What is financial planning?
The core of any business plan is the
financial section and it basically tells you whether
your business is viable or not.
But the financial plan is what comes
out of the end of the process. You may start off with
financial targets and objectives but it is the actions
and the results of those actions that will determine
what the financial plan looks like.
If, as is often the case, the first
version of your financial plan is less promising than
you hoped it would be, you cannot simply tweak the
sales and cost figures to come up with the result
you want. You need to take another look at your business
plan, change some of the inputs, and see what effect
this has on the financial plan.
The key point is that you are not 'playing
with the numbers' but you are really looking at the
nuts and bolts of your business and working out what
you need to change to deliver the results you want.
And since you can't change the external factors...
If your business plan is to be used
to raise finance, we recommend our Detailed
document. This is a fully researched and
detailed business plan in a format suitable for analysis
by potential investors or lenders.
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