Your simple financial business plan

Just the words “financial business plan” can send shivers down the spines of many small business owners. In fact, many entrepreneurs get so overwhelmed with the idea of creating a financial plan that they never actually get around to doing it.  So I’m taking the mystery out of the whole process.

In fact, creating a financial plan for small businesses is not only a very manageable task but one that you can complete with way less money-related know-how than you may think.

All you need is an easy-to-follow guide...

And that’s exactly what I’m providing!

 I’m also going to break down the components of this simple financial business plan, so as you’re going through the guide, you understand exactly what I’m talking about.  In case you don’t know this already, I am a strong believer in owning your financial future -- and the best way to do that is to start with a big picture view of where you want to go with your business and then dive down into the nitty gritty.  So with this One Page Plan that’s where we start. 

 H1: What is a financial business plan?

A financial plan is a strategic approach to finances that marks out a road-map to follow into the future.

Thanks to Investopedia for this definition

Simply put, a financial business plan is a way to think about your money-related goals for your small business and break down how you can meet those goals in the year ahead.

 H1: What goes into a financial plan for small businesses?

H2: Your priorities.

Would we all love to pay ourselves more AND improve our profits AND eliminate debt AND increase sales AND grow emergency cash reserves AND... Well, you get it.

Of course!

And you can do all of those things with your small business over time, but when you set out to create your financial business plan for the next year, it’s best to focus on a few top priorities.

I recommend zeroing in on three of the following financial goals:

  • Improve Profit

  • Increase Owners Pay

  • Grow emergency cash reserves

  • Reduce/Eliminate debt

  • Secure or build growth capital

  • Improve company valuation

  • Increase Sales (Top line Revenue)

H2: Your high-level targets.

Once you know your priorities, it’s time to answer some more specific questions:

  • How much do you want to pay yourself this year?

  • How much will it cost to run your business?  

  • How much do you need to cover loan payments & debt? 

  • What is your target for cash profit after paying all bills and debts?

  • How much will you need to pay taxes?

Of course, once you’ve outlined the 5 cash needs listed above, you will also need to come up with your annual and monthly revenue goals to cover them! 

H2: Setting your monthly revenue goals.

Next, you’ll break down how to reach those monthly revenue goals by looking at your offers, services, and/or products and how those all add up to your bigger goals. 

This is will essentially take into account three things: 

  1. What you’re offering (aka your product or service)

  2. How many of each product or service you need to sell each month (aka volume)

  3. And how much you’re charging for it (aka price)

H2: Crafting your financial business plan to manage costs to meet your profit & overall financial goals

Once you’ve considered your priorities, determined your high-level targets, and broken down achieving your monthly revenue goals, you’re really ready to craft your actionable financial plan for your small business. 

This plan will account for:

  • The cost of your goods or services

  • Your operating expenses (payroll, professional fees, rent, marketing, admin costs, etc.)

  • Taxes

  • Monthly debt payments

Now, if you’re reading through all of this and thinking “simple” is not exactly the word you’d use to describe formulating this financial business plan, don’t stress!

I’ve still got you covered.

H1: How can you get even more FREE support — plus a ready-to-use template — to create your own financial business plan?

Inside The Money Room: The place for companies that are too big to ignore their finances and too small to hire a CFO.

Also, did I mention it’s completely FREE?

Inside The Money Room, you’ll get a template to craft your financial plan PLUS videos and workbooks that go a step deeper than our blog posts -- practical tools you can use to manage finances and increase profit.

What are you waiting for?  

Check out the Money Room here. 

 


Christine Rico