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.
Click the link below to download the ICAEW Guide to Business Finance – Start up to Growth
The ICAEW also publishes a number of downloadable basic business guides – please click on the links below to see them:-
- Business finance guide
- Small business credit and charge cards guide
- Top five cyber risks
- Asset Finance
- First Steps in Business
- Why write a business plan?
- Start-up Finance
- Starting up your business: Practical issues
- Sole trader or limited company?
- The limited company and tax
- Managing cashflow
- Basics of VAT
- Good accounting records
- The sole trader and tax
- Question about business tax
- Financing a growing business
- Looking for business premises?
- How do I monitor the progress of my business?
- Export finance
Click the following link for more in depth downloadable guides http://www.businessadviceservice.com/guides/