by your business over three years. This template provides room to enter revenue and expenses associated with operating your business and allows you to track performance over time.

Download 3-Year Income Statement Template

For additional resources, including how to use profit and loss statements, visit “ Download Free Profit and Loss Templates .”

Cash Flow Statement Templates for Business Plan

Use these free cash flow statement templates to convey how efficiently your company manages the inflow and outflow of money. Use a cash flow statement to analyze the availability of liquid assets and your company’s ability to grow and sustain itself long term.

Simple Cash Flow Template

how to prepare financial plan for business

Use this basic cash flow template to compare your business cash flows against different time periods. Enter the beginning balance of cash on hand, and then detail itemized cash receipts, payments, costs of goods sold, and expenses. Once you enter those values, the built-in formulas will calculate total cash payments, net cash change, and the month ending cash position.

Download Simple Cash Flow Template

12-Month Cash Flow Forecast Template

how to prepare financial plan for business

Use this cash flow forecast template, also called a pro forma cash flow template, to track and compare expected and actual cash flow outcomes on a monthly and yearly basis. Enter the cash on hand at the beginning of each month, and then add the cash receipts (from customers, issuance of stock, and other operations). Finally, add the cash paid out (purchases made, wage expenses, and other cash outflow). Once you enter those values, the built-in formulas will calculate your cash position for each month with.

‌ Download 12-Month Cash Flow Forecast

3-Year Cash Flow Statement Template Set

3 Year Cash Flow Statement Template

Use this cash flow statement template set to analyze the amount of cash your company has compared to its expenses and liabilities. This template set contains a tab to create a monthly cash flow statement, a yearly cash flow statement, and a three-year cash flow statement to track cash flow for the operating, investing, and financing activities of your business.

Download 3-Year Cash Flow Statement Template

For additional information on managing your cash flow, including how to create a cash flow forecast, visit “ Free Cash Flow Statement Templates .”

Balance Sheet Templates for a Business Plan

Use these free balance sheet templates to convey the financial position of your business during a specific time period to potential investors and stakeholders.

Small Business Pro Forma Balance Sheet

how to prepare financial plan for business

Small businesses can use this pro forma balance sheet template to project account balances for assets, liabilities, and equity for a designated period. Established businesses can use this template (and its built-in formulas) to calculate key financial ratios, including working capital.

Download Pro Forma Balance Sheet Template

Monthly and Quarterly Balance Sheet Template

how to prepare financial plan for business

Use this balance sheet template to evaluate your company’s financial health on a monthly, quarterly, and annual basis. You can also use this template to project your financial position for a specified time in the future. Once you complete the balance sheet, you can compare and analyze your assets, liabilities, and equity on a quarter-over-quarter or year-over-year basis.

Download Monthly/Quarterly Balance Sheet Template - Excel

Yearly Balance Sheet Template

how to prepare financial plan for business

Use this balance sheet template to compare your company’s short and long-term assets, liabilities, and equity year-over-year. This template also provides calculations for common financial ratios with built-in formulas, so you can use it to evaluate account balances annually.

Download Yearly Balance Sheet Template - Excel

For more downloadable resources for a wide range of organizations, visit “ Free Balance Sheet Templates .”

Sales Forecast Templates for Business Plan

Sales projections are a fundamental part of a business plan, and should support all other components of your plan, including your market analysis, product offerings, and marketing plan . Use these sales forecast templates to estimate future sales, and ensure the numbers align with the sales numbers provided in your income statement.

Basic Sales Forecast Sample Template

Basic Sales Forecast Template

Use this basic forecast template to project the sales of a specific product. Gather historical and industry sales data to generate monthly and yearly estimates of the number of units sold and the price per unit. Then, the pre-built formulas will calculate percentages automatically. You’ll also find details about which months provide the highest sales percentage, and the percentage change in sales month-over-month. 

Download Basic Sales Forecast Sample Template

12-Month Sales Forecast Template for Multiple Products

how to prepare financial plan for business

Use this sales forecast template to project the future sales of a business across multiple products or services over the course of a year. Enter your estimated monthly sales, and the built-in formulas will calculate annual totals. There is also space to record and track year-over-year sales, so you can pinpoint sales trends.

Download 12-Month Sales Forecasting Template for Multiple Products

3-Year Sales Forecast Template for Multiple Products

3 Year Sales Forecast Template

Use this sales forecast template to estimate the monthly and yearly sales for multiple products over a three-year period. Enter the monthly units sold, unit costs, and unit price. Once you enter those values, built-in formulas will automatically calculate revenue, margin per unit, and gross profit. This template also provides bar charts and line graphs to visually display sales and gross profit year over year.

Download 3-Year Sales Forecast Template - Excel

For a wider selection of resources to project your sales, visit “ Free Sales Forecasting Templates .”

Break-Even Analysis Template for Business Plan

A break-even analysis will help you ascertain the point at which a business, product, or service will become profitable. This analysis uses a calculation to pinpoint the number of service or unit sales you need to make to cover costs and make a profit.

Break-Even Analysis Template

Break Even Analysis

Use this break-even analysis template to calculate the number of sales needed to become profitable. Enter the product's selling price at the top of the template, and then add the fixed and variable costs. Once you enter those values, the built-in formulas will calculate the total variable cost, the contribution margin, and break-even units and sales values.

Download Break-Even Analysis Template

For additional resources, visit, “ Free Financial Planning Templates .”

Business Budget Templates for Business Plan

These business budget templates will help you track costs (e.g., fixed and variable) and expenses (e.g., one-time and recurring) associated with starting and running a business. Having a detailed budget enables you to make sound strategic decisions, and should align with the expense values listed on your income statement.

Startup Budget Template

how to prepare financial plan for business

Use this startup budget template to track estimated and actual costs and expenses for various business categories, including administrative, marketing, labor, and other office costs. There is also room to provide funding estimates from investors, banks, and other sources to get a detailed view of the resources you need to start and operate your business.

Download Startup Budget Template

Small Business Budget Template

how to prepare financial plan for business

This business budget template is ideal for small businesses that want to record estimated revenue and expenditures on a monthly and yearly basis. This customizable template comes with a tab to list income, expenses, and a cash flow recording to track cash transactions and balances.

Download Small Business Budget Template

Professional Business Budget Template

how to prepare financial plan for business

Established organizations will appreciate this customizable business budget template, which  contains a separate tab to track projected business expenses, actual business expenses, variances, and an expense analysis. Once you enter projected and actual expenses, the built-in formulas will automatically calculate expense variances and populate the included visual charts. 

‌ Download Professional Business Budget Template

For additional resources to plan and track your business costs and expenses, visit “ Free Business Budget Templates for Any Company .”

Other Financial Templates for Business Plan

In this section, you’ll find additional financial templates that you may want to include as part of your larger business plan.

Startup Funding Requirements Template

Startup Funding Requirements Template

This simple startup funding requirements template is useful for startups and small businesses that require funding to get business off the ground. The numbers generated in this template should align with those in your financial projections, and should detail the allocation of acquired capital to various startup expenses.

Download Startup Funding Requirements Template - Excel

Personnel Plan Template

Personnel Plan Template

Use this customizable personnel plan template to map out the current and future staff needed to get — and keep — the business running. This information belongs in the personnel section of a business plan, and details the job title, amount of pay, and hiring timeline for each position. This template calculates the monthly and yearly expenses associated with each role using built-in formulas. Additionally, you can add an organizational chart to provide a visual overview of the company’s structure. 

Download Personnel Plan Template - Excel

Elements of the Financial Section of a Business Plan

Whether your organization is a startup, a small business, or an enterprise, the financial plan is the cornerstone of any business plan. The financial section should demonstrate the feasibility and profitability of your idea and should support all other aspects of the business plan. 

Below, you’ll find a quick overview of the components of a solid financial plan.

  • Financial Overview: This section provides a brief summary of the financial section, and includes key takeaways of the financial statements. If you prefer, you can also add a brief description of each statement in the respective statement’s section.
  • Key Assumptions: This component details the basis for your financial projections, including tax and interest rates, economic climate, and other critical, underlying factors.
  • Break-Even Analysis: This calculation helps establish the selling price of a product or service, and determines when a product or service should become profitable.
  • Pro Forma Income Statement: Also known as a profit and loss statement, this section details the sales, cost of sales, profitability, and other vital financial information to stakeholders.
  • Pro Forma Cash Flow Statement: This area outlines the projected cash inflows and outflows the business expects to generate from operating, financing, and investing activities during a specific timeframe.
  • Pro Forma Balance Sheet: This document conveys how your business plans to manage assets, including receivables and inventory.
  • Key Financial Indicators and Ratios: In this section, highlight key financial indicators and ratios extracted from financial statements that bankers, analysts, and investors can use to evaluate the financial health and position of your business.

Need help putting together the rest of your business plan? Check out our free simple business plan templates to get started. You can learn how to write a successful simple business plan  here . 

