Business Planning

Finance Plan

The finance plan is probably the only part of a small business plan that closely resembles that of a BIG business plan. After all, finances are finances. And a "proper" BIG business style plan – a pitch for funding – is really part of this particular SUB-plan of your REAL business plan... otherwise it's the sausage that thinks it's the butcher!

Your Finance Plan needs to address two fundamental functions in order to serve you properly on your way to your destination:

• It should identify a clear path to follow in terms of quantifying results expected at each stage of the journey.
   
• It should identify important landmarks along the way.
   
• It should monitor your progress and alert you when you’re off course. If possible, it should be useful in identifying how to get back on course.
   
• It should compare your forecasts, budgets, projections to your actual achievements to facilitate constant tracking of your course between your starting point and your destination.

If you already have an established business and don’t yet have these components working for you, set your starting point at where you are right now. An effective SWOT Analysis will help you do this.

Important

Unless you’re trained – and skilled – in financial planning, record keeping and analysis, it will pay you to use external sources of leverage:

• A skilled bookkeeper
   
• A qualified, entrepreneurially-minded accountant (you can’t afford one with production mentality!)

The right people will not only save you more than they cost you, they’ll earn you much more as well. And they’ll certainly free you up to focus on the things in your business that you’re best qualified to do. Or to enjoy more free time.

It’s a fallacy to think that you can squander your most limited and precious resource – time – in order to save a little money. Especially when your ineptitude means you create such a disastrous mess that you have to employ them anyway, just to clean it up! (And it always takes much longer and costs you much more that way.)

We recommend that you keep accurate records, regularly, and that you check your course frequently. A few degrees off course at the beginning of the journey can translate into huge distances off course – and no chance of correcting in time to reach your chosen destination.

Return to Your Business Vehicle

Business Mission/Business Vision • Key Competitive Edge
Basis for Business/Basis for Growth
• Customer Relationships
Finance • Internal Relationships • External Relationships

   
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