Developing a business financial plan .... I bet that's something you didn't think you'd have to do when starting a small business from home.
The truth is ... every business, however small, must have one .... that is, if you're serious about your business and serious about making money.
Having a financial plan allows you to take charge of your business.
But don't worry ... you don't have to do this yourself if you don't want to.
You can hire your accountant to do it on your behalf.
But you do need to understand what a business financial plan is all about and you'll have to make a few decisions about the kind of business you want so that your accountant can put the document together.
Don't be fooled though by the fact that most business plans place the financial information at the end of the overall document - that doesn't mean it's less important.
The financial data forms an integral part of creating a business plan and without it, it wouldn't be worth the paper it is written on.
You can only determine your
Calculating how much money you need to
Separate your set-up costs from your operating costs.
Calculate your operating costs for the first 6 months.
Your operating costs are those that you'll have on a regular basis. These will include postage, internet costs, phone calls etc.
Having that extra money stashed away to cover your operating costs for the first six months will reduce the stress as you won't have to worry about paying your bills.
Let me set your mind at ease. This whole section is dedicated to developing a financial plan. This article is only the beginning.
The following articles will give you all the information you need on managing the financial aspect of your business.