Visit this  free non-profit business plan template roundup  or download a  fill-in-the-blank business plan template  to make things easy. If you are looking for a business plan template by file type, visit our pages dedicated specifically to  Microsoft Excel ,  Microsoft Word , and  Adobe PDF  business plan templates. Read our articles offering  startup business plan templates  or  free 30-60-90-day business plan templates  to find more tailored options.

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How to Prepare a Financial Plan for Small Business?

Ajay Jagtap

  • December 18, 2023

11 Min Read

financial plan for small business

Let’s face it—accurate financial forecasting and planning isn’t everyone’s cup of tea, nor is it something someone would enjoy scratching their heads over.

In fact, it is considered to be the most difficult part of the business plan.

While it’s the most challenging aspect of business planning, it’s also the most important when convincing potential investors to invest in your business.

(You can’t simply ignore that!)

That’s why we decided to help you eat this giant frog at once. This is the ultimate guide to preparing a small business financial plan .

It will help you understand the critical components of financial planning, articulate quick steps to prepare a financial plan and provide a small business financial plan example to help you get started.

Sounds good? Let’s dive right in.

What is a Business Financial Plan?

A financial plan is an integral part of a business plan that helps determine if your business idea is sustainable and keeps you on track to financial health.

It’s the process of planning the financial aspects of a small business, which comprises its three major components: balance sheet, income statement, and cash-flow statement.

Besides these financial statements, this section may also include details about assets & liabilities, revenue and sales forecasts, break-even analysis, and others.

Key Takeaways

  • Cash flow projection, balance sheet, and income statement are considered to be the three core components of a financial plan.
  • Make sure to be realistic and conservative about your revenue forecasts; it is better to be surprised than disappointed.
  • Preparing a financial plan is easier and faster when you use a financial planning tool .
  • A clear market understanding, realistic assumptions, and thorough research are crucial to preparing reliable financial projections.

Why is Financial Planning Important to a Small Business?

It’s no secret and won’t come off as a big surprise that financial planning is crucial to building a successful business.

In fact, Y Combinator, a leading US startup accelerator, considered recent financial statements and projections to be critical elements of their Series A due diligence checklist .

A solid financial plan helps you manage cash flow, provides clear economic direction, helps you set realistic financial projections, and accounts for months when revenue might be lower than expected.

It helps you budget expenses, plan for yearly taxes, and show if your business is committed to its financial goals. It helps your investors understand where your business stands today and in 5 years.

Now that you know how important financial planning is for your small business, let’s head straight to discussing the critical elements of a financial plan.

Key Components of a Small Business Financial Plan

As mentioned earlier, cash flow projections, income statements, and balance sheets are three major components of a financial plan—but that’s not all. Here are all the key components you must consider including in your very own financial plan.

1. Income Statement

An income or profit and loss statement is a financial statement that shows any business’s income and expenditure over a specific time.

Your income statement also helps determine whether your business is making any profit or loss over a specific period—usually prepared at the end of the month, quarter, or year.

Your income or P&L statement must list the following:

  • Cost of goods or cost of sale
  • Operating expenses
  • Revenue streams
  • Gross margin
  • EBITDA (Earnings before interest, tax, depreciation, & amortization)

2. Cash flow Statement

A cash flow statement is yet another important financial statement that summarizes the amount of cash and cash equivalents entering and leaving a business over a given time.

cash-flow

Your cash flow statement will consist of the following three components:

  • Cash revenue projection
  • Cash disbursement
  • Cash flow reconciliation

Your company’s cash flow forecast can be critical while assessing your firm’s liquidity and ability to generate positive cash flows, pay off debts, and invest in growth initiatives.

3. Balance Sheet

A balance sheet is a financial statement that reports any company’s assets, liabilities, and shareholder equity at a specific point in time. Your balance sheet is one of three major financial statements used in evaluating your company’s performance.

This statement consists of three parts: assets, liabilities, and the balance calculated by the difference between the first two. The final numbers on this sheet reflect the business owner’s equity or value.

Balance sheets follow the following accounting equation with liabilities plus owner equity on one side and assets on the other.

Here is what the core purpose of having a balance sheet:

  • Indicates the capital need of the business
  • It helps to identify the allocation of resources
  • It calculates the requirement of seed money you put up, and
  • How much financing is required?

Considering it’s a critical element in helping investors understand the current condition of your business, this is something you can’t simply miss out on.

4. Break-even Analysis

A break-even analysis is referred to as a financial calculation that weighs the costs of a new business, product, or service against the unit sell price to determine a point at which you have sold enough units to cover all your costs.

break even

Your break-even point helps you understand when your investment is returned dollar-to-dollar, no more or less. This is the point where your small business is neither making profits nor burning cash.

However, anything you sell beyond that will result in profits.

Break-even analysis can be mandatory in situations when you either plan to expand your business, lower your pricing, or narrow down your business scenarios.

5. Sales forecast

Your sales forecast is a process of estimating your expected future revenue. It estimates how much your business plans to sell within the next month, quarter, year, or so. Your sales projection needs to be consistent with the sales number within your profit and loss statement.

Segmentation of these forecasts will depend on how closely you want to monitor your sales revenue. For instance, if you are a restaurant business, you may consider keeping catering and dine-in revenues separate from each other.

6. Expense Budget

expense breakdown

Managing expenses is one of the fundamentals of your financial plan, and it starts with an expense budget. The expense budgets can include operating expenses, direct costs, or repaying debts.

Consider it as an informed prediction of your future business expenses based on your research, experience, and common sense.

Having covered all the key elements of a solid financial plan, let’s discuss creating one.

How to Create a Financial Section of a Business Plan?

1. create a strategic plan.

A strategic plan helps you understand what you want to accomplish with your financial plan. You may consider your operational expenses, financing needs, objectives, and exit strategy while creating a strategic plan.

You can start by asking yourself a few questions, like how much financing you need, where most of your expenses go, and what other resources will you need.

Once you determine your financial needs, set realistic goals based on these requirements—identifying your business KPIs would make an excellent starting point.

2. Choose the Right Financial Planning Tool

It may take you forever to start and finish creating a financial plan using traditional and old-school methods.

It worked just fine earlier, but that’s not how you do it today.

Having a financial forecasting tool will not just simplify the process, but will also help speed things up. In fact, it’s the best way to prepare financial forecasts and meet financial obligations.

how to prepare financial plan for business

Create a Financial Plan with Upmetrics in no time

Enter your Financial Assumptions, and we’ll calculate your monthly/quarterly and yearly financial projections.

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Start Forecasting

3. Make Presumptions to Project Financials

Of course, Upmetrics will help with automatic and accurate forecasting, but at least you have to feed it some information to get started. Right?

That’s why the next step—making predictions about your business financials.

It’s just about predicting your business growth and financial future based on its current performance and past financial records, so no need to overthink or complicate things.

Start off by gathering historical financial data, conducting industry research, and compiling relevant documents about your business and industry.

Once you have developed rough assumptions and understand your business finances, you can start preparing financial projections.

4. Prepare Realistic Financial Projections

Here we come—discussing the most important steps of all. Although it’s challenging to get through, Upmetrics’ forecasting tool makes it relatively easier for rookie entrepreneurs to follow.

Upmetrics allows you to forecast financials for up to 7 years, while new startups usually consider planning only for the next five years.

However, this is something that varies from business to business based on their financial goals and investor specifications, so it’s up to you how you plan your projections.

Following are the two key aspects of your financial projections:

Revenue Projections

Since your revenue projections help investors understand how much revenue your business plans to generate in the near future, it’s an important one for them to consider.

It generally involves conducting market research, determining pricing strategy, and cash flow forecast—which we’ve already discussed in the previous steps.

The following would be the key components of your revenue projections:

  • Market analysis
  • Sales forecast
  • Pricing strategy
  • Growth assumptions
  • Seasonal variations

Expense Projections

Although both are different, revenue and expense forecasts are closely related to each other.

Similar to how revenue forecasts project revenue predictions, expense projections will predict expenses or future costs associated with operating a small business.

The following would be the key components of your expense projections:

  • Fixed costs
  • Variable costs
  • Employee costs or payroll expenses
  • Operational costs
  • Marketing and advertising expenses
  • Emergency fund

Remember, a clear understanding of your industry and market, realistic presumptions, and thorough research are the key to reliable financial projections.

5. “What if” Scenarios and Sensitivity Analysis

We learned to forecast financials, next—let’s discuss conducting sensitivity analysis to understand potential risks and opportunities involved in your business operations.

“What if” scenario or sensitivity analysis analyzes a business in three scenarios: best, expected, and worst-case. It increases transparency and helps investors and lenders understand your business’s future considering all three scenarios.

This proactive exercise will help make necessary adjustments to your financial plan and will be of incredible use in making strategic decisions.

