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How to Prepare a Financial Plan for Startup Business (w/ example)

Financial Statements Template

Free Financial Statements Template

Ajay Jagtap

  • December 7, 2023

13 Min Read

financial plan for startup business

If someone were to ask you about your business financials, could you give them a detailed answer?

Let’s say they ask—how do you allocate your operating expenses? What is your cash flow situation like? What is your exit strategy? And a series of similar other questions.

Instead of mumbling what to answer or shooting in the dark, as a founder, you must prepare yourself to answer this line of questioning—and creating a financial plan for your startup is the best way to do it.

A business plan’s financial plan section is no easy task—we get that.

But, you know what—this in-depth guide and financial plan example can make forecasting as simple as counting on your fingertips.

Ready to get started? Let’s begin by discussing startup financial planning.

What is Startup Financial Planning?

Startup financial planning, in simple terms, is a process of planning the financial aspects of a new business. It’s an integral part of a business plan and comprises its three major components: balance sheet, income statement, and cash-flow statement.

Apart from these statements, your financial section may also include revenue and sales forecasts, assets & liabilities, break-even analysis, and more. Your first financial plan may not be very detailed, but you can tweak and update it as your company grows.

Key Takeaways

  • Realistic assumptions, thorough research, and a clear understanding of the market are the key to reliable financial projections.
  • Cash flow projection, balance sheet, and income statement are three major components of a financial plan.
  • Preparing a financial plan is easier and faster when you use a financial planning tool.
  • Exploring “what-if” scenarios is an ideal method to understand the potential risks and opportunities involved in the business operations.

Why is Financial Planning Important to Your Startup?

Poor financial planning is one of the biggest reasons why most startups fail. In fact, a recent CNBC study reported that running out of cash was the reason behind 44% of startup failures in 2022.

A well-prepared financial plan provides a clear financial direction for your business, helps you set realistic financial objectives, create accurate forecasts, and shows your business is committed to its financial objectives.

It’s a key element of your business plan for winning potential investors. In fact, YC considered recent financial statements and projections to be critical elements of their Series A due diligence checklist .

Your financial plan demonstrates how your business manages expenses and generates revenue and helps them understand where your business stands today and in 5 years.

Makes sense why financial planning is important to your startup, doesn’t it? Let’s cut to the chase and discuss the key components of a startup’s financial plan.

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startup business financial plan

Key Components of a Startup Financial Plan

Whether creating a financial plan from scratch for a business venture or just modifying it for an existing one, here are the key components to consider including in your startup’s financial planning process.

Income Statement

An Income statement , also known as a profit-and-loss statement(P&L), shows your company’s income and expenditures. It also demonstrates how your business experienced any profit or loss over a given time.

Consider it as a snapshot of your business that shows the feasibility of your business idea. An income statement can be generated considering three scenarios: worst, expected, and best.

Your income or P&L statement must list the following:

  • Cost of goods or cost of sale
  • Gross margin
  • Operating expenses
  • Revenue streams
  • EBITDA (Earnings before interest, tax, depreciation , & amortization )

Established businesses can prepare annual income statements, whereas new businesses and startups should consider preparing monthly statements.

Cash flow Statement

A cash flow statement is one of the most critical financial statements for startups that summarize your business’s cash in-and-out flows over a given time.

This section provides details on the cash position of your business and its ability to meet monetary commitments on a timely basis.

Your cash flow projection consists of the following three components:

✅ Cash revenue projection: Here, you must enter each month’s estimated or expected sales figures.

✅ Cash disbursements: List expenditures that you expect to pay in cash for each month over one year.

✅ Cash flow reconciliation: Cash flow reconciliation is a process used to ensure the accuracy of cash flow projections. The adjusted amount is the cash flow balance carried over to the next month.

Furthermore, a company’s cash flow projections can be crucial while assessing liquidity, its ability to generate positive cash flows and pay off debts, and invest in growth initiatives.

Balance Sheet

Your balance sheet is a financial statement that reports your company’s assets, liabilities, and shareholder equity at a given time.

Consider it as a snapshot of what your business owns and owes, as well as the amount invested by the shareholders.

This statement consists of three parts: assets , liabilities, and the balance calculated by the difference between the first two. The final numbers on this sheet reflect the business owner’s equity or value.

Balance sheets follow the following accounting equation with assets on one side and liabilities plus Owner’s equity on the other:

Here is what’s the core purpose of having a balance-sheet:

  • Indicates the capital need of the business
  • It helps to identify the allocation of resources
  • It calculates the requirement of seed money you put up, and
  • How much finance is required?

Since it helps investors understand the condition of your business on a given date, it’s a financial statement you can’t miss out on.

Break-even Analysis

Break-even analysis is a startup or small business accounting practice used to determine when a company, product, or service will become profitable.

For instance, a break-even analysis could help you understand how many candles you need to sell to cover your warehousing and manufacturing costs and start making profits.

Remember, anything you sell beyond the break-even point will result in profit.

You must be aware of your fixed and variable costs to accurately determine your startup’s break-even point.

  • Fixed costs: fixed expenses that stay the same no matter what.
  • Variable costs: expenses that fluctuate over time depending on production or sales.

A break-even point helps you smartly price your goods or services, cover fixed costs, catch missing expenses, and set sales targets while helping investors gain confidence in your business. No brainer—why it’s a key component of your startup’s financial plan.

Having covered all the key elements of a financial plan, let’s discuss how you can create a financial plan for your startup.

How to Create a Financial Section of a Startup Business Plan?

1. determine your financial needs.

You can’t start financial planning without understanding your financial requirements, can you? Get your notepad or simply open a notion doc; it’s time for some critical thinking.

Start by assessing your current situation by—calculating your income, expenses , assets, and liabilities, what the startup costs are, how much you have against them, and how much financing you need.

Assessing your current financial situation and health will help determine how much capital you need for your startup and help plan fundraising activities and outreach.

Furthermore, determining financial needs helps prioritize operational activities and expenses, effectively allocate resources, and increase the viability and sustainability of a business in the long run.

Having learned to determine financial needs, let’s head straight to setting financial goals.

2. Define Your Financial Goals

Setting realistic financial goals is fundamental in preparing an effective financial plan. So, it would help to outline your long-term strategies and goals at the beginning of your financial planning process.

Let’s understand it this way—if you are a SaaS startup pursuing VC financing rounds, you may ask investors about what matters to them the most and prepare your financial plan accordingly.

However, a coffee shop owner seeking a business loan may need to create a plan that appeals to banks, not investors. At the same time, an internal financial plan designed to offer financial direction and resource allocation may not be the same as previous examples, seeing its different use case.

Feeling overwhelmed? Just define your financial goals—you’ll be fine.

You can start by identifying your business KPIs (key performance indicators); it would be an ideal starting point.

3. Choose the Right Financial Planning Tool

Let’s face it—preparing a financial plan using Excel is no joke. One would only use this method if they had all the time in the world.

Having the right financial planning software will simplify and speed up the process and guide you through creating accurate financial forecasts.

Many financial planning software and tools claim to be the ideal solution, but it’s you who will identify and choose a tool that is best for your financial planning needs.

startup business financial plan

Create a Financial Plan with Upmetrics in no time

Enter your Financial Assumptions, and we’ll calculate your monthly/quarterly and yearly financial projections.

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4. Make Assumptions Before Projecting Financials

Once you have a financial planning tool, you can move forward to the next step— making financial assumptions for your plan based on your company’s current performance and past financial records.

You’re just making predictions about your company’s financial future, so there’s no need to overthink or complicate the process.

You can gather your business’ historical financial data, market trends, and other relevant documents to help create a base for accurate financial projections.

After you have developed rough assumptions and a good understanding of your business finances, you can move forward to the next step—projecting financials.

5. Prepare Realistic Financial Projections

It’s a no-brainer—financial forecasting is the most critical yet challenging aspect of financial planning. However, it’s effortless if you’re using a financial planning software.

Upmetrics’ forecasting feature can help you project financials for up to 7 years. However, new startups usually consider planning for the next five years. Although it can be contradictory considering your financial goals and investor specifications.

Following are the two key aspects of your financial projections:

Revenue Projections

In simple terms, revenue projections help investors determine how much revenue your business plans to generate in years to come.

It generally involves conducting market research, determining pricing strategy , and cash flow analysis—which we’ve already discussed in the previous steps.

The following are the key components of an accurate revenue projection report:

  • Market analysis
  • Sales forecast
  • Pricing strategy
  • Growth assumptions
  • Seasonal variations

This is a critical section for pre-revenue startups, so ensure your projections accurately align with your startup’s financial model and revenue goals.

Expense Projections

Both revenue and expense projections are correlated to each other. As revenue forecasts projected revenue assumptions, expense projections will estimate expenses associated with operating your business.

Accurately estimating your expenses will help in effective cash flow analysis and proper resource allocation.

These are the most common costs to consider while projecting expenses:

  • Fixed costs
  • Variable costs
  • Employee costs or payroll expenses
  • Operational expenses
  • Marketing and advertising expenses
  • Emergency fund

Remember, realistic assumptions, thorough research, and a clear understanding of your market are the key to reliable financial projections.

6. Consider “What if” Scenarios

After you project your financials, it’s time to test your assumptions with what-if analysis, also known as sensitivity analysis.

Using what-if analysis with different scenarios while projecting your financials will increase transparency and help investors better understand your startup’s future with its best, expected, and worst-case scenarios.

Exploring “what-if” scenarios is the best way to better understand the potential risks and opportunities involved in business operations. This proactive exercise will help you make strategic decisions and necessary adjustments to your financial plan.

7. Build a Visual Report

If you’ve closely followed the steps leading to this, you know how to research for financial projections, create a financial plan, and test assumptions using “what-if” scenarios.

Now, we’ll prepare visual reports to present your numbers in a visually appealing and easily digestible format.

Don’t worry—it’s no extra effort. You’ve already made a visual report while creating your financial plan and forecasting financials.

Check the dashboard to see the visual presentation of your projections and reports, and use the necessary financial data, diagrams, and graphs in the final draft of your financial plan.

Here’s what Upmetrics’ dashboard looks like:

Upmetrics financial projections visual report

8. Monitor and Adjust Your Financial Plan

Even though it’s not a primary step in creating a good financial plan, it’s quite essential to regularly monitor and adjust your financial plan to ensure the assumptions you made are still relevant, and you are heading in the right direction.

There are multiple ways to monitor your financial plan.

For instance, you can compare your assumptions with actual results to ensure accurate projections based on metrics like new customers acquired and acquisition costs, net profit, and gross margin.

Consider making necessary adjustments if your assumptions are not resonating with actual numbers.

Also, keep an eye on whether the changes you’ve identified are having the desired effect by monitoring their implementation.

And that was the last step in our financial planning guide. However, it’s not the end. Have a look at this financial plan example.

Startup Financial Plan Example

Having learned about financial planning, let’s quickly discuss a coffee shop startup financial plan example prepared using Upmetrics.

