The Financial Planning pages provide information about some of the key tools that you will need to help you plan and manage your business finances.
These pages provide some high level information about budgeting, cashflow forecasting, profit and loss accounts and the balance sheet along with links to the national information website www.gov.uk where you can go to read more detailed information about these tools and more.
If you need one to one help with Financial Planning, you can call us to request a contact with one of our Access to Finance team, or see the Local Finance Support Scheme pages. ACCA (the Association of Chartered Certified Accountants) also offers some useful business finance guides on its website, as does the ICAEW (download their guide – see link at bottom of this page).
You must be realistic and practical when setting growth objectives. Will you have enough money to finance the development without impacting on the funding for your core activities?
Sound financial planning is the foundation of any growth strategy. You will need to establish:
- how much investment is required to fund the venture
- when it will be needed
- when it will be available
- how soon you will be in a position to repay the capital
A detailed cashflow forecast is essential, not least because outgoings are almost certainly going to rise sooner and faster than revenues. Enough money must be in the pot to keep the core business running. It’s a good idea to build in some surplus too, as most projects always take longer to bear fruit than originally predicted. Detailed forecasts regarding sales, working capital and sources of seed funding and even second round funding will need to be drawn up.
See the Raising Finance pages for information about how to fund growth plans.
Click here to download the ICAEW Guide to Business Finance Business finance guide_Update Aug 2015