Before starting your business, you must go through the essential step of writing a business plan. The business plan makes it possible to fix your project, but also to develop the financial strategy from a brand strategist. The financial file of the business plan helps the entrepreneur to check the profitability of his project.
Above all, in a business plan, the financial plan makes it possible to convince your potential investors, or the bank, of the consistency and financial viability of your long-term project. Thus, the financial plan should not be neglected: the financing of your project may depend on it. Do you want to know how to write a financial business plan? We clarify the situation for you.
Why write a financial business plan?
The financial part of the business plan allows you to develop the general financial strategy with help of a brand consultant for your future business.
This part allows you to take stock of several financial issues of your business. In the financial business plan, you will have to mention, among other things:
Financing your business: what method of financing will you opt for? Funding by partners? By a bank loan? From investors? Take stock of the method of financing your future business.
Investments: identify all the expenses necessary for your business.
Forecast turnover: this is the estimate of turnover after an accounting year, i.e., all sales forecast in 12 months.
Your company’s break-even point: the amount of revenue your company must make to be profitable.
Attention: if you decide to make a free business plan, you must be particularly vigilant when carrying out the financial business plan. If you have any doubts about your calculations, it is better to seek the advice of a professional.
It appears on your roadmap when you launch your project, but the usefulness of the financial business plan does not stop there. It will help convince your potential investors or the bank to grant you a professional loan. Do not neglect the drafting of the financial business plan. You can also turn to trade advertising to get the job done.
Which tables in a financial business plan?
The financial business plan consists of several tables. They will allow you to define your project financially. It is also necessary to integrate calculations into the financial business plan. Among the essential tables are:
- The provisional balance sheets.
- The financing plans.
- The forecast income statement.
- The cash forecast.
Please note: there is no universal financial plan model for all companies. The financial business plan depends on your project, your resources, and your long-term ambitions.
The provisional balance sheet
It is a forecast of your company’s assets on the closing date of an accounting year. It includes the assets (items with positive value) and the liabilities (items with negative value) of your business.
The forecast balance sheet is made up of two columns. One represents the assets, the other the liabilities.
In the asset category, you will find:
Fixed assets: assets used for at least 12 months by the company. These are tangible fixed assets, intangible fixed assets, and financial fixed assets.
Customer receivables: all invoices due, but not yet paid by your customers.
In the category of liabilities, you must provide:
- Equity: the sum of the company’s share capital.
- Tax debts: VAT, corporation tax.
- Supplier debts: debts issued by your suppliers, but not paid.
- Financial debts: debts due to the financing of your project (bank loans, current account contribution, etc.).
The financing plan
The financing plan is essential to the launch of your project. It allows you to determine if you have the necessary capital to launch it. This document is important for your potential investors. So, make sure it is consistent and believable.
In the financing plan, it is necessary to balance:
- All your company’s financial needs.
- The different resources provided.
Tip: do not hesitate to estimate the price of creating your company with Legal start using the quote tool below:
Be careful not to minimize costs or inflate funding. Above all, your financing plan must be balanced within the financial: the sum of resources must be at least equal to all the company’s financial needs.
Tip: to find out more, go to our practical sheet on the financing plan.
The forecast income statement
The forecast income statement is an important table of the business plan. It balances, over the same period, the forecast turnover, and the forecast expenses. It makes it possible to note the net result of the planned accounting years.
In this table, all expected loads must be entered. These are, for example, purchases of goods, supplies, transport costs, rents, salaries, taxes, etc.
The cash flow forecast
The cash flow forecast is the table of the business plan which estimates all the financial flows: it considers all the sums that your company will receive (in other words, receipts) and all the sums spent (disbursements).
The difference between receipts and disbursements constitutes the cash balance.
This table makes it possible to plan the control of the budget monthly and to anticipate periods of low or high activity or the development of new projects.