What is a Business Plan?
background of the business, introduction of the business idea and why do you want to do business;
a description of the products you want to sell or services you want to offer;
the customers you wish to sell your products or provide your service to;
how you will advertise your business to attract customers; and
your financing budget to get your business started.
Why Should I Prepare a Business Plan?
Maintain focus in achieving your business goals such as sales target, keeping track of expenses and payments etc;
Provide a guide for you and your staff in growing the business; and
Obtaining funds from Banks or other financing organisations.
Business Plan Template
Click HERE for Business Plan Template
Cash Flow & Forecasted Cash Flow
What is a Cash Flow Statement?
Why Should I Prepare a Cash Flow Statement?
tells you how much cash you have;
used for budgeting and forecasting purposes. For example, you will know how much cash you have to meet commitments such has payments to creditors, loan repayments, wages, taxes etc;
helps in investment or capital decisions; such as buying a vehicle for your business;
requirement for obtaining a loan from banks and financial institutions.
How Often is the Cash Flow Statement Prepared?
This can be prepared on a weekly, monthly or annual basis. Preparing cash flow statement on a monthly basis is most common interval.
How Do I Complete My Cash Flow Forecast?
This final section is the difference between your total revenue and your total expenses.
e.g. “total cash income – total cash expenses = Net cash flow”