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Financial Planning

When you carry out your financial planning, it is important to keep your personal finances and assets clearly separate from your business. It is also important to have a contingency plan in case income from your business fails to cover the business costs and/or salary costs.

A key activity before starting up in business is to identify all the items that will need to be paid for along with detailed and realistic estimates of how much these will cost.

You will need to include both:

  • direct costs – the costs of materials, labour and equipment.
  • indirect costs – the overheads associated with running a business – rent & rates, advertising, accountancy, etc.

You all also need to produce an estimate of the projected sales income from your business. Please go to the forecasting and planning your sales pages for help with this activity.

You may care to use the tools available on this website:- http://www.bplans.co.uk/calculators/

Once you have a detailed cost of starting and running your new business, you can then determine how these costs will be financed. Please visit the Tools for Managing Your Finances page for more information about financial planning tools such as Cashflow, Profit and Loss Accounts and Balance Sheets. This section also provides information about sources of finance.

All this financial information will make up parts of your business plan. See the business plan pages for help with this.

Please also go to www.GOV.UK for more information, tools and case studies or https://www.gov.uk/business-finance-explained.

Click the link below to download the ICAEW Guide to Business Finance – Start up to Growth

icaew-finance-guide

The ICAEW also publishes a number of downloadable basic business guides – please click on the links below to see them:-

Click the following link for more in depth downloadable guides  http://www.businessadviceservice.com/guides/