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.…