Important Assumptions

  • The sales forecast is conservative and assumes a 5% increase in Year 2 and a 10% in Year 3.
  • The analysis accounts for economic seasonality – wherein some months revenues peak (such as holidays ) and wanes in slower months.
  • The analysis assumes the owner will not withdraw any salary till the 3rd year; at any time it is assumed that the owner’s withdrawal is available at his discretion.
  • Sales are cash basis – nonaccrual accounting
  • Moderate ramp- up in staff over the 5 years forecast
  • Barista salary in the forecast is $36,000 in 2023.
  • In general, most cafes have an 85% gross profit margin
  • In general, most cafes have a 3% net profit margin

Projected Balance Sheet

Projected Balance Sheet

Projected Cash-Flow Statement

Cash-Flow Statement

Projected Profit & Loss Statement

Profit & Loss Statement

Break Even Analysis

Break Even Analysis

Start Preparing Your Financial Plan

We covered everything about financial planning in this guide, didn’t we? Although it doesn’t fulfill our objective to the fullest—we want you to finish your financial plan.

Sounds like a tough job? We have an easy way out for you—Upmetrics’ financial forecasting feature. Simply enter your financial assumptions, and let it do the rest.

So what are you waiting for? Try Upmetrics and create your financial plan in a snap.

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

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Frequently Asked Questions

How often should i update my financial projections.

Well, there is no particular rule about it. However, reviewing and updating your financial plan once a year is considered an ideal practice as it ensures that the financial aspirations you started and the projections you made are still relevant.

How do I estimate startup costs accurately?

You can estimate your startup costs by identifying and factoring various one-time, recurring, and hidden expenses. However, using a financial forecasting tool like Upmetrics will ensure accurate costs while speeding up the process.

What financial ratios should startups pay attention to?

Here’s a list of financial ratios every startup owner should keep an eye on:

  • Net profit margin
  • Current ratio
  • Quick ratio
  • Working capital
  • Return on equity
  • Debt-to-equity ratio
  • Return on assets
  • Debt-to-asset ratio

What are the 3 different scenarios in scenario analysis?

As discussed earlier, Scenario analysis is the process of ascertaining and analyzing possible events that can occur in the future. Startups or businesses often consider analyzing these three scenarios:

  • base-case (expected) scenario
  • Worst-case scenario
  • best case scenario.

About the Author

startup business financial plan

Ajay is a SaaS writer and personal finance blogger who has been active in the space for over three years, writing about startups, business planning, budgeting, credit cards, and other topics related to personal finance. If not writing, he’s probably having a power nap. Read more

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Creating a Financial Plan for Startups: The Ultimate Guide

Brittany Wren

The top reason startups fail is because they run out of money, according to a 2020 survey by Wilbur Labs . And one of the main reasons they run out of money is because their financial planning consists of rosy projections of the best-case scenario, based on bad data — or no financial planning at all.

Creating a financial plan is essential to a startup’s success. For one thing, most investors need to see a startup’s financial plan before they even consider funding it. More importantly, a financial plan allows you to quantify your business assumptions, define specific benchmarks, plan for worst- and best-case scenarios, and measure your company’s success (even before you start making a profit).

The bottom line is: if you have expenses, you should have a financial plan. But you don’t need an accounting degree (or even an accountant) to get started.

What is startup financial planning?

Your startup’s financial plan is the roadmap that lays out the path for your company’s future financial success. In it, you make predictions and plans based on historical performance and industry research. Start with your company’s current financial situation, add in future goals and predictions, and strategize how to get there. Financial plans include details about:

  • Fixed/variable expenses
  • Gross/operating margins
  • Profit potential and durability
  • Break-even point
  • Cash balance
  • Cash flow changes

Don’t have all that information close at hand? That’s okay. The first financial plan you create may not be very detailed. You’ll keep building and tweaking it as your company iterates.

A financial plan is NOT the same as a business plan

A business plan is written in paragraphs. A financial plan is (traditionally) a giant Excel spreadsheet. It’s synonymous with Pro Forma financial, which is the finance industry term for three detailed reports: cash flow statement, profit and loss (P&L) , and balance sheet . Financial planning is part of the due diligence process , which you’ll need to provide to investors prior to signing a Series A term sheet.

Financial planning is made up of several smaller activities:

These activities include:

  • Creating a hiring plan
  • Making projections about sales, expenses, cash flow, income statement, and balance sheet
  • Analyzing projections
  • Producing profit and loss statements
  • Financial projections and modeling
  • Analyzing internal controls
  • Creating annual growth strategies

Before you start: collect data and tools

You can’t create a financial plan in a vacuum. First, you’ll need to assemble some critical things:

startup business financial plan

Before you can accurately create a financial plan, identify and assemble all your existing financial data. What financial accounts (bank accounts, credit cards) are you using for your business income and expenses? Where/how are you doing your bookkeeping (e.g., QuickBooks, Xero, NetSuite), and is that information up to date?

You’ll need to import the above information into your financial plan. Updates can be done manually with a spreadsheet or automatically using software (more on that below). Generally, it’s better if updates can be automated so you know you’re looking at the latest data and can be more nimble with decision-making.

Now you need to decide what tools you’ll use to create a financial plan. Options include a spreadsheet, dedicated software, or outsourcing to a CPA.

If you opt for a spreadsheet, you can download an Excel or Google Sheet template from an online resource, or you can create it yourself. If you create it yourself, a finance analyst, HR manager, or office manager can maintain it, and then later, a CFO can run point on the whole process.

The problem with a spreadsheet is that it’s often too fragile for everyone to use collaboratively — it’s not automatically version controlled, and it’s too manual. That’s why you might choose software like Pry, Finmark, Brixx, or Causal. Obviously, we think Pry is the best choice for financial planning. But whatever you choose, the main reason to use software is it will scale as you grow.

Finally, you can hire a CPA to build a financial plan for you. This option can afford you some peace of mind. However, it costs a lot more than a DIY spreadsheet or software approach. Additionally, you’ll understand your business better if you create your financial plan internally.

Steps to create a financial plan

Startup financial planning can seem daunting at first, especially if you’re an early-stage founder and this is your first time. We’ll break it down below.

1. Visualize the end result

At the beginning of the financial planning process, you should sketch out long-term strategies and goals. If you’re pursuing a financing round, ask your investors about what metrics matter the most to them. That way you can bring those details to the forefront instead of burying them in a series of complex tabs.

A good starting point is to determine your company’s KPIs. What are the things you want to track and forecast? Remember that different metrics are important to different business models . For example, SaaS companies should include metrics like MRR (monthly recurring revenue) , as well as bank balance and budget vs. actuals.

Thinking back to your best lever of growth, what will be your key milestones? This could include acquiring a certain number of customers, raising a round of fundraising, or making an acquisition.

This sounds like, “To reach X, we need to hit A, B, C, and D milestones. Here’s how we think we’ll get from A to B, then B to C, then C to D.” – Underscore VC

startup business financial plan

2. Pick the right template or software

It’s hard to create a generic template for all sorts of businesses, so find a template that matches your business model. Sometimes you can access these templates for free, like the one in this LinkedIn thread . Or you can download a template in exchange for your contact info, like this one for SaaS startups.

Of course, you can also choose software that creates this template for you instead of trying to retrofit some random online spreadsheet template. At Pry, we can customize reports and dashboards to your specific business model for $500 with our custom onboarding.

startup business financial plan

3. Import existing data

Now you’ll need to import your existing information from different financial accounts like QuickBooks or Xero (depending on which you use), bank account(s), and/or credit card(s). This is sometimes referred to as the “ Chart of Accounts .” Your bank data could be a statement, or it could just be today’s balance. Ideally, you should pull as much as possible, so you have the clearest, most detailed picture.

The information you should import can be broken down as follows:

  • Assets (e.g., checking, savings, amounts owed to the company from customers, inventory, prepaid expenses)
  • Liabilities (e.g., line of credit, credit card payable, the amount owed to vendors, payroll taxes payable)
  • Equity (assets minus liabilities)
  • Income (e.g., product sales, interest)
  • Expenses (e.g., cost of goods sold, marketing, travel, rent, office supplies)

If your financial plan is a spreadsheet, you’ll need to manually export your existing data and then import it into your spreadsheet. This process looks slightly different for each different financial account. QuickBooks and Xero both outline how to do this on their websites.

If you’re using a financial planning tool like Pry, you can connect these accounts so they sync automatically via an API integration .

startup business financial plan

4. Project expenses

Once you have an accurate picture of current accounts, you should start projecting future expenses. These can be broken into two broad categories: direct expenses (aka, costs of sales) and indirect expenses (aka, selling, general, and administrative expenses). Direct expenses include any raw materials, production equipment depreciation, hosting fees, etc. Everything else (other than product costs and capital purchases) is considered an indirect expense.

Salaries and benefits (an indirect expense) are usually the biggest expense at this point, so we recommend starting with this one. You should add existing employees and forecast future hires to predict the additional cost of roles and salaries over time. Be sure to include benefits and payroll taxes. Also, don’t project people out by dollars spent on them — do it by name/role/salary, then convert salary into a monthly cost. For example, 4 Software Engineers, $100k each, Start Dates: July 2021, September 2021, November 2021, January 2022 .

Build a headcount plan by role for the pro forma period by month. This approach creates a hiring plan based on revenue timing to properly support the business. It also allows for quick adjustments when modeling revenue changes. – Tiffany Hovland, CPA, Journal of Accountancy

  • Legal and professional services (e.g., the costs of incorporating a new business, like business license fees)
  • IT (e.g., data storage, software, data security)
  • Office rent
  • Office supplies

As you make projections about future expenses, remember to focus on high-level estimates based on industry standards, location, and company size.A lot of things can change, and you shouldn’t waste time perfecting predictions — they may not come true, anyway.

startup business financial plan

5. Project revenue

Now you’ll describe how your company will produce income. If your company is pre-revenue, you can start with industry standards. Realistic revenue projections are important to investors, and they influence all other assumptions about profit and loss (P&L) . If revenue projections are drastically wrong, you may over- or understaff your company or make big purchases you can’t afford.

To make accurate projections, define the revenue levers, drivers, and assumptions. Revenue levers could be products and/or services, software maintenance agreements, or channel partner sales. You also need to identify which activities increase or decrease revenue, as well as pricing and activity assumptions.

One important revenue projection for SaaS businesses is MRR. Here’s an example of this type of revenue projection:

  • Revenue lever: monthly subscription revenue
  • Revenue driver: marketing spend and conversion rates
  • Revenue assumptions: $200 subscription price, 100 initial customers, 25 new signups per month, two churned customers per month

To project MRR using software like Pry, use this formula: MRR = total customers * average subscription price.

startup business financial plan

6. Build a report

After you have collected all your current financial information and built out some projections, it’s time to present it in an easily digestible format to drive decision-making. A dashboard is a visual way to summarize and report on the data. It makes it easy for business owners, board members, and investors to look at and know the status of the company.