6. Track Progress and Adjust Your Financial Plan

This may not sound like a necessary step while creating a financial plan, but it’s also an important one.

It’s critical to closely monitor your assumptions and make adjustments to make sure the assumptions you made are still relevant and you are heading in the right direction.

There won’t be any complex data analysis or big calculations, so worry not!

You simply have to compare your assumptions with the actual numbers to stay relevant. You may consider key business metrics to do so, like the number of customers acquired, cost per acquisition, or any other specific metrics.

Consider making adjustments if your assumptions do not resonate or match actual numbers.

And it was the last step in our financial plan writing guide. Next? Here’s a business financial plan example to help you get started.

Small Business Financial Plan Example

Since we’ve already learned about small business financial planning, let’s quickly review the coffee shop financial plan example created using Upmetrics:

Important Assumptions

  • The sales forecast is conservative and assumes a 5% increase in Year 2 and a 10% in Year 3.
  • The analysis accounts for economic seasonality – wherein some month’s revenues peak (such as holidays ) and wane in slower months.
  • The analysis assumes the owner will not withdraw any salary till the 3rd year; at any time, it is assumed that the owner’s withdrawal is available at his discretion.
  • Sales are on a cash basis – nonaccrual accounting.
  • Moderate ramp-up in staff over the 5 years forecast
  • Barista’s salary in the forecast is $36,000 in 2023.
  • In general, most cafes have an 85% gross profit margin.
  • In general, most cafes have a 3% net profit margin.

Projected Balance Sheet

balance-sheet

Projected Cash-Flow Statement

cash-flow

Projected Profit & Loss Statement

profit-and-loss

Break-Even Analysis

break-even

Improve Your Financial Planning with Upmetrics

What’s the best way to create a financial plan? If you had asked this question maybe a decade ago, I would definitely have said—EXCEL. Not today.

With the AI revolution and modern business & financial plan software, financial planning has never been this accurate before.

Want to improve your financial planning game? Upmetrics is the way to go. No manual calculations or preparing visual reports; simply enter your assumptions and watch things getting done.

What are you waiting for? Try Upmetrics for your business financial plan.

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Frequently Asked Questions

What components should be included in a business financial plan.

Your business financial plan should include the following six components:

  • Income statement
  • Cash flow projections
  • Break-even analysis
  • Balance sheet
  • Sales forecasts
  • Expense outlay

How often should I update my business financial plan?

Well, there is no certain rule about it. However, reviewing and updating your financial plan once a year is considered an ideal practice as it ensures that the financial aspirations you started and the projections you made are still relevant.

How to determine any business’s break-even point in a financial plan?

This is considered to be the formula for determining a break-even point: fixed costs ÷ gross profit margin = break-even point .

However, business plan tools like Upmetrics can automatically calculate different business ratios like break-even points and others.

What financial ratios should small businesses monitor in a financial plan?

There are multiple financial ratios, but here are some of the important ones for small business owners to consider:

  • Working capital
  • Return on equity
  • Debt-to-equity ratio
  • Net profit margin
  • Current ratio
  • Quick ratio
  • Return on assets
  • Debt-to-asset ratio

About the Author

how to prepare financial plan for business

Ajay is a SaaS writer and personal finance blogger who has been active in the space for over three years, writing about startups, business planning, budgeting, credit cards, and other topics related to personal finance. If not writing, he’s probably having a power nap. Read more

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How to Prepare a Financial Plan

Last Updated: August 19, 2021 References

This article was co-authored by Ara Oghoorian, CPA . Ara Oghoorian is a Certified Financial Accountant (CFA), Certified Financial Planner (CFP), a Certified Public Accountant (CPA), and the Founder of ACap Advisors & Accountants, a boutique wealth management and full-service accounting firm based in Los Angeles, California. With over 26 years of experience in the financial industry, Ara founded ACap Asset Management in 2009. He has previously worked with the Federal Reserve Bank of San Francisco, the U.S. Department of the Treasury, and the Ministry of Finance and Economy in the Republic of Armenia. Ara has a BS in Accounting and Finance from San Francisco State University, is a Commissioned Bank Examiner through the Federal Reserve Board of Governors, holds the Chartered Financial Analyst designation, is a Certified Financial Planner™ practitioner, has a Certified Public Accountant license, is an Enrolled Agent, and holds the Series 65 license. There are 8 references cited in this article, which can be found at the bottom of the page. This article has been viewed 39,314 times.

A financial plan is a saving instrument that can help you plan for major purchases or retirement. Whether you're saving for your children to go to college or working towards a down payment on a home, a financial plan can help you determine how much you'll need to start saving now to meet that goal. By framing your monthly expenditures and savings in the context of an overall plan, it will be much easier to meet your goals and attain financial security.

Determining Your Goals

Step 1 Assess your current financial situation.

  • The point here isn't to cut expenses, but rather to simply identify where you spend your money. You will have the option to cut expenses later on in your planning if you need to do so.
  • Budgets can be made using a spreadsheet program, a personal finance app, or by hand. [2] X Research source
  • If you have any debts that are increasing in size or currently going unpaid, prioritize paying these first over putting money into savings. Your debts will likely increase at a faster rate that your savings can, so be sure to take care of these first.

Step 3 Identify your goals.

Making a Plan

Step 1 Analyze potential returns.

  • Investment accounts can be useful for retirement savings, college funds, and other long-term goals. This type of account is not recommended for short or medium term goals.
  • For more, see how to invest in stocks.
  • A savings account will earn significantly less money than an investment account. However, the money in savings will be easier to access in an emergency and at very low (almost non-existent) risk for loss.

Step 2 Calculate monthly savings or contributions to meet your goals.

  • If you are saving for retirement, be sure to take into consideration any contribution matching that your employer offers. This can reduce your side of the savings burden. [6] X Research source

Step 3 Come up with several savings strategies.

  • You can also consider moving your savings directly to an investment account. This might introduce more risk but give you the chance to earn more interest. [7] X Research source

Step 4 Figure out which strategy is best.

Implementing Your Plan

Step 1 Start your plan immediately.

  • You may also find that your chosen strategy is ineffective in helping you reach goals. In this case, reevaluate your strategies and select a new one that you think will be more effective.

Step 4 Create an exit strategy.

Sample Financial Goals

how to prepare financial plan for business

Expert Q&A

Ara Oghoorian, CPA

  • Professional financial planners can charge as much as $2,000 for making a financial plan for you. Save some money and work it out yourself. [14] X Research source Thanks Helpful 0 Not Helpful 0

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  • ↑ https://www.missouristate.edu/assets/reallife/Creating_a_Personal_Financial_Plan.pdf
  • ↑ http://www.investinganswers.com/personal-finance/retirement-planning/8-steps-creating-smart-financial-plan-1022
  • ↑ Ara Oghoorian, CPA. Certified Financial Planner & Accountant. Expert Interview. 11 March 2020.
  • ↑ http://wealthpilgrim.com/creating-financial-plan/
  • ↑ http://www1.cbn.com/create-your-own-personal-financial-plan
  • ↑ http://novella.mhhe.com/sites/0079876543/student_view0/senior_experience-999/your_finances19/financial_planning.html
  • ↑ https://www.wellsfargo.com/financial-education/basic-finances/build-the-future/short-long-term-planning/financial-plan/
  • ↑ http://www.marketwatch.com/story/how-to-create-your-own-financial-plan-in-18-easy-steps-2016-01-05

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6 Steps to Develop a Financial Plan for Your Small Business

Create a financial plan in 6 steps, 1. open a business bank account and get a tax id.

It’s difficult enough to keep track of your personal expenses, and when you mix your business income with the money in your checking account, things can quickly get out of hand.

For this reason, we recommend you open a business account before opening your business to start with a clean slate. Then, apply for your Employee Identification Number (EIN), a.k.a., your business tax ID or ITIN. If you forget while operating as a corporation or partnership, you can get into a lot of trouble with the government.

2. Identify your funding sources

The second steps of your financial plan is identifying your funding sources. You’re going to need money to finance your startup, but what’s the best way to find it? There are actually multiple ways to finance your small business , and it depends on your personal style and how much money you’re currently worth. Here are a few popular ways entrepreneurs fund their startups:

  • Self-Financing – This can be risky, but there are multiple ways to accomplish your financial goals on your own. Whether you tap into your money market accounts, make use of credit cards, or take out a bank loan, almost any aspiring entrepreneur can find a way to finance their business themselves.
  • Friends & Family – Many entrepreneurs run into bad luck when trying to go it alone – let’s face it, life happens, and that savings account can suddenly empty out after an emergency. So, it’s not a bad idea to ask close friends and family for their help. In fact, you wouldn’t be alone; 68 percent of SMB owners have tapped into their immediate network to obtain funds. Just be confident it’ll work out, or else your personal relationships could suffer significantly.
  • Venture Capital – VC firms invest directly in companies that are first starting out in exchange for equity stakes. If you choose this option, keep in mind that the competition in this market is high, and they tend to pick those companies that show the most growth potential.
  • Small Business Administration Loans – These are commonly utilized loans that are offered by qualifying banks, nonprofit lenders, and credit unions. One popular loan is the 7(a) Loan Program, which offered an average of $337,730 per loan in 2012.

