This post I want to do this also as part of the business plan that you can find in the post: How to make a Business Plan for a new business or company (Start-up) and operations plan
The financial plan is the one that will indicate that you have well-measured costs and sales projections of your company, but in addition, this plan will allow the calculation of important ratios such as the IRR or the expected Ebitda, which are indicators that allow investors to understand the focus of your numbers, and will also allow you to establish possible options for start-up contingencies that often arise in the beginning of the companies. As well as the investment needs that the project will require.
Financial plan, key points:
The financial plan projections you should make is in two areas that allows you to understand the short and medium term, on the one hand in the short term it is important to make a series of financial plan projections to one year with a monthly breakdown and, on the other hand, in the medium term with a series of financial plan projections to three years or even five years, although today for many companies in the technology field a five-year forecast can be difficult to contemplate, depending on the type of activity.
It is essential to establish a cash flow projection along the lines mentioned above, detailing each item in terms of both income and expenses so that the cash flow forecast for each period can be included in the financial plan.
The financial plan should include three main blocks:
– 1.- Estimate of sales with breakdown by products or by services in the financial plan.
– 2.- Investment plan proposed, both at the beginning, as well as possible specific needs (in the event that there may be seasonalities in the income) in the financial plan.
– 3.- Forecast income statements, to be included in the cost area:
– The cost of sales is also important to incorporate it (it will allow you to know well what your real margin is)
– The complete structural costs, from personnel to operating expenses.
– In case you think you have to use some kind of external credit, you must also include the financial costs of the same, but above all also the financial costs of the means of payment or payment systems that you are going to use.
– The amortizations that you have to make of equipment, for example, or of the machinery that you have needed to finance.
– Taxes and everything related to them, etc.