Now that the estimates are complete, it is time to transform the work into a collection of facts that potential investors and business owners can use to drive decisions. The initial information and discussions should focus on high-level assumptions and give confidence that the business can scale and grow as the example outlines. – Tiffany Hovland, CPA, Journal of Accountancy

If you’re using Excel for your financial plan, you can build these reports as pivot tables. Or, if you find pivot tables too cumbersome, you can create a dashboard easily using software. Here’s what Pry’s dashboard looks like:

startup business financial plan

7. Test assumptions

The final step of financial planning is often called a what-if analysis or sensitivity analysis. Now that you’ve built some assumptions about the future, try playing with some different ones — some aggressive and some conservative. Change some inputs and review the reports in different scenarios. This will help you see how the assumptions relate and ensure that the end model makes sense.

Another way to test your assumptions is to compare your company’s metrics to those of other companies. Larger companies might check the SEC’s website for public competitors or companies in a similar space with similar net revenue. If you can’t find a good comparison, though, you can check with investors to see which assumptions you should tweak. Then revise accordingly.

We picked a list of IPO comparables—enterprise-class SaaS companies that had gone public. We look at up to three years of their financial data, and based on our growth rate, revenue, and expenses as a percentage of revenue, we compare ourselves against their metrics. These comparables are a way to validate our progress against our three-year plan. – Jason Purcell, CEO of Salsify

Now it’s your turn (we can help)

The bottom line is that if your startup has expenses, you should also have a financial plan. And now that you know how to create one, it’s time to get started.If the prospect of making pivot tables in Excel intimidates you, try creating a financial plan with an out-of-box tool like Pry. It does everything the expensive firms do but without the hefty price tag.

View Pry’s pricing ->

Keep reading...

Revenue forecasting for founders: how to make projections early.

Revenue forecasting is looking at existing data and predicting how much money your company will bring in from sales in future months, quarters, or years. Even early-stage startups need to track these metrics because accurate and realistic revenue forecasts are the only way you can avoid a big cash flow shortage and complete company meltdown.

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Blog Feature Updates

Startup Business Plans 101: Your Path to Success

By Jay Nair , Jul 24, 2023

startup business financial plan

It’s time — you’ve got a promising idea and you’re now prepared to invest the necessary effort to turn it into reality. Startup business plans are vital hack tools that will guide you through your entrepreneurial journey and a business venture with clarity and purpose.

Though vital, business planning doesn’t have to be a chore. Business plans for lean startups and solopreneurs can simply outline the business concept, sales proposition, target customers and sketch out a plan of action to bring the product or service to market. These plans will serve as strategic documents outlining your company’s vision, mission statements, business objectives, target market, financial forecasts and growth strategies.

To simplify the creation of a robust business plan as an entrepreneur, you can harness the power of a business plan maker . This invaluable tool streamlines the process and ensures a polished and well-organized presentation.  Startup business plan templates provide pre-designed frameworks that can be customized to suit your specific industry needs, saving valuable time and effort while preserving the essential structure of a comprehensive business plan.

Ready to begin? Let’s go!

startup business financial plan

Just so you know, some of our business plan templates are free to use and some require a small monthly fee. Sign-up is always free, as is access to Venngage’s online drag-and-drop editor.

Click to jump ahead:

  • Laying the foundation of your startup business plan
  • Business plan executive summary
  • Writing your business description
  • Marketing & sales strategies
  • Startup operational plans
  • Financial plans – forecasting and projections
  • Team and management
  • Appendix and supporting documents

FAQs on startup business plans

  • Use Venngage to create your startup business plan

Preparation and research: 6 steps to laying the foundation of your startup business plan

  • What problem does your product or service solve? 
  • Who are your target customers? 
  • What differentiates your offering from existing solutions in the market? 

This self-reflection will help you establish a clear direction for your startup.

  • Next, conduct market research to gather valuable insights about your target market , including demographics, preferences, and purchasing behavior . This data will enable you to tailor your product or service to meet the specific needs of your customers. Identify trends, industry growth projections, and any potential barriers or challenges you may encounter.
  • Competitive analysis is another critical aspect of preparation and research. Study your competitors to understand their strengths, weaknesses, and strategies. Analyze their pricing, marketing tactics, customer experience, and product/service features. This analysis will allow you to identify gaps in the market and position your startup to offer a unique value proposition .
  • Financial research is equally important during this phase. Calculate the costs associated with starting and operating your business , including overhead expenses, production costs, marketing expenses, and employee salaries. Assess potential revenue streams and estimate your expected sales. This financial analysis will help you determine the feasibility of your business idea and outline a realistic financial plan.
  • Additionally, gather information about legal and regulatory requirements that apply to your industry and location . Understand the necessary permits, licenses, and certifications you need to operate legally. Complying with these regulations from the outset will prevent potential setbacks or legal issues in the future.
  • Finally, organize your findings and insights into a coherent business plan. Create your business plan outline , list your business plan goals, strategies, target market, competitive analysis, marketing plan, financial projections and any other relevant information. This compilation will serve as a roadmap for your startup, guiding your decisions and actions moving forward.

You’ve just encountered a wealth of information and are well on your way to becoming a seasoned business owner! This can sometimes feel overwhelming. But don’t worry, take a moment to breathe deeply and remember how far you’ve come. You’ve got this!

To help you condense and organize your essential points, I have brilliant one-page samples of business plan layouts and templates that will capture everything in a concise format.

startup business financial plan

Knowing when to use a one-page business plan versus a more comprehensive plan depends on various factors. A one-page business plan is ideal for providing a quick overview, saving time, and internal planning. However, it may not suffice for detailed information, complex business models, or meeting external stakeholders’ expectations.

Ultimately, consider the purpose, audience, and complexity of your business when deciding whether to utilize a one-page business plan or opt for a more detailed approach.

Executive Summary: Your Startup’s Elevator Pitch

First impressions are crucial, and a concise yet comprehensive executive summary is your chance to grab potential investors’ attention.

To create a compelling elevator pitch, consider the following key elements:

Problem Statement : Clearly articulate the problem or pain point that your startup addresses. Emphasize the significance of the problem and the potential market size

Solution : Concisely describe your innovative solution or product that solves the identified problem. Highlight its unique features or benefits that differentiate it from existing alternatives.

Target Market : Define your ideal customer segment and outline the market potential. Demonstrate a deep understanding of your target audience’s needs, preferences, and behavior.

Competitive Advantage : Showcase the competitive edge that sets your startup apart from competitors. This could include intellectual property, strategic partnerships, cost advantages, or disruptive technology.

Business Model : Briefly explain how your startup generates revenue and sustains profitability. Outline your monetization strategy, pricing model, and any recurring revenue streams .

Traction and Milestones : Highlight any significant achievements or milestones reached by your startup. This could include customer acquisitions, partnerships, product development progress, or market validation.

Team : Showcase the expertise and qualifications of your founding team or business partners. Highlight key members and their relevant experiences demonstrating their ability to execute the business plan.

I can sense your eagerness to dive right in! To expedite your progress, I’m excited to present you with a collection of meticulously crafted executive summary templates. These templates have been thoughtfully designed and structured by Venngage designers, ensuring seamless integration into your thorough business plan. All you need to do is infuse them with your brilliant startup ideas, and you’ll be well on your way to success!

startup business financial plan

Now, remember that there’s still a ton of work to be done. Let’s take a moment to regroup and ensure we’re on the right track. Before diving into the process of writing your business plan , it’s imperative to gather a wealth of essential information. Conducting comprehensive research is key, and it should encompass the following aspects:

How to assess your target audience

To gain comprehensive insights into your potential user base, creating a user persona report is invaluable. This persona guide report will help you develop a detailed understanding of various user profiles, enabling you to tailor your products or services to meet their specific needs and preferences.

startup business financial plan

Understanding Your Market and Competition

Analyze your market and any trends relevant to your startup. Research your competitors, their strengths and weaknesses, and identify what differentiates your offering from the competition.

startup business financial plan

Developing a Unique Value Proposition

A business Unique Value Proposition (UVP) is a concise statement that communicates the unique advantage a product or service offers over competitors, addressing a specific problem or need. It highlights the distinctive value and benefits customers can expect, helping businesses attract and retain customers by differentiating themselves in the market.

Your unique value proposition (UVP) is the cornerstone of your startup, defining what sets you apart from your competitors. A strong UVP focuses on the specific benefits and solutions your startup offers to customers.

startup business financial plan

Company Description: Painting the Picture

Your company description allows you to showcase your startup’s unique features and provide more in-depth details about your business. This section should include:

The Purpose of the Company Description

Clarify the purpose of your business, your goals and how your startup is uniquely positioned to achieve them.

Essential Information to Include

Include details such as your company’s legal structure, location and a brief history of any founders or key personnel.

Showcase Your Company’s Unique Features

Emphasize the unique aspects of your startup, explaining how these features translate into a competitive advantage.

Allow me to provide you with a dash of inspiration to ignite the momentum for your startup business plan:

startup business financial plan

When it comes to showcasing your company’s unique features, keep in mind that it is essential to emphasize and highlight the distinctive aspects of your startup . Clearly articulate how these features set your company apart from competitors and translate into a tangible competitive advantage . 

Whether it’s through cutting-edge technology, innovative business models, exceptional customer service, or a combination of factors, conveying the value and impact of these unique features is crucial. By effectively communicating the benefits they bring to customers, investors, and partners, you can demonstrate the significance of your offerings and differentiate yourself in the market.

Product/Service Line: What You’re Bringing to the Table

This section highlights the finer details of your product or service offerings:

Detailing Your Product/Service Offerings

Provide a thorough description of your products/services, highlighting key features and their intended use.

startup business financial plan

Highlighting Features, Benefits, and Solutions

Demonstrate how your startup’s offerings solve specific problems or address customer needs through an analysis of product features and associated benefits.

startup business financial plan

Defining Your Pricing and Revenue Model

Outline your startup’s pricing strategy and how it aligns with the overall business model. Detail any plans for scaling or expanding your revenue sources in the future.

startup business financial plan

Presenting Your Market Research Findings

Share insights from your market research, including target customer demographics, market size, and growth potential.

startup business financial plan

Identifying Market Trends and Opportunities

Discuss current trends, emerging opportunities, and how your startup will capitalize on these developments.

startup business financial plan

Marketing and Sales Strategies: Spreading the Word

Developing a robust marketing and sales strategy plan aligns with your overall business strategy and ensures steady growth. Marketing planning will be an essential part of your journey once you’ve got your business plan tight-knit! Also, creating a marketing strategy can be the most fun part of your business plan!

