Hello… Let’s talk a bit about the importance of having a financial plan. Whether you’re a small business owner, you own a mid-sized company or any sized company for that matter; a financial plan, also known as a budget, can be a powerful tool to help you grow your income.
A financial plan breaks down your future financial goals into smaller achievable goals. In simpler terms, if you would like to have $80k in sales revenue for the year you can use a financial plan to determine how much you would need to make each month in order to achieve that goal. You can then make more informed business decisions on the steps you would take to get to that $80k goal.
I have worked with solopreneurs who did not have an accurate account of their earnings and didn’t know if they had any outstanding receivables. They were not using a financial plan or any form of financial tracking. This essentially caused them to miss out on income. Once we sat together and developed a solid financial plan they were able to determine how much their average monthly income should be, and how much they would like to grow that number by.
A well executed financial plan includes a monthly review process. The best practices for developing and using a financial plan is to first create the plan based on your historical numbers and your goals, then compare your actual results to the financial plan. You want to make sure you are looking forward with realistic revenue goals as well as holding yourself accountable by looking back and comparing the actual numbers to the plan.
I am personally a firm believer in having a plan. A solid financial plan can be the key ingredient to growing your revenue by multiples. And who doesn’t want their revenue to grow????
If you’re interested in developing a financial plan for your business, reach out for a free 30 minute consultation today!!!! It’s never too late to start planning.
Rosemond Financial 