Financial Planning

A financial plan is one aspect of the entire business plan that centres on nothing but finances. It is the ultimate guide and the basis for making decisions regarding how best to spend a retailer’s financial resources. An entrepreneur will initially figure out his fixed start-up costs, which covers the mortgage or lease deposit, inventory, insurance, stores fixtures & equipment, office & store-use supplies, professional fees, licenses & permits, utilities installation, and others. It is best to stick to the planned start-up costs to avoid incurring unnecessary and unmanageable expenses.

Financial management

Monthly operating expenses are also identified in the financial plan. In fact, the plan depicts projections of income statement, balance sheet, and cash flow statement for at least the next five years. Every financial plan must contain attainable estimates, especially sales and income. As the business progresses, adjustments may be made based on the actual amounts to make projections for the succeeding periods more realistic. You may enlist a financial advisor to draft a sound financial plan.

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