Developing a Comprehensive Marketing Strategy & Plan

  • Outline Specific Marketing Goals : Clearly define your marketing objectives, whether it’s increasing brand awareness, driving website traffic, generating leads, or boosting sales . Set measurable targets to track progress.
  • Identify Target Audience : Conduct thorough market research to identify your ideal customer profiles. Understand their demographics, behaviors, preferences, and pain points. Tailor your marketing messages to resonate with their needs.
  • Select Effective Marketing Channels : Consider both digital and traditional channels that align with your target audience and marketing goals. This may include online advertising, social media marketing, content marketing, search engine optimization (SEO), email campaigns, print media, events, or partnerships.
  • Craft Compelling Messages : Develop persuasive and consistent messaging that highlights the unique value proposition of your products or services. Clearly communicate how your offerings solve customer problems or improve their lives.

startup business financial plan

5 Tips for Effective Sales Techniques and Growth Strategies + free templates

  • Define Your Sales Strategy : Outline the approach and tactics your sales team will use to reach and convert customers. This may involve direct sales, channel partnerships, online sales, or a combination of strategies. Specify your sales process, including lead generation, qualification, nurturing, and closing.
  • Expand Your Customer Base : Identify opportunities to expand your customer reach. Consider targeting new customer segments, entering new geographic markets, or exploring untapped market niches. Develop strategies to attract and engage these potential customers.
  • Penetrate New Markets : Assess the feasibility of expanding into new markets or verticals. Market research will help you understand the dynamics, competition, and customer needs in these markets. Adapt your marketing and sales strategies accordingly to effectively penetrate and capture market share.
  • Innovate Products/Services : Continuously evaluate and enhance your product or service offerings to meet evolving customer demands. Identify areas for innovation or improvement and develop a roadmap for launching new features, versions, or complementary offerings.
  • Perform a SWOT analysis : By conducting a sales SWOT analysis , you will gather valuable insights to enhance your department’s performance. This analysis involves evaluating your company’s strengths, weaknesses, opportunities, and threats, enabling you to identify areas for improvement and capitalize on advantageous factors in the market.

Here’s a hack to get you organized – Get right into it with the help of these growth strategy templates and strategic planning templates :

startup business financial plan

Operational Plan: How Your Startup Will Run

Define an efficient and scalable operational plan, keeping in mind the following points:

Defining an Efficient and Scalable Plan

Outline the day-to-day operations, including processes, timelines, and necessary resources.

Legal Considerations for Your Startup Business

Identify any legal requirements or considerations, such as licenses, permits, or regulations that may apply to your startup.

Key Elements of Supply Chain Management and Logistics

Discuss supply chain and logistical aspects relevant to your business. Include details on how you plan to manage and scale these processes.

Here’s a kickstart on how you can structure your operating plans:

startup business financial plan

Financial Projections: Crunching the Numbers

A startup’s financial projections are vital in securing investor buy-in. This section should address:

The Importance of Financial Forecasting and Budgeting

Explain the significance of accurate financial forecasting, budgeting, and the assumptions made in your projections.

Identifying Key Performance Indicators (KPIs)

Highlight the KPIs used to gauge your business’s financial health and growth trajectory.

Outlining Funding Requirements

Detail the amount and type of funding your startup requires , including how the funds will be allocated and how this investment positions the company for growth.

startup business financial plan

Team and Management Structure: Building Your Dream Team

Your startup’s success depends on the people behind it. This section should cover:

Tips for Building the Right Team

Share your strategy for assembling a skilled team that supports your startup’s vision and growth trajectory.

Founders’ Background and Roles

Provide an overview of the founders’ backgrounds, their roles within the company, and how their skills contribute to the startup’s success.

Organizational Structure and Key Management Personnel

Outline your startup’s organizational structure, including any key management personnel who play a pivotal role in day-to-day operations.

Appendices and Supporting Documents: Backing Up Your Plan

Include any other relevant supporting documents, such as:

  • Research data, market analysis, or competitor analyses.
  • Financial statements, budgeting or forecasting data, and other financial documentation.
  • Legal documents, agreements or contracts, and any patent or trademark information.

Finally, remember to review and update your business plan regularly as the industry, market, and competitive landscape evolve!

1. Why is a business plan essential for a startup?

A startup business plan is crucial for a startup because it provides a framework for strategic decision-making, facilitates financial planning, helps assess risks, aligns teams, communicates your vision, and ensures effective resource allocation. 

2. What should a startup business plan include?

A startup business plan should include:

  • Vision and Direction : Set clear goals and objectives, and outline strategies to achieve them. With a well-defined plan, you will stay focused, make informed decisions, and ensure alignment with your vision.
  • Market Analysis : A business plan necessitates thorough market research to understand your target market, identify competition, and assess product/service demand. These insights enable you to tailor offerings, meet customer needs, and gain a competitive edge.
  • Financial Planning : By constructing a financial roadmap through projected statements such as income, cash flow, and balance sheets, a business plan unveils the expected revenues, expenses, and profitability. This comprehensive planning not only anticipates challenges and sets realistic goals but also serves as a magnet for attracting investors and securing funding.
  • Risk Assessment : Devise strategies for risk mitigation and contingency planning. By proactively doing this, you can significantly enhance the likelihood of success by anticipating and effectively addressing potential obstacles.
  • Communication and Team Alignment : From fostering effective communication with both internal and external stakeholders to aligning team members and showcasing your startup’s unique value proposition, a business plan plays a crucial role. It enables you to articulate target market insights, competitive advantages, and growth strategies to potential investors, partners, and employees.
  • Resource Allocation : A business plan helps you identify the resources required to launch and operate your startup successfully. It includes an assessment of your human resources, technology needs, infrastructure requirements, and other key resources. By understanding your resource needs, you can allocate them effectively, ensuring that you have the necessary assets to execute your business strategy.
  • Adaptability and Flexibility : Your business plan should be flexible enough to accommodate changes and adapt to new circumstances. Startups operate in dynamic environments, and a well-designed plan allows you to monitor progress, evaluate outcomes, and make adjustments as needed. This agility enables you to seize new opportunities and navigate challenges effectively.

3. What is the ideal length for a startup business plan?

The optimal length for a startup business plan typically depends on the specific requirements and intended audience, but a concise and focused plan of around 20 to 30 pages is often recommended.

4. How to write a good startup business plan?

To write a good and effective startup plan, include an executive summary, company description, market analysis, detailed products/services description and a clear marketing and sales strategy. Also incorporate a comprehensive financial plan, outline your organizational structure, and demonstrates your team’s expertise and capabilities. Your plan should be well-researched, concise, and compelling, with a focus on your company’s unique value proposition and market opportunity, making it attractive to investors and stakeholders.

Utilizing Venngage templates & other tools for success

A visually appealing and professional business plan needn’t be a daunting task. Leverage tools like Venngage Business Plan Maker for effective templates that cater to various industries and streamline the process. 

  • Leveraging Venngage for Visually Appealing and Professional Business Plans

Venngage offers a range of templates designed specifically for business plans, allowing you to craft a polished and visually engaging plan without any design experience. Simply choose a template, customize it to suit your startup’s branding, and populate it with your content.

  • Exploring Additional Resources and Tools for Entrepreneurs. In addition to Venngage, several other resources and tools can assist entrepreneurs in crafting the perfect business plan. Examples include:
  • Small Business Administration (SBA) – Offers guidance on writing business plans and provides templates and resources for each section.
  • SCORE – A nonprofit organization providing mentorship, workshops, and other resources for entrepreneurs.
  • Industry-specific resources – Research relevant professional organizations, industry publications, and blogs to stay up to date on industry trends and insights.

Embarking on the entrepreneurial path may present formidable challenges, yet it offers abundant rewards in various aspects. Embrace the art of continuous learning, delving not only into the essence of your business idea but also immersing yourself in the vast world that surrounds it. Cultivate a genuine passion for understanding every facet of your enterprise, for it is through this journey of exploration that you will uncover invaluable insights and experience the true fulfillment of entrepreneurship.

startup business financial plan

How to Write a Small Business Financial Plan

Stairs leading up to a dollar sign. Represents creating a financial plan to achieve profitability.

Noah Parsons

3 min. read

Updated January 3, 2024

Creating a financial plan is often the most intimidating part of writing a business plan. It’s also one of the most vital. Businesses with well-structured and accurate financial statements in place are more prepared to pitch to investors, receive funding, and achieve long-term success.

Thankfully, you don’t need an accounting degree to successfully put your budget and forecasts together. Here is everything you need to include in your financial plan along with optional performance metrics, specifics for funding, and free templates.

  • Key components of a financial plan

A sound financial plan is made up of six key components that help you easily track and forecast your business financials. They include your:

Sales forecast

What do you expect to sell in a given period? Segment and organize your sales projections with a personalized sales forecast based on your business type.

Subscription sales forecast

While not too different from traditional sales forecasts—there are a few specific terms and calculations you’ll need to know when forecasting sales for a subscription-based business.

Expense budget

Create, review, and revise your expense budget to keep your business on track and more easily predict future expenses.

How to forecast personnel costs

How much do your current, and future, employees’ pay, taxes, and benefits cost your business? Find out by forecasting your personnel costs.

Profit and loss forecast

Track how you make money and how much you spend by listing all of your revenue streams and expenses in your profit and loss statement.

Cash flow forecast

Manage and create projections for the inflow and outflow of cash by building a cash flow statement and forecast.

Balance sheet

Need a snapshot of your business’s financial position? Keep an eye on your assets, liabilities, and equity within the balance sheet.

What to include if you plan to pursue funding

Do you plan to pursue any form of funding or financing? If the answer is yes, then there are a few additional pieces of information that you’ll need to include as part of your financial plan.

Highlight any risks and assumptions

Every entrepreneur takes risks with the biggest being assumptions and guesses about the future. Just be sure to track and address these unknowns in your plan early on.

Plan your exit strategy

Investors will want to know your long-term plans as a business owner. While you don’t need to have all the details, it’s worth taking the time to think through how you eventually plan to leave your business.

  • Financial ratios and metrics

With all of your financial statements and forecasts in place, you have all the numbers needed to calculate insightful financial ratios. While these metrics are entirely optional to include in your plan, having them easily accessible can be valuable for tracking your performance and overall financial situation.

Common business ratios

Unsure of which business ratios you should be using? Check out this list of key financial ratios that bankers, financial analysts, and investors will want to see.

Break-even analysis

Do you want to know when you’ll become profitable? Find out how much you need to sell to offset your production costs by conducting a break-even analysis.

How to calculate ROI

How much could a business decision be worth? Evaluate the efficiency or profitability by calculating the potential return on investment (ROI).

  • Financial plan templates and tools

Download and use these free financial templates and calculators to easily create your own financial plan.

startup business financial plan

Sales forecast template

Download a free detailed sales forecast spreadsheet, with built-in formulas, to easily estimate your first full year of monthly sales.

Download Template

startup business financial plan

Accurate and easy financial forecasting

Get a full financial picture of your business with LivePlan's simple financial management tools.

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See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Noah Parsons

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

startup business financial plan

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  • What to include for funding

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Do you want to increase the odds that your business startup will be a success? Download this step-by-step business plan template to lay the groundwork for your new business.