The above are just four ways to finance your business in its early stages.

3. Calculate expenses

What is the real cost of starting or operating a business ? Total expenses can be easily underestimated at the beginning of a business, so make sure to itemize every single thing you might need to invest in when you first start out – after all, this can be revised later as your business finds its footing. Here are just a few of the expenses you’ll want to consider for your startup:

  • Office equipment
  • Office supplies
  • Rent/Deposit
  • Web and logo design
  • Pre-opening marketing

Once you have the numbers, add these to your assets and recurring costs that keep your business going, and you will have your startup cost. You can also check out the Wall Street Journal calculator that help get you on the right track.

4. Create price points and profit margins

F igure out how much you'd like to make in profits. Once you decide how much you'd like to make in profits, you'll have to create a price point for your product that covers the expenses incurred in making the product and gives you the profit margin you're looking for. Not sure how to price your products or services? Follow these simple tips . And don't forget to add taxes to the equation for an accurate number.

5. Build a budget

  Building a budget is the most essential step in creating your financial plan. Take a look at the expenses such as product equipment, utilities and other services you pay for in order to maintain the business. Insurance and rent are major expenses for many businesses as well. Keep the budget in an Excel or Google spreadsheet, and factor in other items such as savings and an emergency fund. As a business owner, you really don't know what to expect: in the beginning stages, you may spend more money than you might have anticipated. For this reason, it's really good to have a financial cushion to make sure that the business is covered. 

6. Factor in advertising and promotion

Advertising and promotion are essential for growing your company. Because of this, it's so crucial for a small business to allocated a budget to cover marketing expenses . Most small business owners underestimate the power of a marketing budget to run the right ads and get in front of the right people. Thankfully, sites like Facebook and Instagram have excellent advertising programs that aren't nearly as expensive as creating a TV commercial. They work in the favor of the startup companies. However, it's still important to know that you'll get much farther as a company if there is a specified monetary amount to cover effective advertising and marketing campaigns.  In the end, you have to plan for where you want to go. It's important to factor in sustainability and growth for the company. Once you do this, you'll have an easier time focusing on outsourcing, product creation, and customer engagement. Before you know it, your small business will be making big financial moves.

Alex Briggs is a contributing author for Wages & Benham .

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How to create a financial plan for a new business

Table of Contents

Creating a financial plan for a new business: the essential steps

Form a strategy, financial objectives, pricing and sales strategy, starting budget, create realistic projections, income projections, cash flow projections, sales forecast, outline your funding needs , plan for the unexpected, check in with your plan, financial planning for new business success , track your financial plan with a clever app.

When you start a new business, your success depends on how you handle your money. With a clear and realistic financial plan, you can prepare for the long run with strong spending decisions and earning predictions.

Your financial plan helps you develop your business’s money goals and expectations . It’s crucial in making your money work for you. 

But if you’ve never written a financial plan before, you might wonder where to start. We can help with that.   

This guide covers how to create a financial plan for a new business, including:

  • Forming a strategy 
  • Creating projections 
  • Outlining funding needs
  • Planning for the unexpected 
  • Checking in with your plan

See also : Why you need financial planning in business .

With a well-developed financial plan, you can approach your business with intention. Let’s go over what you should include and how to do so. 

Your financial strategy is the overarching force that drives your plan. It answers key questions about the why and how of your business.

Start your financial strategy by listing the main objectives for your new business finances . You might come up with short, medium, and long term objectives to guide you in the right direction. 

First, ask yourself which general goals you want to focus on, such as becoming profitable. Then, turn this goal into a specific and achievable objective. For example, you might plan to earn X sales in X months to reach profitability . 

As you write the strategy, try coming up with five to ten main objectives that are realistic for your new business. 

Your pricing strategy can impact how many sales you earn for your business. So, how might you price your products to achieve your financial objectives?

For example, you could use a:

  • Penetration pricing strategy – offering lower prices than average at the start to draw in customers 
  • Competitive pricing strategy – listing your products above, below, or level to average pricing to give them a competitive edge
  • Premium pricing strategy – setting your prices higher than normal to suggest value or exclusivity 

On top of this, consider your sales strategy or what methods you’ll use to draw in customers and earn revenue. For example, you might use a reward system to encourage return customers . 

Your starting budget is another essential part of your financial strategy. 

It outlines how much you hope to spend and earn from your business initially . To form a realistic budget, consider your business expenses and how you’ll cover them to remain operational.  

To learn more, check out our article on budgeting for starting a business . 

Projecting the outcomes of your business efforts help you plan more realistically . Plus, they can convince potential investors your business is viable, and you’re worth giving money to. 

As you start your business, you’ll want to know how much you might earn in the first month, quarter, and year . This knowledge lets you predict how much money you could take home at the end of the day. 

To learn more about this, check out our article on how to create a financial forecast for a new business . 

Your cash flow forecast can help you predict the cash entering and exiting your business over a given time . This estimate is essential to determining how you’ll cover regular expenses. 

You might also strategise how to bring in the necessary cash regularly, such as following up on late invoices or promoting cash revenue. 

A sales forecast uses market size and demand to estimate how many customers you could draw in at the start . 

Creating one for your business helps predict profitability, sales trends, and create realistic expectations.  

To learn more, read our article on how to write a sales forecast .

You’ll likely need cash to get your business going. In this section, cover how much you’ll need to start, including startup costs, operational expenses, and a cushion before profit . 

You may try self-funding your business to avoid debts or liabilities . If so, outline a savings or funding plan. For example, you might crowdfund your startup idea. 

If you need external funding, there’s a few routes you can take. You might choose to seek: 

  • A business loan – The UK government offers startup loans for businesses. You could also seek a small business loan from a bank like Barclays .
  • An investor – If you create a convincing proposal, people may invest in your company in exchange for a piece of the business. 
  • Grants – Some government grants are available for startups , which could help you avoid taking on debt.
  • Family and friends – You might want to approach people you know well with your business idea as they could invest or offer you a personal loan.

A financial plan for a new business helps you prepare for the future. Still, there are bound to be unpredictable situations. So, in this section, consider potential risks to your finances. 

Preparing for the unexpected will help you avoid irreversible consequences that can harm your business . 

For example, you might want to develop an emergency fund and business continuity plan , so you’re ready to react to potential disruptions.  

Once you complete your financial plan, be sure to monitor its success. This way, you’ll catch yourself if you start to veer off the path. Then, it’ll be easier to correct yourself or create more realistic expectations before it’s too late . 

The plan acts as a guide to your finances, so regularly referring to it and updating it will help you keep your finances in order . 

Writing a financial plan for your new business lets you get on top of your finances early on. As a result, it’ll be far easier to build a profitable business that’s prepared to grow . 

In fact, planning is essential for every part of your operations. So, next, you might want to check out our article on how to write a business plan . 

As you put your financial plan together, you’ll need tools that help you track your progress, like Countingup.

Countingup is the business account and accounting software in one app . It automates time-consuming bookkeeping admin for thousands of self-employed people across the UK. 

Save yourself hours of accounting admin so you can focus on growing your business. 

Start your three-month free trial today. 

Apply now .

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How To Create Financial Projections for Your Business

Learn how to anticipate your business’s financial performance

how to prepare financial plan for business

  • Understanding Financial Projections & Forecasting

Why Forecasting Is Critical for Your Business

Key financial statements for forecasting, how to create your financial projections, frequently asked questions (faqs).

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Just like a weather forecast lets you know that wearing closed-toe shoes will be important for that afternoon downpour later, a good financial forecast allows you to better anticipate financial highs and lows for your business.

Neglecting to compile financial projections for your business may signal to investors that you’re unprepared for the future, which may cause you to lose out on funding opportunities.

Read on to learn more about financial projections, how to compile and use them in a business plan, and why they can be crucial for every business owner.

Key Takeaways

  • Financial forecasting is a projection of your business's future revenues and expenses based on comparative data analysis, industry research, and more.
  • Financial projections are a valuable tool for entrepreneurs as they offer insight into a business's ability to generate profit, increase cash flow, and repay debts, which can be attractive to investors.
  • Some of the key components to include in a financial projection include a sales projection, break-even analysis, and pro forma balance sheet and income statement.
  • A financial projection can not only attract investors, but helps business owners anticipate fixed costs, find a break-even point, and prepare for the unexpected.

Understanding Financial Projections and Forecasting

Financial forecasting is an educated estimate of future revenues and expenses that involves comparative analysis to get a snapshot of what could happen in your business’s future.

