When it comes to writing a business plan for a brand new venture then it is impossible to stress how important the figures section is going to be. This is something that is actually quite difficult to do especially if you have never constructed a business plan before and indeed if you look at example or real business plans you would be forgiven for being filled with trepidation. However, creating the figures section and understanding them is easier than you think, but what we will show is that it does require some work on your part.
Getting The Figures Accurate Is Important
First, we need to mention how important it is to get the figures as accurate as possible when writing your business plan. You need to remember that these figures are a projection of what you hope, or even expect, to happen over the next two to three years within your business. This is the section where you will be able to determine if your business is viable from a financial point of view or if you need to make some alterations so that your bank balance is not in the red at the end of the financial year. Just plucking figures for various costs out of thin air will give you a completely false perception of your business. Instead, you need to understand how to analyse your new businesses financials from the beginning.
Look at it from this perspective. This financial budget is like predicting your bank statement for the next couple of years. Now, surely you want to have this image of your bank statement at the end of the year looking nice and healthy and that is only possible through making sure that those figures are indeed accurate. No business can survive if their business plan shows a major loss and that they are bleeding money in various areas, so having accurate figures allow you to cut costs or find alternative measures to make sure that you do at the very least break even over the course of your plan.
Thinking About Your Income
Most people start with their projected income and with this section you need to be honest with yourself and not get carried away. What do you expect to turnover for each month over the next year? Are there any parts of the year where your business industry will suffer an upsurge or a downturn? How quickly do you expect your income to grow on a month-to-month basis? Is there any additional income coming into the business in the way of loans or investment? Plan it across the year and see what your final tally is because this figure is going to be rather important when you look at the costs.
Researching Your Costs
Often it is the outgoings of the business that are the hardest to deal with in the financial figures and one of the main points that you need to think about when engaging business plan writers or writing your business plan yourself is making sure that you research your costs as accurately as possible. Some of the outgoings will be easy enough to calculate as you will have a firm idea of the cost of insurance, payments on vehicles, and even what you plan to take as a salary, so put those in your plan first to make life easier. You should also include rent and other payments linked to property because they should at least be set in stone across the year.
However, there are various other costs that are harder to predict and this is where you need to be sensible and do your homework. How much do you plan spending on stock, if you are to provide products? This is going to vary throughout the year depending on how much you sell, so having a great understanding of these costs is probably the most important part of your entire business plan. Are there delivery costs? If so, get quotes from delivery companies to find out what they would charge so you can budget accordingly. You do not want to set a price to your customers only to discover that delivery fees ruin your profit, do you?
How about your own transport costs? How much will your gas and electricity cost? How about telephone lines or even an Internet bill? What kind of professional fees will you have for your particular industry? How much are they going to cost you? Do you have postage to pay? Basically, you must sit down and think about every single cost associated with your business and project that figure across the entire year. Just leaving one thing out of your research can have a real negative impact on the entire plan and throws your figures out of sync and it is your business that could suffer as a result.
Seeking Help From Professional Business Plan Writers
If you have read everything above and still feel that you are confused, then you are not alone. Engaging a professional business plan writer can really help, as they can advise you on what to do with your figures for your business plan to make sure that they are indeed as accurate as possible. They will look at your business, look at your income, understand your costs, and then create the final set of figures that will show you if you are going to make a profit.
Using a professional company for help with this part of your business plan does make a lot of sense especially if you are nervous about doing it yourself. It is going to be more beneficial for both you and your business to spend some money to get this part as accurate as possible as it gives your business the best possible chance of success. Do it wrong by yourself and you may get to the point where you feel that there is nothing to worry about with regards to money, but that may not be the case. Instead, you could be heading for trouble that could have been so easily avoided if you had only got some help earlier on.
Knowing how to analyse your new businesses financials makes a huge difference and it is in your best interest to learn as much as you can before taking that plunge. It is not as complex as it seems and it is merely a case of being careful with your research and double-checking your figures. Just keep in mind that help is at hand should it be required.