Writing a business plan allows you to carefully think through every step of starting your company so you can better prepare and handle any challenges. While a thorough business plan is essential in the financing process, it's helpful even if you don’t need outside financing.

Creating a business plan can:

  • Help you discover any weaknesses in your business idea so you can address them before you open for business
  • Identify business opportunities you may not have considered and plan how to take advantage of them
  • Analyze the market and competition to strengthen your idea
  • Give you a chance to plan strategies for dealing with potential challenges so they don’t derail your startup
  • Convince potential partners, customers, and key employees that you’re serious about your idea and persuade them to work with you
  • Force you to calculate when your business will make a profit and how much money you need to reach that point so that you can be prepared with adequate startup capital
  • Determine your target market and how to reach them

A detailed, step-by-step plan gives you a blueprint you can refer to during the startup process and helps you maintain momentum.

What this business plan template includes

Writing a business plan for a startup can sometimes seem overwhelming. To make the process easier and more manageable, this template will guide you step-by-step. The template includes easy-to-follow instructions for completing each business plan section, questions to help you think through each aspect, and corresponding fillable worksheet/s for critical sections.

After you complete the 11 worksheets, you will have a working business plan for your startup to show your SCORE mentor .

Business plan sections covered in this template:

  • Executive Summary
  • Company Description
  • Products and Services
  • Marketing Plan
  • Operational Plan
  • Management and Organization
  • Startup Expenses and Capitalization
  • Financial Plan

The Appendices include documents that supplement information in the body of the plan.  These might be contracts, leases, purchase orders, intellectual property, key managers’ resumes, market research data or anything that supports assumptions or statements made in the plan.

The last section of the template, “Refining Your Plan,” explains ways to modify your plan for specific purposes, such as getting a bank loan, or for specific industries, such as retail or manufacturing.

Complete the Business Plan Template for a Startup Business to create a working business plan for your startup.

Then, contact a  SCORE mentor  to review and refine your plan online or in person.

Quick Start Business Plan The aim of this module is to give you the tools, direction and ideas you need to build a business plan. If you're starting a business then a business plan is essential, because it forces you to think through your ideas and options.

10 Business Planning Tips for Starting a Business In this webinar, you'll learn 10 business planning tips to help you start your entrepreneurial journey on the right path.

Business Plan 101: Sales & Marketing The sales and marketing section of your business plan describes how you intend to sell your product. Learn what you should include in this section.

Copyright © 2023 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

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4 Steps to Creating a Financial Plan for Your Small Business

Rami Ali

When it comes to long-term business success, preparation is the name of the game. And the key to that preparation is a solid financial plan that sets forth a business’s short- and long-term financial goals and how it intends to reach them. Used by company decision-makers and potential partners, investors and lenders, alike, a financial plan typically includes the company’s sales forecast, cash flow projection, expected expenses, key financial metrics and more. Here is what small businesses should understand to create a comprehensive financial plan of their own.

What Is a Financial Plan?

A financial plan is a document that businesses use to detail and manage their finances, ensure efficient allocation of resources and inform a plethora of decisions — everything from setting prices, to expanding the business, to optimizing operations, to name just a few. The financial plan provides a clear understanding of the company’s current financial standing; outlines its strategies, goals and projections; makes clear whether an idea is sustainable and worthy of investment; and monitors the business’s financial health as it grows and matures. Financial plans can be adjusted over time as forecasts become replaced with real-world results and market forces change.

A financial plan is an integral part of an overall business plan, ensuring financial objectives align with overall business goals. It typically contains a description of the business, financial statements, personnel plan, risk analysis and relevant key performance indicators (KPIs) and ratios. By providing a comprehensive view of the company’s finances and future goals, financial plans also assist in attracting investors and other sources of funding.

Key Takeaways

  • A financial plan details a business’s current standing and helps business leaders make informed decisions about future endeavors and strategies.
  • A financial plan includes three major financial statements: the income statement, balance sheet and cash flow statement.
  • A financial plan answers essential questions and helps track progress toward goals.
  • Financial management software gives decision-makers the tools they need to make strategic decisions.

Why Is a Financial Plan Important to Your Small Business?

A financial plan can provide small businesses with greater confidence in their short- and long-term endeavors by helping them determine ways to best allocate and invest their resources. The process of creating the plan forces businesses to think through how different decisions could impact revenue and which occasions call for dipping into reserve funds. It’s also a helpful tool for monitoring performance, managing cash flow and tracking financial metrics.

Simply put, a financial plan shows where the business stands; over time, its analysis will reveal whether its investments were worthwhile and worth repeating. In addition, when a business is courting potential partners, investors and lenders, the financial plan spotlights the business’s commitment to spending wisely and meeting its financial obligations.

Benefits of a Financial Plan

A financial plan is only as effective as the data foundation it’s built on and the business’s flexibility to revisit it amid changing market forces and demand shifts. Done correctly, a financial plan helps small businesses stay on track so they can reach their short-term and long-term goals. Among the benefits that effective financial planning delivers:

  • A clear view of goals and objectives: As with any type of business plan, it’s imperative that everyone in a company is on the same financial page. With clear responsibilities and expected results mapped out, every team member from the top down sees what needs to be done, when to do it and why.
  • More accurate budgets and projections: A comprehensive financial plan leads to realistic budgets that allocate resources appropriately and plan for future revenue and expenses. Financial projections also help small businesses lay out steps to maintain business continuity during periods of cash flow volatility or market uncertainty.
  • External funding opportunities: With a detailed financial plan in hand, potential partners, lenders and investors can see exactly where their money will go and how it will be used. The inclusion of stellar financial records, including past and current liabilities, can also assure external funding sources that they will be repaid.
  • Performance monitoring and course correction: Small businesses can continue to benefit from their financial plans long after the plan has been created. By continuously monitoring results and comparing them with initial projections, businesses have the opportunity to adjust their plans as needed.

Components of a Small Business Financial Plan

A sound financial plan is instrumental to the success and stability of a small business. Whether the business is starting from scratch or modifying its plan, the best financial plans include the following elements:

Income statement: The income statement reports the business’s net profit or loss over a specific period of time, such a month, quarter or year. Also known as a profit-and-loss statement (P&L) or pro forma income statement, the income statement includes the following elements:

  • Cost of goods sold (COGS): The direct costs involved in producing goods or services.
  • Operating expenses: Rent, utilities and other costs involved in running the business.
  • Revenue streams: Usually in the form of sales and subscription services, among other sources.
  • Total net profit or loss: Derived from the total amount of sales less expenses and taxes.

Balance sheet: The balance sheet reports the business’s current financial standing, focusing on what it owns, what it owes and shareholder equity:

  • Assets: Available cash, goods and other owned resources.
  • Liabilities: Amounts owed to suppliers, personnel, landlords, creditors, etc.

Shareholder equity: Measures the company’s net worth, calculated with this formula:

Shareholder Equity = Assets – Liability

The balance sheet lists assets, liabilities and equity in chart format, with assets in the left column and liabilities and equity on the right. When complete — and as the name implies —the two sides should balance out to zero, as shown on the sample balance sheet below. The balance sheet is used with other financial statements to calculate business financial ratios (discussed soon).

Balance Sheet

Cash flow projection: Cash flow projection is a part of the cash flow statement , which is perhaps one of the most critical aspects of a financial plan. After all, businesses run on cash. The cash flow statement documents how much cash came in and went out of the business during a specific time period. This reveals its liquidity, meaning how much cash it has on hand. The cash flow projection should display how much cash a business currently has, where it’s going, where future cash will come from and a schedule for each activity.

Personnel plan: A business needs the right people to meet its goals and maintain a healthy cash flow. A personnel plan looks at existing positions, helps determine when it’s time to bring on more team members and determines whether new hires should be full-time, part-time or work on a contractual basis. It also examines compensation levels, including benefits, and forecasts those costs against potential business growth to gauge whether the potential benefits of new hires justify the expense.

Business ratios: In addition to a big-picture view of the business, decision-makers will need to drill down to specific aspects of the business to understand how individual areas are performing. Business ratios , such as net profit margin, return on equity, accounts payable turnover, assets to sales, working capital and total debt to total assets, help evaluate the business’s financial health. Data used to calculate these ratios come from the P&L statement, balance sheet and cash flow statement. Business ratios contextualize financial data — for example, net profit margin shows the profitability of a company’s operations in relation to its revenue. They are often used to help request funding from a bank or investor, as well.

Sales forecast: How much will you sell in a specific period? A sales forecast needs to be an ongoing part of any planning process since it helps predict cash flow and the organization’s overall health. A forecast needs to be consistent with the sales number within your P&L statement. Organizing and segmenting your sales forecast will depend on how thoroughly you want to track sales and the business you have. For example, if you own a hotel and giftshop, you may want to track separately sales from guests staying the night and sales from the shop.

Cash flow projection: Perhaps one of the most critical aspects of your financial plan is your cash flow statement . Your business runs on cash. Understanding how much cash is coming in and when to expect it shows the difference between your profit and cash position. It should display how much cash you have now, where it’s going, where it will come from and a schedule for each activity.

Income projections: Businesses can use their sales forecasts to estimate how much money they are on track to make in a given period, usually a year. This income projection is calculated by subtracting anticipated expenses from revenue. In some cases, the income projection is rolled into the P&L statement.

Assets and liabilities: Assets and liabilities appear on the business’s balance sheet. Assets are what a company owns and are typically divided into current and long-term assets. Current assets can be converted into cash within a year and include stocks, inventory and accounts receivable. Long-term assets are tangible or fixed assets designed for long-term use, such as furniture, fixtures, buildings, machinery and vehicles.

Liabilities are business obligations that are also classified as current and long-term. Current liabilities are due to be paid within a year and include accrued payroll, taxes payable and short-term loans. Long-term liabilities include shareholder loans or bank debt that mature more than a year later.

Break-even analysis: The break-even point is how much a business must sell to exactly cover all of its fixed and variable expenses, including COGS, salaries and rent. When revenue exceeds expenses, the business makes a profit. The break-even point is used to guide sales revenue and volume goals; determination requires first calculating contribution margin , which is the amount of sales revenue a company has, less its variable costs, to put toward paying its fixed costs. Businesses can use break-even analyses to better evaluate their expenses and calculate how much to mark up its goods and services to be able to turn a profit.

Four Steps to Create a Financial Plan for Your Small Business

Financial plans require deliberate planning and careful implementation. The following four steps can help small businesses get started and ensure their plans can help them achieve their goals.

Create a strategic plan

Before looking at any numbers, a strategic plan focuses on what the company wants to accomplish and what it needs to achieve its goals. Will it need to buy more equipment or hire additional staff? How will its goals affect cash flow? What other resources are needed to meet its goals? A strategic financial plan answers these questions and determines how the plan will impact the company’s finances. Creating a list of existing  expenses  and assets is also helpful and will inform the remaining financial planning steps.