This process helps in making predictions about future business performance based on current financial information, industry trends, and economic conditions. Financial forecasting also helps businesses make decisions about investments, financing sources, inventory management, cost control strategies, and even whether to move into another market.

Developing both short- and mid-term projections is usually necessary to help you determine immediate production and personnel needs as well as future resource requirements for raw materials, equipment, and machinery.

Financial projections are a valuable tool for entrepreneurs as they offer insight into a business's ability to generate profit, increase cash flow, and repay debts. They can also be used to make informed decisions about the business’s plans. Creating an accurate, adaptive financial projection for your business offers many benefits, including:

  • Attracting investors and convincing them to fund your business
  • Anticipating problems before they arise
  • Visualizing your small-business objectives and budgets
  • Demonstrating how you will repay small-business loans
  • Planning for more significant business expenses
  • Showing business growth potential
  • Helping with proper pricing and production planning

Financial forecasting is essentially predicting the revenue and expenses for a business venture. Whether your business is new or established, forecasting can play a vital role in helping you plan for the future and budget your funds.

Creating financial projections may be a necessary exercise for many businesses, particularly those that do not have sufficient cash flow or need to rely on customer credit to maintain operations. Compiling financial information, knowing your market, and understanding what your potential investors are looking for can enable you to make intelligent decisions about your assets and resources.

The income statement, balance sheet, and statement of cash flow are three key financial reports needed for forecasting that can also provide analysts with crucial information about a business's financial health. Here is a closer look at each.

Income Statement

An income statement, also known as a profit and loss statement or P&L, is a financial document that provides an overview of an organization's revenues, expenses, and net income.

Balance Sheet

The balance sheet is a snapshot of the business's assets and liabilities at a certain point in time. Sometimes referred to as the “financial portrait” of a business, the balance sheet provides an overview of how much money the business has, what it owes, and its net worth.

The assets side of the balance sheet includes what the business owns as well as future ownership items. The other side of the sheet includes liabilities and equity, which represent what it owes or what others owe to the business.

A balance sheet that shows hypothetical calculations and future financial projections is also referred to as a “pro forma” balance sheet.

Cash Flow Statement

A cash flow statement monitors the business’s inflows and outflows—both cash and non-cash. Cash flow is the business’s projected earnings before interest, taxes, depreciation, and amortization ( EBITDA ) minus capital investments.

Here's how to compile your financial projections and fit the results into the three above statements.

A financial projections spreadsheet for your business should include these metrics and figures:

  • Sales forecast
  • Balance sheet
  • Operating expenses
  • Payroll expenses (if applicable)
  • Amortization and depreciation
  • Cash flow statement
  • Income statement
  • Cost of goods sold (COGS)
  • Break-even analysis

Here are key steps to account for creating your financial projections.

Projecting Sales

The first step for a financial forecast starts with projecting your business’s sales, which are typically derived from past revenue as well as industry research. These projections allow businesses to understand what their risks are and how much they will need in terms of staffing, resources, and funding.

Sales forecasts also enable businesses to decide on important levels such as product variety, price points, and inventory capacity.

Income Statement Calculations

A projected income statement shows how much you expect in revenue and profit—as well as your estimated expenses and losses—over a specific time in the future. Like a standard income statement, elements on a projection include revenue, COGS, and expenses that you’ll calculate to determine figures such as the business’s gross profit margin and net income.

If you’re developing a hypothetical, or pro forma, income statement, you can use historical data from previous years’ income statements. You can also do a comparative analysis of two different income statement periods to come up with your figures.

Anticipate Fixed Costs

Fixed business costs are expenses that do not change based on the number of products sold. The best way to anticipate fixed business costs is to research your industry and prepare a budget using actual numbers from competitors in the industry. Anticipating fixed costs ensures your business doesn’t overpay for its needs and balances out its variable costs. A few examples of fixed business costs include:

  • Rent or mortgage payments
  • Operating expenses (also called selling, general and administrative expenses or SG&A)
  • Utility bills
  • Insurance premiums

Unfortunately, it might not be possible to predict accurately how much your fixed costs will change in a year due to variables such as inflation, property, and interest rates. It’s best to slightly overestimate fixed costs just in case you need to account for these potential fluctuations.

Find Your Break-Even Point

The break-even point (BEP) is the number at which a business has the same expenses as its revenue. In other words, it occurs when your operations generate enough revenue to cover all of your business’s costs and expenses. The BEP will differ depending on the type of business, market conditions, and other factors.

To find this number, you need to determine two things: your fixed costs and variable costs. Once you have these figures, you can find your BEP using this formula:

Break-even point = fixed expenses ➗ 1 – (variable expenses ➗ sales)

The BEP is an essential consideration for any projection because it is the point at which total revenue from a project equals total cost. This makes it the point of either profit or loss.

Plan for the Unexpected

It is necessary to have the proper financial safeguards in place to prepare for any unanticipated costs. A sudden vehicle repair, a leaky roof, or broken equipment can quickly derail your budget if you aren't prepared. Cash management is a financial management plan that ensures a business has enough cash on hand to maintain operations and meet short-term obligations.

To maintain cash reserves, you can apply for overdraft protection or an overdraft line of credit. Overdraft protection can be set up by a bank or credit card business and provides short-term loans if the account balance falls below zero. On the other hand, a line of credit is an agreement with a lending institution in which they provide you with an unsecured loan at any time until your balance reaches zero again.

How do you make financial projections for startups?

Financial projections for startups can be hard to complete. Historical financial data may not be available. Find someone with financial projections experience to give insight on risks and outcomes.

Consider business forecasting, too, which incorporates assumptions about the exponential growth of your business.

Startups can also benefit from using EBITDA to get a better look at potential cash flow.

What are the benefits associated with forecasting business finances?

Forecasting can be beneficial for businesses in many ways, including:

  • Providing better understanding of your business cash flow
  • Easing the process of planning and budgeting for the future based on income
  • Improving decision-making
  • Providing valuable insight into what's in their future
  • Making decisions on how to best allocate resources for success

How many years should your financial forecast be?

Your financial forecast should either be projected over a specific time period or projected into perpetuity. There are various methods for determining how long a financial forecasting projection should go out, but many businesses use one to five years as a standard timeframe.

U.S. Small Business Administration. " Market Research and Competitive Analysis ."

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What is a financial plan?

A financial plan is a comprehensive picture of your current finances, your financial goals and any strategies you've set to achieve those goals. Good financial planning should include details about your cash flow, savings, debt, investments, insurance and any other elements of your financial life.

What is financial planning?

Financial planning is an ongoing process that looks at your entire financial situation in order to create strategies for achieving your short- and long-term goals. It can reduce your stress about money, support your current needs and help you build a nest egg for goals such as retirement.

Creating a financial plan is important because it allows you to make the most of your assets and gives you the confidence to weather any bumps along the way. You can make a financial plan yourself or get help from a financial planning professional. Online services like robo-advisors have also made getting assistance with financial planning more affordable and accessible than ever.

» Ready to get started? See our roundup of the best financial advisors

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via Zoe Financial

9 steps in financial planning

1. set financial goals.

A good financial plan is guided by your financial goals. If you approach your financial planning from the standpoint of what your money can do for you — whether that's buying a house or helping you retire early — you'll make saving feel more intentional.

Make your financial goals inspirational. Ask yourself: What do I want my life to look like in five years? What about in 10 and 20 years? Do I want to own a car, or a house? Do I want to be debt-free? Pay off my student loans? Are kids in the picture? How do I imagine my life in retirement?

Having concrete goals can make it easier to identify and complete the next steps, and provide a guiding light as you work to make those aims a reality.

Financial Goals: Where to Begin

How to Set Financial Goals

2. Track your money

Get a sense of your monthly cash flow — what’s coming in and what’s going out. An accurate picture is key to creating a financial plan and can reveal ways to direct more to savings or debt pay-down. Seeing where your money goes can help you develop immediate, medium-term and long-term plans.

For example, developing a budget is a typical immediate plan. NerdWallet recommends the 50/30/20 budget principles: Put 50% of your take-home pay toward needs (housing, utilities, transportation and other recurring payments), 30% toward wants (dining out, clothing, entertainment) and 20% toward savings and debt repayment. Reducing credit card or other high-interest debt is a common medium-term plan, and planning for retirement is a typical long-term plan.

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Budgeting 101: How to Budget Money

Free Budget Planner Worksheet

3. Budget for emergencies

The bedrock of any financial plan is putting cash away for emergency expenses. You can start small — $500 is enough to cover small emergencies and repairs so that an unexpected bill doesn’t run up credit card debt. Your next goal could be $1,000, then one month’s basic living expenses, and so on.

Building credit is another way to shockproof your budget. Good credit gives you options when you need them, like the ability to get a decent rate on a car loan. It can also boost your budget by getting you cheaper rates on insurance and letting you skip utility deposits.

