Category: Business Owner

The Role of the Finance Division in Making a Business Plan

October 14, 2007July 27, 2022 Rihanna

A business plan is a plan that must be made by a company so that its business program is more focused on the future. In a business plan, there is a revenue projection section and business financial planning.

A business plan is only a conceptual or verbal guide until some numbers are included to complete the estimate.

The finance section in a business plan will always play an important role because finance is one of the components that determine the possibility of financing all plans.

The finance department will also determine how good financial planning is so that it can be used as a proposal to submit additional funds to banks and other investors.

The following is an important role for the finance department as well as financial reports. To determine good financial planning in a business plan.

Start with a Sales Forecast

Prepare a spreadsheet or columnar sheet on which to project your sales over the next three years. Prepare different sections for different sales lines and columns for each month for the first, second, and third year. The estimates you should have in your spreadsheet include unit sales, prices, x unit prices, and unit costs.

Calculating the cost of sales in the estimated sales transaction will let you know the estimated gross profit earned by the company in the planning period.

Make a Budget before the Projected Business Income Plan

An expense budget is needed so that you understand how much finance it will take to make the sales you’re estimating.

In this cost budget, you usually have to distinguish between fixed costs. Such as rent and payroll, and variable costs, such as advertising and promotion costs.

A lower estimate of fixed costs in a business plan indicates less financial risk.

Develop a Cash Flow Statement

One of the important things in the issue of investment policy is to estimate the expenditure of money that will be received from the investment in the future.

To evaluate various alternatives for budgeting for capital goods/investments. The company must determine the appropriate cash flow, namely data on net cash flow from an investment.

Analysis of the company’s cash flow can be used as a basis for research to see the extent to which business activities can accumulatively cover the funds invested to drive the company’s operational activities.

Projected Business Income Plan

This is a pro forma profit and loss, and a detailed forecast of your business for the next three years.

However, what is a pro forma invoice? A Proforma invoice means a type of temporary invoice that is issued before the delivery of the goods in their entirety. Its purpose is to provide an overview of the costs of products and services.

Then to calculate projected income in a business plan. You can use the numbers that have been included in your sales forecast, projected expenses, and cash flow statement.

Calculating Assets & Liabilities

To have a good business plan, you must know how much the value of assets and liabilities that the company still has. By knowing the value of the company’s assets. You can have a prediction of the costs required to maintain these assets.

Do you have to buy new assets or eliminate the budget for some asset items because they are no longer needed by the company? Then find out what you have as a liability which means debt. Both from the purchase debt that you have not paid off or from a business capital loan.

By knowing the company’s liabilities, you will know the finances that must be set aside to make it part of the financing budget.

Breakeven Point Analysis

When your company has made sales in the previous year and has a proven cost calculation at the breakeven point. Then you can continue the analysis as part of the business plan for the following year.

Making a breakeven point analysis is useful if you have plans to get additional funds in the form of investments from outside the company.

Because potential investors usually always want to know that they have invested in a fast-growing business.

Journals Help You in Projecting Income for Your Business Plan!

Having a business plan is the same as having a financial plan. To facilitate financial calculations in planning. You can start using the warehouse stock application.

The journal is equipped with complete financial reports ranging from balance sheets, income statements, cash flows, and so on. With complete financial reports, you can have a more precise and accurate financial planning analysis in a business plan.

Through the journal’s expense recording and asset management features. You can also find out how much the company’s expenses and assets have to be developed in the future. Also, take advantage of inventory management software to help manage your inventory.

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Tips for Building a Solid Team for Business Development

January 23, 2005July 27, 2022 Rihanna

Team building is a group of people who work together for a common goal. In a team, everyone has their task where these tasks are interrelated to achieve a goal. In running a business, the team is one of the important foundations that you must manage well. A team has an important role in business development.

Where, if the team you have is less than optimal and cannot work together, then business development will experience obstacles and obstacles. Meanwhile, if your team is solid and able to work well together, the business will have a great opportunity to continue to grow and survive in the face of business competition.

Below, you can follow some tips on building a good and solid team for business development.

Choose Qualified Members

Not only must the product be of good quality, but the team members must also have good quality.

Start selecting quality team members such as a team leader who has a good leadership spirit, and a management team with a broad business view, and creative ideas.

An implementation team that has the expertise and knowledge of the business, or a marketing team that can promote the business with the right strategy. That way, all the teams that you form can support each other and work together to achieve a business goal.

Set Common Goals

Before starting work, all team members need to know what goals they want to achieve.

Richard Spoon in his book entitled Team Renaissance: The Art, Science, and Politics of Great Teams explain that without a clear direction and measure of success for a team in achieving its goals, it is impossible to assemble a team to work on it.

By setting goals, all team members can be more responsible and can work together to achieve a common goal. This method can also motivate team members to coordinate with each other and carry out their respective roles.

Define Each Role

After knowing the goals to be achieved, the next step is to determine the role of each team member. As a business owner, you must know the skills and mindset of each team member.

That way, you can more easily determine the roles of all team members that you have. For example, when you want to make a promotion in digital media.

Then you need a marketing team that has many connections in digital media and understands what materials are suitable for use in the promotional media.

Work Efficiently

When all team members know their respective roles to achieve a common goal, the next step is to do the job in the best possible way.

At this stage, try to see the workflow, the resources you have, and what the team needs to execute their respective jobs. For example, the marketing team needs a budget to promote the business to TV media. Your job here is to support all the needs of the team to achieve a common goal.

Create Togetherness & Trust

These two things are the main keys to building a solid team in achieving common goals. To create both of these, try to share with your teammates in good times and bad.

To create mutual trust and togetherness, you can encourage team members to care for each other and work together towards a common goal. You can also invite the team to go out of the office together just to watch or eat together. This can make the team closer and also solid at work.

Those are the five tips you can follow to build a solid team in a business. With a solid team, business development can grow easily.

Because the team is one of the foundations that can drive the progress and development of a business. After strengthening team members, you must also strengthen the financial position of the business.

With stable and strong finances, businesses can more easily develop and survive many business competitions. To see the financial position of a business, you can start making financial reports.

With the right financial reports, you can easily see the company’s financial condition so that it can help you grow your business. Journals are online accounting software that can assist in making company financial reports easily, quickly, and safely.

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