Financial Projections for Business Plans, Loan Applications and investors. Predicting the future is difficult, but planning for it can help. Call us today!
Perfect your business plan to ensure 100% financing. Having a great business idea makes a good start, having an effective business plan to bring it to life makes it real. Financial Planning helps your business deal with change, both inside and outside the company. Depending on your company’s situation and objectives, you’ll need to develop several types of projections and budgets:
The financial projections include:
· The Profit and Loss Account
· The Cash Flow Projection
· The Balance Sheet
Profit and Loss Account:
First element of financial projections is Profit and loss and it indicates 2 main items. How much sales/turnover business business will generate month by month and on annual basis basically summing it all. Second item is listing down all the expenses. There is a large list of expenses as opposed to revenue. Hence they need to be categorised into more understandable categories.
Second element of financial projections is Balance sheet which contains three main items.
- Assets- How much the assets are worth which business owns. Such as Furniture, Plant, Equipment, Vehicles, Computers, Bank Balance, Debtors, and Stock etc.
- Liabilities – How much business owes to third parties such as Lenders, Creditors etc.
- Capital- Final portion is how much is invested by the owners. Also it includes how much profit business has generated and retained in the business.
Each of statements is prepared based on the information provided by the business owner and a detailed evaluation of the business itself.
Apart from the numeric side, Financial Plan consists of descriptive part that explains the financial statements and gives a deep insight into the condition of the company.
In order to allow the preparation of Financial Plan you would need to provide our consultant with the information regarding current and projected business income as well as costs divided into 2 groups: Set up cost & Operating cost. If you do not have those information ready, our team would be delighted to assist you in putting them together and incorporating into the Financial Plan.