How to Build Credit

Emergency Fund: What It Is and Why It Matters

Emergency Fund Calculator

4. Tackle high-interest debt

A crucial step in any financial plan: Pay down high-interest debt, such as credit card balances, payday loans, title loans and rent-to-own payments. Interest rates on some of these may be so high that you end up repaying two or three times what you borrowed.

If you’re struggling with revolving debt, a debt consolidation loan or debt management plan may help you wrap several expenses into one monthly bill at a lower interest rate.

Pay Off Debt: Tools and Tips

How to Pay Off Debt Fast: 7 Tips

5. Plan for retirement

If you visit a financial advisor , they will be sure to ask: Do you have an employer-sponsored retirement plan such as a 401(k) , and does your employer match any part of your contribution? True, 401(k) contributions decrease your take-home pay now, but it’s worth it to consider putting in enough to get the full matching amount. That match is free money.

If you have a 401(k), 403(b) or similar plan, financial advisors also generally suggest that you gradually expand your contributions toward the IRS limit. $23,000 in 2024 ($30,500 for those age 50 or older)

Another savings vehicle for retirement planning is an IRA , or individual retirement arrangement. These tax-advantaged investment accounts can further build retirement savings. The contribution limit is $7,000 in 2024 ($8,000 if age 50 or older) .

How Much Should I Contribute to a 401(k)?

IRA Contribution Limits Explained

6. Optimize your finances with tax planning

For many of us, taxes take center stage during filing season, but careful tax planning means looking beyond the Form 1040 you submit to the IRS each year.

For example, if you're netting a sizable refund each year, you may be needlessly living on less throughout the year. Learning how and when to review your W-4 , the form you fill out with employers, can help you to take control of your future. Adjust your withholdings on your W-4, and you either can keep more of your paycheck, or pay a smaller tax bill.

Getting cozy with the tax law also means looking into tax credits and deductions ahead of time to understand which tax breaks could make a difference when it comes time to file. The government offers many incentives for taxpayers who have children, invest in green home improvements or technologies, or are even pursuing higher education.

Tax Planning for Beginners: 6 Tax Strategies & Concepts to Know

Federal Brackets and Income Tax Rates

20 Popular Tax Deductions and Tax Credits

7. Invest to build your future goals

Investing might sound like something for rich people or for when you’re established in your career and family life. It’s not. Investing can be as simple as putting money in a 401(k) and as easy as opening a brokerage account (many have no minimum to get started). Financial plans use a variety of tools to invest for retirement, a house or college.

How to Invest Money: Choosing the Best Way To Invest for You

How To Invest in Stocks

Saving for Education: 529 Plan Rules and Contribution Limits

8. Grow your financial well-being

With each of these steps, you're protecting yourself from financial setbacks. If you can afford it, decide whether you'd like to do more, such as:

Increasing contributions to your retirement accounts.

Padding your emergency fund until you have three to six months of essential living expenses.

Using insurance to protect your financial stability, so a car crash or illness doesn’t derail you. Life insurance protects loved ones who depend on your income. Term life insurance, covering 10-year to 30-year periods, is a good fit for most people’s needs.

Backdoor Roth IRA: What It Is and How to Set One Up

What Is Life Insurance and How Does It Work?

9. Estate planning: Protect your financial well-being

Financial planning also means looking out for your future needs, as well as mapping things out for your loved ones. Creating a will can help ensure your assets are distributed according to your wishes. Other types of estate-planning documents can also provide your relatives with clarity on how you would like to be cared for, and who should manage your affairs.

Estate Planning Checklist

Estate Tax Planning: How Does Your Strategy Look?

how to prepare financial plan for business

Types of financial planning help

A financial plan isn’t a static document — it's a tool to track your progress, and one you should adjust as your life evolves. It's helpful to reevaluate your financial plan after major life milestones, such as getting married, starting a new job, having a child or losing a loved one.

If you're not the DIY type — or if you want professional help managing some tasks and not others — you don't have to go it alone. Consider what kind of help you need:

Complete financial plan and investment advice

Online financial planning services offer virtual access to human advisors. A basic service would include automated investment management (like you’d get from a robo-advisor), plus the ability to consult with a team of financial advisors when you have other financial questions. More comprehensive providers basically mirror the level of service offered by traditional financial planners : You're matched with a dedicated human financial advisor who will manage your investments, create a comprehensive financial plan for you, and do regular check-ins to see if you're on track or need to adjust your financial plan.

» Want to work with a local advisor ? Learn how to find a financial advisor near you

Specialized guidance and/or want to meet with an advisor face-to-face

If you have a complicated financial situation or need a specialist in estate planning, tax planning or insurance, a traditional financial advisor in your area may fit the bill. To avoid conflicts of interest, consider fee-only financial advisors who are fiduciaries (meaning they've signed an oath to act in the client's best interest). Note that some traditional financial advisors decline clients who don’t have enough to invest; the definition of “enough” varies, but many advisors require $250,000 or more. If you want to know more about how much seeing an advisor will cost, read our guide to financial advisor fees .

» Need some help? Check out our roundup of the best wealth advisors

Portfolio management only

Robo-advisors offer simplified, low-cost online investment management. Computer algorithms build an investment portfolio based on goals you set, and your answers to questions about your risk tolerance. After that, the service monitors and regularly rebalances your investment mix to ensure you stay on track. Because it's all digital, it comes at a much lower cost than hiring a human portfolio manager.

» Need help investing? See our list of the best robo-advisors

Why is financial planning important?

Financial planning can help you feel more confident about navigating bumps in the road — like, say, a recession or historic inflation . According to Charles Schwab's 2023 Modern Wealth Survey, Americans who have a written financial plan feel more in control of their finances compared with those without a plan [0] Charles Schwab . Charles Schwab Modern Wealth Survey 2023 . Accessed Aug 7, 2023. View all sources .

Once your basic needs and short-term goals have been addressed, a financial plan can also help you tackle big-picture goals. Thoughtful investing, for example, can help build generational wealth , and careful estate planning can ensure that wealth gets passed down to your loved ones.

On a similar note...

Find a financial advisor

View NerdWallet's picks for the best financial advisors.

how to prepare financial plan for business

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Run » finance, how often should you revisit your financial plan .

Most experts say you should review your financial plan annually, if not more frequently.

 A young couple review their budget in the living room of their home. There are papers spread out on a coffee table next to an open laptop computer.

Financial plans are used by individuals and businesses to create benchmarks along the pathway to achieving a specific financial outcome, such as saving for college, expanding to a new location, or retirement. A financial plan includes budget and cash flow projections; debt management; and short-, medium-, and long-term goals that are usually stated in terms of profit.

Most business owners revisit their financial plans annually, with some exceptions. Here are some key moments when you should consider reviewing your financial plan to stay on track.

Annually: Review your goals and projections

Most experts recommend revisiting your long-term goals and financial projections once a year. This gives you enough time to spot patterns in sales or spending in addition to determining whether your financial goals are still relevant.

“If you're still using the financial plan you created two or three years ago, it may not align with your current goals or needs. Financial pictures change rapidly, so it's important to take an in-depth look each year,” wrote The Ascent .

Once a year, compare your business’s financial statements, such as your balance sheet, income statement, and cash flow statement, with your budgets and forecasts. Evaluate why your projections might be different than your actual financial results, and revise your forecast and strategy as necessary.

[Read more: Business Plan Financials: 3 Statements to Include ]

Revisiting your projections too often can be misleading. By waiting until you have a full year of data, you can better account for seasonal highs or lows in sales, big purchases that may cause short-term spending spikes, or macroeconomic changes (such as supply chain delays).

If you're still using the financial plan you created two or three years ago, it may not align with your current goals or needs. Financial pictures change rapidly, so it's important to take an in-depth look each year.

Quarterly: Review your financial forecast and industry benchmarks

That’s not to say you shouldn’t keep an eye on your financial performance throughout the year. Benchmarking helps determine whether your business results are normal or if there are deeper problems you need to diagnose — and it’s worth keeping an eye on these figures quarterly.

“Benchmarks display data about similar companies to help you compare your business with what’s considered normal for your market. It’s a useful way to look at projections and add credibility to your plan, but it’s always important to remember that there’s no business out there exactly like yours,” wrote The Savvy Bookkeeper.

Consider benchmarking against your historical performance, too, to see if any movement you’re seeing in sales or spending is in line with seasonal or market trends. Revisit your financial forecast with this information to determine whether you should ramp up or cut back spending.

[Read more: CO— Roadmap for Rebuilding: Mapping Your Financial Future ]

Monthly: Review your budget

Check your budget every month to make sure there are no surprises at the end of the year. Review your spending to keep your finances under control, and make sure you’re aware of any cash flow issues before they become bigger problems.

The No. 1 reason why small businesses fail is cash flow . Getting in the weeds of your financial statements can help you stay afloat and identify when extra funding would be useful.