Create financial projections

Financial projections should be based on  anticipated expenses and sales forecasts . These projections look at the business’s goals and estimate the costs needed to reach them in the face of a variety of potential scenarios, such as best-case, worst-case and most likely to happen. Accountants may be brought in to review the plan with stakeholders and suggest how to explain the plan to external audiences, such as investors and lenders.

Plan for contingencies

Financial plans should use data from the cash flow statement and balance sheet to inform worst-case scenario plans, such as when incoming cash dries up or the business takes an unexpected turn. Some common contingencies include keeping cash reserves or a substantial line of credit for quick access to funds during slow periods. Another option is to produce a plan to sell off assets to help break even.

Monitor and compare goals

Actual results in the cash flow statement, income projections and relevant business ratios should be analyzed throughout the year to see how closely real-life results adhered to projections. Regular check-ins also help businesses spot potential problems before they can get worse and inform course corrections.

Three Questions Your Financial Plan Should Answer

A small business financial plan should be tailored to the needs and expectations of its intended audience, whether it is potential investors, lenders, partners or internal stakeholders. Once the plan is created, all parties should, at minimum, understand:

How will the business make money?

What does the business need to achieve its goals?

What is the business’s  operating budget ?

Financial plans that don’t answer these questions will need more work. Otherwise, a business risks starting a new venture without a clear path forward, and decision-makers will lack the necessary insights that a detailed financial plan would have provided.

Improve Your Financial Planning With Financial Management Software

Using spreadsheets for financial planning may get the job done when a business is first getting started, but this approach can quickly become overwhelming, especially when collaborating with others and as the business grows.

NetSuite’s cloud-based financial management platform simplifies the labor-intensive process through automation. NetSuite Planning and Budgeting automatically consolidates real-time data for analysis, reporting and forecasting, thereby improving efficiency. With intuitive dashboards and sophisticated forecasting tools, businesses can create accurate financial plans, track progress and modify strategies in order to achieve and maintain long-term success. The solution also allows for scenario planning and workforce planning, plus prebuilt data synchronization with NetSuite ERP means the entire business is working with the same up-to-date information.

Whether a business is first getting started, looking to expand, trying to secure outside funding or monitoring its growth, it will need to create a financial plan. This plan lays out the business’s short- and long-term objectives, details its current and projected finances, specifies how it will invest its resources and helps track its progress. Not only does a financial plan guide the business along its way, but it is typically required by outside sources of funding that don’t invest or lend their money to just any company. Creating a financial plan may take some time, but successful small businesses know it is well worth the effort.

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Small Business Financial Plan FAQs

How do I write a small business financial plan?

Writing a small business financial plan is a four-step process. It begins with creating a strategic plan, which covers the company’s goals and what it needs to achieve them. The next step is to create financial projections, which are dependent on anticipating sales and expenses. Step three plans for contingencies: For example, what if the business were to lose a significant client? Finally, the business must monitor its goals, comparing actual results to projections and adjusting as needed.

What is the best financial statement for a small business?

The income statement, also known as the profit and loss (P&L) statement, is often considered the most important financial statement for small businesses, as it summarizes profits and losses and the business’s bottom line over a specific financial period. For financial plans, the cash flow statement and the balance sheet are also critical financial statements.

How often should businesses update their financial plans?

Financial plans can be updated whenever a business deems appropriate. Many businesses create three- and five-year plans and adjust them annually. If a market experiences a large shift, such as a spike in demand or an economic downturn, a financial plan may need to be updated to reflect the new market.

What are some common mistakes to avoid when creating a small business financial plan?

Some common mistakes to avoid when creating a small business financial plan include underestimating expenses, overestimating revenue, failing to plan for contingencies and adhering to plans too strictly when circumstances change. Plans should be regularly updated to reflect real-world results and current market trends.

How do I account for uncertainty and potential risks in my small business financial plan?

Small businesses can plan for uncertainty by maintaining cash reserves and opening lines of credit to cover periods of lower income or high expenses. Plans and projections should also take into account a variety of potential scenarios, from best case to worst case.

What is a typical business financial plan?

A typical business financial plan is a document that details a business’s goals, strategies and projections over a specific period of time. It is used as a roadmap for the organization’s financial activities and provides a framework for decision-making, resource allocation and performance evaluation.

What are the seven components of a financial plan?

Financial plans can vary to suit the business’s needs, but seven components to include are the income statement, operating income, net income, cash flow statement, balance sheet, financial projections and business ratios. Various financial key performance indicators and a break-even analysis are typically included as well.

What is an example of a financial plan?

A financial plan serves as a snapshot of the business’s current standing and how it plans to grow. For example, a restaurant looking to secure approval for a loan will be asked to provide a financial plan. This plan will include an executive summary of the business, a description and history of the company, market research into customer base and competition, sales and marketing strategies, key performance indicators and organizational structure. It will also include elements focusing on the future, such as financial projections, potential risks and funding requirements and strategies.

Financial Management

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Small Business Financial Management: Tips, Importance and Challenges

It is remarkably difficult to start a small business. Only about half stay open for five years, and only a third make it to the 10-year mark. That’s why it’s vital to make every effort to succeed. And one of the most fundamental skills and tools for any small business owner is sound financial management.

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8 Tips to Create a Startup Financial Plan

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What is Financial Planning?

One of the primary benefits of financial planning for startups is that it provides a clear understanding of their financial performance. By analyzing financial data and identifying key performance metrics, startups can develop strategies to improve their financial performance and achieve their business goals. This allows businesses to make informed decisions and ensures that they have the necessary resources to execute their plans.

Investors are also more likely to invest in startups that have well-developed financial plans. A comprehensive financial plan demonstrates a startup's ability to manage its finances effectively and provides investors with the confidence that their investment is secure. Therefore, having a well-designed financial plan is crucial to securing funding from investors.

While financial planning and business planning are closely related, they serve different purposes. Business planning focuses on creating a vision, setting goals, and developing strategies to achieve them, whereas financial planning is more focused on managing the financial resources required to achieve these goals. Financial planning is an integral part of business planning as it helps businesses to make informed decisions and ensures that they have the necessary resources to execute their plans.

Forecasting and budgeting are two essential components of financial planning. Estimating future financial performance is one of the tasks involved in forecasting. This is done by looking at historical data as well as current trends. Budgeting involves setting financial goals and developing a plan to allocate resources to achieve them. Forecasting and budgeting allow startups to recognize potential threats and opportunities and to make decisions about resource allocation that are based on accurate information. This makes it easier for new businesses to stay on track and accomplish their financial objectives.

Financial statements such as the balance sheet, income statement, and cash flow statement are critical components of financial planning. These statements provide an overview of a startup's financial performance, including its assets, liabilities, income, and expenses. By analyzing these financial statements, startups can identify their strengths and weaknesses and make informed decisions about their financial resources.

startup business financial plan

External factors such as market trends, competition, and economic conditions can significantly impact a startup's financial performance. Financial planning should consider the impact of these external factors and develop strategies to mitigate risks and capitalize on opportunities. For example, a startup may need to adjust its pricing strategy in response to changes in the market or invest in marketing to remain competitive. By considering external factors, startups can make better decisions and adapt to changing market conditions.

Risk management is another crucial component of financial planning. When creating a financial plan, it's important to consider the potential risks and uncertainties that can impact your business. Examples of financial risks that startups may face include market volatility, unexpected expenses, changes in regulations, and disruptions in supply chains. By incorporating risk management into your financial planning process, you can proactively identify and address potential issues before they become major financial setbacks. This can help you maintain financial stability and ensure the long-term success of your startup.

Financial planning provides a roadmap to achieving financial goals, allows businesses to make informed decisions about resource allocation, and helps secure funding from investors. By considering external factors, forecasting and budgeting, analyzing financial statements, and incorporating risk management into the financial planning process, startups can maintain financial stability and ensure their long-term success.

Why is Financial Planning Important for Startups?

By creating a financial plan, entrepreneurs can forecast revenue and expenses, identify potential risks, and make informed decisions. This process is not only important for securing funding but also for ensuring the long-term sustainability of the business.

One of the key benefits of financial planning is the ability to understand market principles. By analyzing market trends, startups can make informed decisions about product development, pricing strategies, and marketing efforts. A financial plan can also help startups to develop a realistic revenue model and understand the potential impact of changes in the market.

Another important aspect of financial planning is creating a plan that works. Startups can use financial planning to identify the key drivers of their business, such as customer acquisition cost and lifetime value, and develop strategies to optimize these metrics. By setting achievable goals and tracking progress over time, startups can stay on track and make data-driven decisions.

Financial planning also helps startups to identify potential obstacles and develop contingency plans. By conducting a thorough risk analysis, startups can anticipate challenges and develop strategies to mitigate them. This can help to minimize the impact of unforeseen events and maintain business continuity.

In addition, financial planning allows startups to understand different scenarios and develop strategies for each. By creating a variety of financial models, entrepreneurs can assess the impact of different market conditions and make informed decisions about resource allocation. This helps to ensure that the business is well-positioned to weather any economic or market fluctuations.

Financial planning can also save startups both time and money. By having a clear understanding of their financial position and goals, entrepreneurs can focus their efforts on high-value activities and avoid wasting resources on unproductive projects or initiatives. This helps to ensure that the company runs efficiently and effectively.

Having a plan helps to keep startups focused on their goals. By setting targets and tracking progress, entrepreneurs can maintain their motivation and focus on achieving their objectives. This can help to drive innovation and growth and ensure the long-term success of the business. With a clear plan in place, startups can stay focused, save time and money, and achieve their goals more quickly.

startup business financial plan

What Makes a Good Financial Plan for a Start-up Business?

A well-designed financial plan can help entrepreneurs avoid unexpected costs, forecast cash flow, and determine the viability of business ideas. To create a financial plan that works, startups must keep in mind some essential tips.

Entrepreneurs must be creative and think outside the box when developing a financial plan. This means considering various sources of revenue, cost-cutting measures, and unique financing options. By being creative, startups can find new opportunities to generate revenue, reduce costs, and improve profitability.

Another crucial aspect of financial planning is cash flow management. Startups must never underestimate the importance of cash, particularly in the early stages of business development. Without sufficient cash, startups may struggle to cover expenses and survive market downturns. Therefore, a good plan must prioritize cash management by tracking cash inflows and outflows, maintaining cash reserves, and anticipating future cash needs.

Financial planning is not a one-time event; it is an ongoing process that never ends. Startups must realize that their financial plan is a living document that should be continuously updated to reflect changes in the market and the business itself. By regularly reviewing and updating the financial plan, startups can stay ahead of any potential problems and keep their financials on track.

Furthermore, a good financial plan must align with the startup's business goals and objectives. The financial plan should support the startup's broader strategy, and the projections included in the plan should be realistic and attainable. Startups should avoid creating financial plans that are too optimistic, as this may lead to unrealistic expectations and disappointment down the line.

Creating a successful plan is the key foundation to building and maintaining a successful startup. Startups must be creative, prioritize cash management, view financial planning as a continuous process, incorporate multiple scenarios, align the plan with business goals, and regularly review and update the plan. By following these suggestions, startups can develop a financial plan that supports the business strategy to help them achieve their long-term objectives.

