Business Financial Planning is an essential part of business planning. It is an on-going, dynamic process which is something a business should do continuously.

Of all the plans you have to make for a business the Finance Plan is the most important. On its soundness will depend to a large extent the success or failure of the business. And that is the point. Finance Plans do not have to be lengthy or detailed; they have to be sound.

Many business men and women keep their Finance Plan in their head. It works for some. It is an extremely dangerous thing to do. We are not immortal and, as many executors know, sorting out the finances of someone who has kept them to himself and not written them down can be a long-drawn-out nightmare. It can also cost a lot of money.

Business Financial Planning is not something you do only when you start a business. It is a dynamic, on-going process and it needs reviewing frequently.

How does a Finance Plan differ from the Business Plan?
The Business Plan will incorporate the Finance Plan essentials but the main part of a Business Plan is setting, and steering, a direct course for, the objectives of the business. The Finance Plan supports the Business Plan and makes it possible.

Do you need both a Business Plan and a Finance Plan?
Yes, you do. The Finance Plan will tell you how you are going to find the capital and working capital you need to sustain and develop the business. It will show how you are going to nurture the funds coming in, where you are going to borrow, and against what collateral, the new funds needed and how you are going to deploy the surplus. Decisions will be made on the basis of the Business Plan. But the Business Plan will be tempered by the Finance Plan.

There are many models for a Finance Plan. One of them will suit your business. But each business is different and selecting the right model needs careful thought.

If you need a Finance Plan, talk to me. I’ll tell you how to find out which model suits you.