After major events: Review your entire plan

There are certain moments when it might make sense to review your plan, regardless of the time of year. External events or life events can cause you to reconsider where your financial priorities lie, personally and professionally.

“All throughout life, things are going to change,” said Jordan Patrick, CFP, the Senior Financial Adviser at Use Commas . “You’re going to have different desires. You’re going to have different priorities. You’ll want something that you didn’t want in the past, or vice versa — you’ll not want something that you did want before. It could be losing a job. It could be growing your family.”

Consider reviewing your business’s financial plan after a merger or acquisition, bringing on a new partner, during succession planning, or after an external event (such as a natural disaster, a drop in the stock market, or a global pandemic). Personal events, such as retirement, marriage, and expanding your family, can also be a cause for reviewing your financial plan.

“Major life events are good reasons for a financial checkup even if it’s been less than a year from your previous review,” wrote Farm Bureau Financial Services .

Your financial plan is meant to be a living document. Manage it actively to make sure it still serves your business needs.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here .

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How to write the financial section of a business plan

How to Write the Financial Section of a Business Plan

When you are starting a small business or a startup, you will need to make financial projections for your business.

What is Financial Plan in Business Plan?

How to write a business plan financial section, profit and loss statement.

  • Cash Flow Statement
  • Balance Sheet
  • Sales Forecast
  • Personnel Plan

Breakeven Analysis and Business Ratios

Frequently asked questions (faqs).

Financial plan in business plan helps understand the chances of your business becoming a financial success. Investors want to see a financial plan to know how much money they’ll invest and what the expected return over investment is for them.

We have briefly discussed the process of writing a financial plan in business plan. One thing that can make or break your financial plan in business plan is your honesty about numbers.

Try not to be over-optimistic. See the growth pattern of similar businesses and project closely to them. Don’t overestimate the effects of your competitive advantage.

financial plan in business plan

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A financial plan in business plan is an overview of your business financial projections.

Business plan financial projections include financial reports including Profit & Loss, cash flow statement, and balance sheet.

A financial plan will also discuss sales forecast, employees’ salaries and other expenses forecast, business breakeven analysis, and important business rations that help measure growth.

A business plan financial section is about making simple forecasts and creating a few financial reports. You don’t need to know accounting, nor is it necessary for creating financial projections.

We have outlined and simplified the process of creating a financial plan for business plan. Simply follow the process and take help from our examples and templates to write an excellent financial plan section of a business plan.

How to write a financial analysis for a business plan

Review your Business Goals and Strategic Plan

You have set business goals in your business plan. A strategic plan is how you will navigate to financial success. 

Everything in a business plan that contributes toward your business goals. Before writing financial projections, consider these goals and milestones:

  • Expansion plans 
  • Adding more people to your team 
  • Resources required to meet your business goals 
  • Cash flow needs of your business in the short and long term
  • Financing needs to meet business goals 

Create Financial Projections

 Financial projections in a business plan will include the following:

  • Profit and loss statement

Cash Flow Statement 

Sales forecast .

  • Business Ratios and Breakeven Analysis 

We will explore each in detail in the following section. By the end of the article, you will fully understand how to create financial plan in business plan. 

A profit and loss statement is the first financial report you will create when writing financial plan in business plan.

A profit and loss statement reports your business income or loss over a certain period of time.

Profit and loss statement is also known by other names including its short form i.e., P & L statement, income statement, and pro forma income statement.

A profit and loss statement includes total revenues, expenses, and costs. A P&L statement is made for different time intervals like quarterly, bi-annual and annual. It shows net income after the cost of goods sold, expenses, taxes, depreciation, and amortization.

Before creating a P&L statement for your business, you may need to look for the right format for your business structure. For example, you will need a different format for a profit and loss statement for a sole proprietorship and a different one for an LLC.

Check income statement examples to understand and create one yourself. 

Profit and Loss Statement Template

Download our free profit and loss statement templates &  examples, and make a professional income statement for financial plan in business plan. 

Parts of a Profit and Loss Statement 

Every profit and loss statement includes the following elements:

  • Total Revenues 
  • Cost of Sales or Cost of Goods Sold 
  • Gross Margin 

Depending on the business type, a P&L statement may include insurance, taxes, depreciation, and amortization. Make sure to include a forecast for all heads in financial plan in business plan.

Calculate Operating Income 

Start your profit and loss statement by calculating operating income; use this formula. 

Gross Margin – Operating Expenses = Operating Income

Typically, operating income is equal to EBITDA (earnings before interest, taxes, depreciation, and amortization). 

Operating income is also called the gross profit and it does not deduce taxes or other accounting adjustments from the income.

Calculate Net Income 

Use this formula to calculate net income. 

Operating Income – (Interest + Taxes + Depreciation + Amortization Expenses) = Net Income

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A cash flow statement is typically prepared every month. You can create monthly and quarterly cash flow statement in financial plan in business plan.

A cash flow statement informs about the cash your business brought income, the cash it paid out, and how much is still available with the bank.

A cash flow statement gives an understanding of your income sources and expenses. When you forecast your financial reports, a cash flow statement will show your expected income sources and expenses.

A cash flow statement will help potential lenders and investors understand how you plan to make money. It provides reliable data about cash in and cash out. Keep it realistic and in line with the industry number for the most part. An exception may be an innovation or a breakthrough you bring to the market.

Your profit and cash flow are not the same. It is possible to have a cashless, profitable business or a business in loss with plenty of cash. A good cash flow helps you keep your business open and turn things around.

A cash flow statement also reflects your behavior with money. It shows if you spend on spur of the moment or think strategically. When creating a cash flow statement in a business plan, you will need to understand two basic concepts of accounting; cash accounting and accrual accounting.

Professional Business Templates for Small Businesses

Check our extensive library of business templates for small businesses and make use of the templates and examples in writing your business plan.

Difference between Cash and Accrual Accounting 

The difference between cash and accrual accounting is Accrual accounting records revenues/income and expenses when they occur while cash accounting records income/revenue and expenses when the money actually changes hands. 

You will need to decide if you will use cash accounting or accrual accounting. However, the final choice will depend on your business type and product. 

For example, you are selling tickets to a show or you are taking preorders for your new product. Under cash accounting, you will record all income now and expenses when you have actually shipped the product or organized the show. 

However, with accrual accounting, you will record both income and expenses when you have shipped the product or held the show. 

Here, cash accounting will show the months with cash abundance as profitable and the months of spending, like shipping of the products of event organization, as a loss. It is hard to see a pattern and get actionable insight with cash accounting. 

It is a good time to decide about the accounting method you will use when you are writing a financial plan in business plan. 

Check with your accounting consultant and discuss accrual and cash accounting to select the one most suitable for your business.

Balance Sheet 

A balance sheet is a summary of the financial position of your business. 

A balance sheet includes assets, liabilities, and equity. A balance sheet is based on this formula and it is always equal on both sides of the equation. 

Assets = Liabilities + Equity

Here, Assets include your inventory, cash at hand and bank, property, vehicles, accounts receivables, etc. Liabilities are debts, loans and account payables. Equity includes shares proceeds, retained earnings, and owner’s money. 

Download Balance Sheet Template from WiseBusinessPlan and make a balance sheet easy. 

A sales forecast is your projection about the sales you will make in a certain time. Investors and lenders will be interested in seeing your sales forecast. They will estimate your chances of meeting the forecast and projections. 

Keep your sales forecast consistent with the financial reports like the cash flow statement and profit & loss statement.

How To Make A Sales Forecast For A Business Plan?

First, decide the period for the sales forecast, like one month or a quarter. Then, do the following steps to make a sales forecast for that period. 

  • List goods or services your business sells
  • Forecast sales for each product or service 
  • Set per unit price for your goods or services 
  • Find sales volume by multiplying units sold with unit price 
  • Calculate the cost of goods sold 
  • Multiply the cost of goods sold by the number of units sold, this is your total cost 
  • Take the total cost amount from the total sales amount

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Personnel Plan 

A personnel plan shows the costs and value of the employees you will hire. 

Very small businesses, startups, or solopreneurs may not need a personnel plan but any business with employees, or plans to hire employees, will need this. 

Forecast the cost of each employee and the value they will provide. You don’t need to discuss everything about employees, just do a short cost-benefit analysis for each position or employee.

Breakeven analysis tells you the number of sales you need to bring in to cover all of your business expenses. 

Use this formula to calculate the breakeven point for your business. 

Break-Even Point (units) = Fixed Costs /  (Sales price per unit – Variable costs per unit) 

Business ratios are like signals for your business. You can quickly spot a growth or fall with a ratio. Some business ratios also help you see business health. 

You are not required to include business ratio forecasts however, it is good to know about them when writing a business plan. 

Here are some of the most used business ratios.

