How to start your Business Financial plan

here at comm Bank we want your business to be successful to be something you’re proud of no one wants any small business to fail but sometimes they do and often it’s thanks to insufficient planning and funding this is why creating a viable and comprehensive financial plan is essential

for you and your business here are five easy steps to get you started with your financial plan tip 1 calculate your business setup costs these include accounting fees registrations and licenses equipment and fit-out and initial working capital it’s important you compare these overall costs so

you can work out how much money you’ll need to borrow to start your business tip 2 forecast your sales and expenses to do this compare potential sales revenue to costs of goods sold and fixed costs of doing business also calculate likely margins and put

your pricing model to the test forecast for the next 12 months to give you the confidence that your finances will be working in your favor tip 3 forecast your cash flow as this is a vital component of any financial plan new businesses often need cash to build the capacity necessary to service customers and customers could be slow to pay this could result in a cash flow gap and leave

you vulnerable if you’re not prepared tip 4 forecast your balance sheets this should be a snapshot of what your business will look like after 12 months place this on the purchases anticipated in your setup costs and the results of your profit and loss forecast tip 5 calculate your break-even point this is simply the point at which your revenue exactly covers your expenses so it’s important you work out how many sales you need to make to break-even and there you have it a business financial plan get started on yours today