How to Produce a Startup Financial Plan?

Starting a new business venture can be an exhilarating experience, but it also requires a great deal of planning, especially when it comes to finances. Developing a financial plan that will set your business up for success is crucial, and it all starts with defining your business goals. Identifying your short-term and long-term objectives using the SMART criteria (specific, measurable, achievable, relevant, and time-bound) will help you stay focused on what you want to achieve.

Once you have defined your goals, the next step is to identify the key performance indicators (KPIs) that you will use to measure your progress. By doing so, you can keep track of your performance and make necessary adjustments as needed. For example, if your goal is to increase revenue, your KPIs might include sales growth rate, customer acquisition cost, and customer lifetime value.

Collecting and importing data about your business is also an important step in developing an accurate financial plan. This includes financial statements, balance sheets, cash flow statements, and income statements. By having a baseline for your financial projections, you can identify areas where you need to focus your efforts.

When it comes to tools to use, there are several options available, such as Excel spreadsheets, financial planning software, and business plan templates. Choosing the right tool will depend on your business needs, budget, and level of expertise. It is essential to choose a tool that is user-friendly, easy to navigate, and provides accurate results.

Estimating your start-up costs and cash flow needs is crucial when starting a new business. This includes identifying the initial investment needed to get your business off the ground and ongoing cash flow needs. By projecting all revenue and expense projections, as well as any financing or investment that you may require, you can accurately estimate your cash flow needs.

One important tool for assessing the financial viability of your start-up is a break-even analysis. It helps you determine the point at which your revenue will cover your costs and when you will begin to make a profit. Identifying your fixed and variable costs, as well as your revenue projections, is essential in preparing a break-even analysis.

Finally, developing contingency plans is crucial for mitigating risks and ensuring your business's financial stability in the long run. Contingency plans outline what steps you will take if unexpected events, such as economic downturns or supply chain disruptions, occur. Having contingency plans in place can help you stay on track and ensure that your business is financially resilient.

Developing a financial plan is a crucial step in setting your new business up for success. Defining your business goals, identifying key performance metrics, collecting and importing data about your business, estimating startup costs and cash flow, preparing a break-even analysis, and developing contingency plans are all essential components of a comprehensive financial plan. By following these steps, you can set your business on the path to financial stability and success.

startup business financial plan

8 Tips to Create a Financial Plan for Startups

Tip 1: determine your revenue streams.

As you begin to develop your financial plan, it's important to think about different ways your business can generate revenue. To do this, you should determine your revenue streams. Revenue streams refer to the various sources of income for your business, such as sales of products or services, membership fees, or advertising revenue. By identifying your revenue streams, you can create a solid foundation for your financial projections.

Once you have identified your revenue streams, you can estimate the potential amount of money each stream may generate. This estimate will serve as a starting point for your financial projections. To make accurate projections, you will need to consider factors such as market demand, competition, and pricing strategies. By carefully analyzing your revenue streams, you can develop a plan that maximizes your earning potential and sets your business up for success.

Tip 2: Estimate Your Expenses

Once you've identified your revenue streams, it's time to estimate your expenses. Your expenses will include fixed costs, as well as variable costs like those related to marketing and supply. Fixed costs are expenses that do not vary with changes in the volume of goods or services produced, such as rent or salaries. Variable costs are expenses that do vary with changes in the volume of goods or services produced, such as marketing or supply costs.

It's important to carefully consider any early expenses that are essential for starting your company, such as the acquisition of any necessary equipment. You can try to be creative and think of any possible unforeseen expenses that may arise. Having a solid understanding of your expenses will help you to create an accurate financial plan and ensure that your business remains financially stable in the long run.

Tip 3:  Create Financial Assumptions

When it comes to creating financial assumptions, don't overlook the potential impact of external factors such as competition, changes in the economy, and shifts in consumer behavior. These factors can have a significant impact on your business's financial performance, so it's essential to consider them in your assumptions. In addition, consider the potential risks associated with your assumptions and develop contingency plans to address them.

Another aspect to consider when creating financial assumptions is the timing of revenue and expenses. For example, if you're launching a new product, it may take time for sales to ramp up and generate revenue. Similarly, expenses may be higher in the early stages of the business as you invest in marketing and infrastructure. By considering the timing of revenue and expenses, you can create more accurate financial assumptions that will help you plan for the future.

Overall, creating financial assumptions requires careful consideration of both internal and external factors, as well as a realistic view of the timing of revenue and expenses. By taking the time to create accurate assumptions, you'll be better equipped to create financial forecasts that will guide your business decisions and set you up for long-term success.

Tip 4: Develop Realistic Financial Projections 

Creating financial projections for your business requires a careful analysis of several key factors. Begin by determining the sources of income that your business will rely on, and estimate the expected amounts of revenue that each of these streams will generate. This might include sales of products or services, membership fees, or any other revenue-generating activities. Next, take into account the costs your business will incur, including fixed expenses such as rent, salaries, and utilities, as well as variable costs like marketing and supplies. Be sure to also consider any early expenses that may be necessary to start your company, such as the purchase of equipment or inventory.

Once you have a clear picture of your potential revenue and expenses, it's time to develop realistic financial projections. This means looking ahead three to five years into the future and making educated assumptions about the growth of the market, customer adoption rates, and any other factors that could impact your business. By taking a methodical approach and basing your projections on solid data and reasonable assumptions, you can create a financial plan that will guide your company toward long-term success.

Tip 5: Identify Funding Sources

As an entrepreneur, it's important to be creative and consider alternative methods for securing funds that may not be immediately apparent. For example, you may want to consider using crowdfunding platforms to raise capital from a large number of small investors. You may also want to look into angel investors or venture capitalists who may be interested in investing in promising new ventures.

When seeking funding, it's important to understand the terms and conditions of any funding sources that you're considering. Be sure to carefully review any contracts or agreements that you're asked to sign, and make sure that you understand the repayment terms, interest rates, and any other fees or charges associated with the funding. It's also a good idea to have a clear plan in place for how you will use the funds that you receive and to have a solid understanding of your company's financial needs and goals. By taking the time to carefully consider your funding options and create a solid plan, you'll be better equipped to secure the funding you need to launch and grow your new business.

Tip 6: Set Realistic Growth Goals

Setting growth goals for your company is critical to its success, but it's also essential to establish objectives that are both realistic and achievable. By considering your company's financial projections, you can determine the growth goals that are both feasible and maximize your company's potential. When setting growth objectives, it's critical to strike a balance between goals that are achievable while still presenting a challenge. Your objectives should also be aligned with your firm's overall goals.

One way to set realistic growth goals is by breaking them down into smaller, more manageable targets. For example, you can set monthly or quarterly growth goals that align with your overall annual goals. This approach allows you to track progress more frequently and make necessary adjustments to your strategy as you move forward. Additionally, consider utilizing KPIs to track progress and measure success. This can help you identify areas that need improvement and those where you're excelling, allowing you to make data-driven decisions to optimize growth.

Tip 7: Monitor and Adjust Your Financial Plan

Once you have established your financial plan, it's crucial to continuously monitor your progress and make necessary adjustments. This will ensure that your plan remains effective and responsive to any changes in the market or your business. Keep a close eye on your actual sales and expenses and regularly compare them to your projections. Use this information to identify areas where you may need to make changes to your strategy.

Be proactive in making any necessary changes to your financial plan. Don't wait until you're in a difficult situation before taking action. Regularly review your financial goals and adjust them as needed. This can involve reevaluating your revenue streams, reducing expenses, or exploring new funding sources. By staying on top of your finances and making proactive adjustments, you can ensure that your business remains financially healthy and well-positioned for growth.

Tip 8: Seek Professional Assistance

Creating a financial plan for your new company venture can be daunting, especially if you lack expertise in financial management. However, seeking professional assistance can be a game-changer. You should consider utilizing the services of a professional financial planner or accountant who can help you establish realistic financial projections and ensure that your plan aligns with the objectives you have set for your business.

In addition to a financial planner or accountant, you might also want to consider hiring a business coach or mentor. These professionals can provide guidance and support in all areas of your business, not just financial management. They can help you develop strategies for growth, improve your decision-making skills, and provide a fresh perspective on your business operations. Moreover, a mentor can share valuable insights from their own experience, providing you with valuable advice and guidance along the way.

Another option to consider is joining a business accelerator or incubator program. These programs offer resources and support to help entrepreneurs grow and scale their businesses. They provide access to mentorship, networking opportunities, funding, and other resources that can help you achieve your goals. Additionally, you may also receive training and education on various aspects of business management, including financial planning.

How Can Sturppy Help You?

At Sturppy, we understand the challenges that come with financial planning for startups, which is why we have developed a platform that makes the process easier, faster, and more efficient.

One of the biggest obstacles for startups (especially startups that are planning on raising funding) is developing a comprehensive financial plan. Our platform is designed to address this challenge by enabling you to create a financial model for your startup in just a few minutes. We offer customizable templates and financial tools to make the process as easy as possible. All you need to do is input your assumptions, and our software will generate a detailed financial plan that is tailored to your business needs. No financial expertise required!

Sturppy is an affordable and accessible financial planning solution for startups of all sizes. We offer flexible pricing plans that allow you to choose the package that suits your business best. We understand that startups have limited resources and budgets, which is why we don't charge outrageous fees for financial planning services. We believe that every dollar counts, and we're committed to providing startups with a cost-effective solution to financial planning.

One of the biggest advantages of Sturppy is the ability to create multiple scenarios. This feature allows you to test different assumptions and see the financial impact of different strategies. It's particularly useful when determining the most effective growth strategies or exploring new markets. With Sturppy, you can quickly and easily see the impact of these decisions on your financial performance.

Sturppy is also a valuable tool for monitoring your real-time data and comparing it to your forecasts. This is essential when determining whether your business is on track to meet its financial goals. Sturppy provides you with the tools to make data-driven decisions so you can optimize your business performance and grow your startup.

We understand that startups are unique, and that's why our platform is customizable to meet your specific needs. Whether you're a tech startup, a service-based business, or a brick-and-mortar store, Sturppy can help you create a financial plan that is tailored to your business needs. Our templates are easy to use and can be customized to include the specific metrics that are most important to your business.

At Sturppy, we pride ourselves on providing exceptional customer service. Our team is available to answer any questions you may have and provide you with the support you need to make the most of our platform. We are committed to ensuring that our customers have a seamless experience and can achieve their financial planning goals with ease.

Our platform provides a fast, affordable, and customizable solution that enables you to make data-driven decisions and optimize your business performance. With Sturppy, you can avoid painful mistakes and go to market faster, so you can focus on what really matters — growing your startup. Sign up with Sturppy today and take the first step towards creating a comprehensive financial plan for your business.

Sturppy Planning dashboard example - the image is of a financial model dashboard containing graphs for a fictitious company called Slacker.