  • Gross margin
  • Return on sales
  • Return on assets
  • Return on investment
  • Debt-to-equity
  • Current ratio
  • Working capital
  • gross margin
  •  return on investment (ROI)
  • Debt-to-equity.

Use Financial Plan as a Tool for Business Management

One mistake that most people make is thinking that building a business plan is a one time thing. 

Your business plan and your financial projections can help you measure your business growth. You can use these numbers as a yard stick to see if you are meeting your projections or not. 

Here is how you can your business plan as a management tool for your business. 

Schedule monthly and quarterly business review meetings. Compare your actual data for that period with your forecast data and see how you are moving towards your business goals. Adjust your forecast or projections with the help of actual data to keep your growth trajectory in the right direction.

Hire our professional who can help write a business plan !

The financial section of a business plan should include key financial statements such as the income statement, balance sheet, and cash flow statement. It should also provide details on projected sales, expenses, and profitability, along with any assumptions or financial ratios used.

Forecasting sales and revenue involves analyzing market research, understanding your target audience, and considering factors such as pricing, competition, and marketing strategies. Utilize historical data, industry benchmarks, and realistic growth assumptions to estimate future sales figures.

In addition to sales and revenue projections, the financial section should include projected expenses, such as operational costs, marketing expenses, and overheads. It should also outline anticipated profits, cash flow projections, and return on investment (ROI) calculations.

Yes, including a break-even analysis is important as it helps determine the point at which your business will start generating profits. It identifies the sales volume needed to cover all expenses and provides insights into the viability of your business.

Supporting documents may include historical financial statements, tax returns, cash flow statements, balance sheets, and any other relevant financial records. Additionally, include details about any loans, investments, or funding sources that contribute to the financial projections.

Loving the information on this web site, you have done great job on the content.

I thought of the same thing before reading this blog that a business plan is a one-time thing but now I know that a business plan and financial projections can really help you measure business growth. Let me just change my stance from now onward.

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I'm a financial planner — I have 4 tips for my business owner clients looking to open a business bank account

Our experts choose the best products and services to help make smart decisions with your money ( here's how ). In some cases, we receive a commission from our partners ; however, our opinions are our own. Terms apply to offers listed on this page.

  • Legally protecting yourself in case of an audit is the No. 1 reason to use a business bank account.
  • Different banks will offer different levels of convenience, and they'll come with different fees.
  • Fraud detection and other security features are especially important for protecting your business.

Insider Today

When starting a business, it can be overwhelming thinking about all the things you need to do and consider. However, it is essential that you do not overlook the value of opening a business bank account — usually both a business checking account and a high-yield business savings account .

As a CPA and financial planner, one of the first things I tell all my business owner clients to do is to keep their personal and business transactions separate. While there are a multitude of reasons you should have a separate bank account for your business, legal protection is certainly the most important.

If you experience an audit, it is important to have an easy way to track your business expenses and income. When business finances are commingled with personal finances, it becomes nearly impossible to provide a clear financial trail.

When choosing a business bank account, there are several important factors to consider. Here are four things I tell my business owner clients to consider when choosing a business bank account.

1. Access to banking services and customer service

When it comes to running a business, a variety of banking services can help you effectively manage your business finances. Beyond just opening a business bank account, you want to ensure that the financial institution you choose can provide access to services such as a checking account, savings account, business loans , wire transfers, fraud prevention services, a notary, checkbooks, business credit cards , online and mobile banking, and bill payment services.

If you want more one-on-one attention from a banker, consider opening an account with your local bank or credit union. You may also prefer a physical branch if you plan to make daily deposits or withdrawals of cash or checks.

This may be more challenging to do with an online bank. Many online banks may offer deposits and withdrawals, but their ATM network may not be as large as a well-known brick-and-mortar bank. For this reason, some small business owners open an account at their local bank where they have their personal accounts and know the level of customer service they will receive.

Consider opening your business checking and savings accounts at different financial institutions so that you can have access to both better banking services at a physical branch and higher interest rates at an online bank.

2. Terms and fees (including minimum balance)

The fees associated with business bank accounts can vary widely depending on the financial institution. Some of the most common fees to be aware of include monthly maintenance fees, overdraft fees , wire transfer fees, minimum balance fees, and ATM fees.

You may find that online banks charge fewer fees than brick-and-mortar banks, but you must consider this in conjunction with the other features.

Seek an account with reasonable fees that can accommodate your business.

3. Ease of paying contractors

Some business bank accounts, especially online accounts, offer free invoicing and bookkeeping software/features.

If you use accounting software (such as QuickBooks) to manage your business finances, accessing a business bank account that offers integration features may be desirable. Trust me, this will make your or your accountant's life much easier.

In addition, some accounts allow integrations with payroll and tax preparation software. This will help to make the process of paying contractors with 1099s more seamless.

4. The bank's security offerings

One of the most important things you should consider when choosing a business bank account is security. There are certain features that you want to look for to make sure your account is protected.

First, you want to make sure that the bank you choose is FDIC-insured (or NCUA-insured if a credit union). In addition, you want to make sure that the institution has additional layers of security such as multi-factor authentication and fraud detection services, which include account monitoring and alerts for suspicious activity.

Ensure that whatever bank you choose offers the best security features to protect your business from fraud.

When choosing a bank account, consider all the various banking features offered by different financial institutions to find the one that best suits your business's financial needs. Also, remember that your decision is not permanent. It is easy to switch banks if necessary.

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How To Financially Prepare To Quit Your Job And Start Your Dream Business

I f the word “entrepreneur” has been floating around in your head recently, or if you have an idea for a business you think would really take off, you are also likely facing concerns about how you could prepare yourself financially to make that dream business come true. Between rent payments, grocery bills and ever-fluctuating utility prices, actually leaving your full-time job to pursue your dream of starting your own business may feel out of reach.

The good news is, there are steps you can take to plan ahead so you can focus on building your business without having to worry about paying the bills. We spoke with entrepreneurs who have taken the leap and they shared their best tips for financially preparing to set out on your own.

1. Start aggressively saving.

After spending nearly a decade working in finance as a balance sheet strategist for an investment bank, entrepreneur Amanda Gilman found herself becoming unfulfilled at work and day dreaming about her side passion: making healthy snacks that fueled her during the work day. After exploring a few recipes, she created AMG Snacks in 2019, which is now in more than 200 retail locations.

While it might seem like an obvious first step, creating a savings plan with specific goals will lay the foundation upon which you can build up your business.

“I’ve always been a saver,” Gilman said. “Since I thought about creating this business for a year, I prepared to have enough money to cover expenses for two years and gave myself that time frame to leave and work on this company.”

2. Embrace the side hustle.

Maude Gagnon had known she wanted to run her own cookie business since she was in middle school, so she started Southie Cookie , a bespoke cookie bakery in South Boston, as a side hustle in 2020. After working her day job as a marketing coordinator, she would head to a local kitchen, where she’d often bake until well past midnight. By using her marketing industry income to financially support her, she was able to fully explore her Southie Cookie concept.

“Doing it on the side was a great option for me because it allowed me to learn, make mistakes, and grow my business savings account while being comforted by the fact that I had a stable income coming in from my 9-to-5,” she said. “Because of this safety net, I was able to enter this new world slowly and safely, yet fiercely.”

After two years of working two jobs, Gagnon officially quit her day job to run Southie Cookie full time in March 2023.

Hire a financial adviser.

Financial advisers play key roles in helping businesses get off the ground and see long term success by providing financial guidance and expertise that can be helpful in making decisions around money matters, personal finances, and investments.

As Gilman can attest, financial advisers can also help you keep your head on straight. “I found [one] I trusted [to] help me take anything emotional out of the process and figure out what I was getting myself into logically and practically,” she said.

If finance is not your strong suit don’t worry, Gagnon said. She was able to launch her business using Excel, and later, Quickbooks, to help track sales. She also took advantage of online business courses, workshops and mentoring opportunities. It may not be the most fun, she said, but your numbers tell you the health and direction of your business.

“All you need is an Excel sheet,” Gagnon added. “If you can keep track of your sales, expenses, your inventory in dollar amount at the beginning of the month and your inventory in dollar amount at the end of the month, you’re off to a good start.”

3. Establish a financial plan.

Setting out on your own can be incredibly stressful, which increases the likelihood of experiencing mental health challenges.

“You constantly ask yourself, ‘Am I doing the right thing?’ ” Gilman said. “I got through it by telling myself, ‘I’ve prepared for this. I want to experience this so I have no regrets looking back, and I can always get another job using the skills I’ve developed over the years.’”

To help you deal with the stress, Gilman recommends establishing a clear financial plan and sticking to it.

“The financial plan could include utilizing savings, adjusting to a new income level, or taking on a part-time job,” she said. “But the key is to make sure you have a plan to get you through the beginning stages while your company is first taking off.”

The post How To Financially Prepare To Quit Your Job And Start Your Dream Business appeared first on Her Agenda .

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