Financing
Creating a plan for your finances is by far the most complex part of the business planning process; we recommended that you enlist the help of financial experts. Key aspects to consider are:
- projected sales performance (3 or 5 year plan)
- required venture capital
- information about the company’s liquidity
Don’t forget these three important areas:
Capital requirement plan
This is where you specify what financial resources you need at various stages. Not only does this involve the initial cost of starting up a company, but also the ongoing operating expenses. When considering your capital requirement plan, consider the following question: what resources does the company need, in both the start-up and growth phase? If you do not have sufficient personal resources, you should document any loans or external capital.
Finance plan
The finance plan determines the ratio of personal investment to external funds. The capital requirement calculation serves as the basis for this figure. Naturally, a high proportion of personal investment is desirable, however, when starting up a business—particularly a web store—gathering extra funds is compulsory. This can help to cover initial costs such as the acquisition of stock.
Turnover forecast
The turnover forecast should predict your company’s development in the next 3-5 years. Providing a realistic glimpse into the development of your company is just as important for investors as it is for you. Among other things, it is useful to compare your predicted revenue and costs.