In Part 3 we are going to discuss the financial portion to the business plan process for your Business Plan.
The Financial Plan
Building the financial plan is one of the most arduous and difficult tasks in building your business plan. This article will just be scraping the surface of creating the financial plan document and will provide a brief discussion of what goes into it. There is no quick and easy solution to building a financial plan, however there are some government sources that can help you through this process such as Square One Sask, though they are often limited in their scope, time and abilities. We highly suggest doing additional market research and reaching out to BIG before tackling this yourself. In the future we will be providing further articles on building your financial plan along with detailed templates to assist you throughout the process.
Although this may all sound rather intimidating it can also be the most exciting part of your business plan because this is where you get to test out everything that you are planning. The numbers don’t lie! The financial plan is built by taking into account all the questions, expectations and plans you made in the business plan, except now you are attaching actual values to everything from projected sales to costs and payroll over the next five years. As you walk through creating or revising schedules, budgeting and cash projections you will discover just how profitable your business can be or areas that you may need to re-examine. Just remember that this is a fun part of the discovery period which will be filled with revision after revision, as you polish up your masterpiece for financing.
To start a business, you are going to need some form of financing. The financial plan will lay out your overall budget plus the current and projected financing that will be necessary to open the doors. So where do you begin? The following article walks you through the many sources of financing that are available to you along with resources and links to give you an idea about seed financing all the way to angel investors, Financing Solutions for Startups.
Using this article as a guide, you can examine what financing opportunities exist so you can begin the process of plugging some numbers into your budget and building your financial plan. It will also allow you to take an honest look at what financing you can depend on and how much of a loan you may need. Remember that you will need to get your ducks in a row and make your financial plan solid before you should approach these organizations or work your way to pitching on Dragon’s Den for financing.
Although this plan may seem daunting remember that you do not need to do it alone. Batman needed Alfred to help him out with the things he didn’t know and behind every great success story stands a team behind them. Even if finding and filling out the answers and numbers to these questions may come easy to you, we here at BIG are at the service of our members. So if you have any questions or need any guidance as you create your financial plan, please reach out and we can help direct you to the right resources.
Download our Business Plan Process – Infographic (pdf) and join us for Part 4 as we begin discussing the cashflow portion of your business plan.