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Business Startup Financial Plan Template

Business Startup Financial Plan Template

What is a Business Startup Financial Plan?

A business startup financial plan is a comprehensive plan that helps business owners and entrepreneurs manage cash flow, fund operations, and reach financial goals. It is a roadmap that provides a clear view of current financial standings and outlines the steps to be taken to reach future goals. The plan should include revenue and expense projections and should be tailored to fit the unique needs of each business.

What's included in this Business Startup Financial Plan template?

  • 3 focus areas
  • 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Business Startup Financial Plan template for?

The Business Startup Financial Plan template is for entrepreneurs, business owners, and startups who are looking for an effective way to manage and grow their business. This template provides an easy-to-understand and comprehensive approach to financial planning, allowing entrepreneurs to make informed decisions that will help their business succeed.

1. Define clear examples of your focus areas

Focus areas are the broad topics that need to be addressed in order to achieve success. Examples of focus areas in a business startup financial plan include financial management, human resources, and product development. Each focus area will have its own objectives, actions, and KPIs that need to be identified and tracked.

2. Think about the objectives that could fall under that focus area

The objectives are the specific goals that need to be achieved to reach success within a focus area. For example, under the focus area of financial management, objectives may include managing cash flow, securing credit or capital, and budgeting. The objectives should be specific and measurable.

3. Set measurable targets (KPIs) to tackle the objective

KPIs (Key Performance Indicators) are measurable targets that should be set to track the progress of an objective. For example, under the objective of managing cash flow, a KPI may be to monitor cash balance with a target of reaching $500. It is important to set targets that are realistic and achievable.

4. Implement related projects to achieve the KPIs

Projects (actions) are the steps needed to achieve a KPI. For example, to reach the KPI of monitoring cash balance, an action may be to analyze revenue and expenses. Projects should be specific, measurable, achievable, and time-bound.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade is a strategy execution platform that helps businesses implement their financial plans and track progress towards financial goals. With its easy-to-use dashboards, Cascade enables businesses to quickly and accurately track KPIs and ensure that objectives are met. Cascade is a powerful tool that can help businesses reach their financial goals faster and more efficiently.

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4 Key Financial Statements For Your Startup Business Plan

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  • September 12, 2022
  • Fundraising

financial statements startup business plan

If you’re preparing a business plan for your startup, chances are that investors (or a bank) have also asked you to produce financial projections for your business. That’s absolutely normal: any startup business plan should at least include forecasts of the 3 financial statements.

The financial projections need to be presented clearly with charts and tables so potential investors understand where you are going, and how much money you need to get there .

In this article we explain you what are the 4 financial statements you should include in the business plan for your startup. Let’s dive in!

Financial Statement #1: Profit & Loss

The profit and loss (P&L) , also referred to as “income statement”, is a summary of all your revenues and expenses over a given time period .

By subtracting expenses from revenues, it gives a clear picture of whether your business is profitable, or loss-making. With the balance sheet and the cash flow statement, it is one of the 3 consolidated financial statements every startup must produce every fiscal year .

Most small businesses produce a P&L on a yearly basis with the help of their accountant. Yet it is good practice to keep track of all revenues and expenses on a monthly or quarterly basis as part of your budget instead.

When projecting your financials as part of your business plan, you must do so on a monthly basis. Usually, most startups project 3 years hence 36 months. If you have some historical performance (for instance you started your business 2 years ago), project 5 years instead.

startup business financial plan

Expert-built financial model templates for tech startups

Financial Statement #2: Cash Flow

Whilst your P&L includes all your business’ revenues and expenses in a given period, the cash flow statement records all cash inflows and outflows over that same period.

Some expenses are not necessarily recorded in your P&L but should be included in your cash flow statement instead. Why is that? There are 2 main reasons:

  • Your P&L shows a picture of all the revenues you generated over a given period as well as the expenses you incurred to generate these revenues . If you sell $100 worth of products in July 2021 and incurred $50 cost to source them from your supplier, your P&L shows $100 revenues minus $50 expenses for that month. But what about if you bought a $15,000 car to deliver these products to your customers? The $15,000 should not be recorded as an expense in your P&L, but a cash outflow instead. Indeed, the car will help you generate revenues, say over the next 5 years, not just in July 2021
  • Some expenses in your P&L are not necessarily cash outflows. Think depreciation and amortization expenses for instance: they are pure artificial expenses and aren’t really “spent”. As such, whilst your P&L might include a $100 depreciation expense, your cash flow remains the same.

startup business financial plan

Financial Statement #3: Balance Sheet

Whilst the P&L and cash flow statement are a summary of your financial performance over a given time period, the balance sheet is a picture of your financials at a given time.

The balance sheet lists all your business’ assets and liabilities at a given time (at end of year for instance). As such, it includes things such as:

  • Assets: patents, buildings, equipments, customer receivables, tax credits etc. Assets can be either tangible (e.g. buildings) or intangible (e.g. customer receivables ).
  • Liabilities: debt, suppliers payables, etc.
  • Equity : the paid-in capital invested to date in the company (from you and any other potential investors). Equity also includes the cumulative result of your P&L: the sum of your profits and losses to date

Whilst P&L and cash flow statement are fairly simple to build when preparing your business plan, you might need help for your balance sheet.

startup business financial plan

Financial Statement #4: Use of Funds

The use of funds is not a mandatory financial statement your accountant will need to prepare every year. Instead, you shall include it in your startup business plan, along with the 3 key financial statements.

Indeed, the use of funds tells investors where you will spend your money over a given time frame. For instance, if you are raising $500k to open a retail shop, you might need $250k for the first year lease and another $250k for the inventory.

Use of funds should not be an invention from you: instead it is the direct result of your cash flow statement . If you are raising for your first year of business, and your projected cash flow statement result in a $500k loss (including all revenues and expenses), you will need to raise $500k.

For instance, using the example above, if you need $500k over the next 12 months, raise $600k or so instead. Indeed, better be on the safe side in case things do not go as expected!

startup business financial plan

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The Complete Guide to Building a Startup Financial Plan from Scratch

1. the basics of financial planning, 2. building your startup financial plan, 3. key components of a startup financial plan, 4. how to make your startup financial plan work for you, 5. managing and adjusting your startup financial plan, 6. exit strategies for your startup financial plan, 7. common mistakes in creating a startup financial plan, 8. the benefits of having a solid startup financial plan.

financial planning is one of the most important aspects of starting a business. Without a solid plan in place, it can be difficult to make informed decisions about how to allocate resources and manage cash flow . A well-thought-out financial plan can help you navigate the early stages of business ownership and give you a roadmap for success.

There are a few key components that should be included in any startup financial plan . First, you'll need to create a sales forecast that outlines your expected revenue for the next 12 months . This will help you establish how much money you'll need to bring in to cover your expenses . Next, you'll need to create a budget that details your projected expenses for the same time period. This will help you keep track of your spending and make sure you're not overspending. Finally, you'll need to establish some financial goals. These can be short-term goals , like ensuring you have enough cash on hand to cover your operating expenses, or long-term goals , like saving for a down payment on a new office space.

creating a financial plan from scratch can seem daunting, but it doesn't have to be. By following these simple steps, you can put together a solid plan that will help you achieve your business goals .

A startup financial plan is a road map that will guide your business from its inception to profitability. While there is no one-size-fits-all approach to creating a financial plan, there are some key components that should be included in every plan.

The first step in creating a startup financial plan is to determine your businesss financial needs. This will involve estimating your startup costs, which include both one-time costs (such as equipment purchases) and ongoing costs (such as rent and employee salaries). You will also need to estimate your revenue and expenses for the first few years of operation.

Once you have a good understanding of your financial needs, you can begin to develop your funding strategy. This will involve identifying the sources of funding that are available to you and deciding how much money you need to raise. You may need to consider both debt and equity financing options.

Once you have a solid understanding of your financial needs and funding options, you can begin to develop your financial projections. Financial projections are an important part of any business plan, but they are especially important for startups. Your projections will give you a good idea of how much money you will need to raise, how quickly your business will grow, and when you can expect to achieve profitability .

While a startup financial plan is an important part of any business , it is not something that should be created in a vacuum. Rather, your financial plan should be developed in consultation with experienced business professionals , such as accountants and lawyers . These individuals can help you navigate the legal and tax implications of starting a business , and they can also provide valuable insights into developing a sound financial plan.

A comprehensive financial plan is a critical component of any startup business. Without a sound financial plan, it will be difficult to make informed decisions about how to allocate resources, manage risks, and grow the business.

There are four key components of a startup financial plan:

1. A sales forecast: This forecast projects future sales based on historical sales data and market trends .

2. A expense budget: This budget outlines all of the costs associated with running the business, including fixed costs (e.g., rent, insurance) and variable costs (e.g., raw materials , employee salaries).

3. A cash flow statement : This statement tracks inflows and outflows of cash, and is used to assess the business's liquidity (i.e., its ability to meet short-term obligations).

4. A profitability analysis: This analysis calculates the business's net profit margin , which is a key metric for assessing overall financial health.

The sales forecast is the foundation of the financial plan, as it drives all other projections. The expense budget and cash flow statement are closely interrelated, as expenses must be paid out of cash flow. The profitability analysis is important for two reasons: first, it provides a target for the business to strive for; and second, it can be used to assess the impact of different strategic decisions on profitability.

A well-crafted financial plan will give startup businesses a clear roadmap for achieving their financial goals.

Key Components of a Startup Financial Plan - The Complete Guide to Building a Startup Financial Plan from Scratch

You've started a business. Congratulations! You've taken the first step on a long and exciting journey.

Now it's time to start thinking about your startup's finances. A financial plan is a necessary component of any business , but it's especially important for startups. Your financial plan will help you track your progress, set goals, and make informed decisions about your business .

Here are a few tips to help you make your startup financial plan work for you:

1. Keep It Simple

Your financial plan doesn't need to be complicated. In fact, the simpler it is, the easier it will be to understand and use. Start by creating a basic income statement and balance sheet . You can find templates for these documents online or in accounting software programs.

2. Know Your Numbers

You can't manage what you don't measure. Make sure you understand your startup's key financial indicators , such as revenue, expenses, profit, cash flow, and burn rate. These numbers will give you a clear picture of your business's financial health and help you identify areas that need improvement .

3. Set Goals

What do you want your startup to achieve financially? Do you want to achieve profitability within a certain timeframe? Do you need to raise capital? Your financial plan should include specific, measurable goals so you can track your progress and make adjustments as needed.

4. Know Your Sources of Funding

Where will your startup get the money it needs to grow ? Will you self-fund or seek investment from venture capitalists ? Will you take out loans or lines of credit ? Each source of funding has its own terms and conditions that you'll need to be aware of.

5. Plan for the Worst

What would happen if your startup ran into financial trouble ? What if you couldn't make payroll or had to close your doors? It's important to have a contingency plan in place so you know what to do if things go wrong . This plan should include measures such as reducing expenses , increasing revenue, or raising additional capital .

making your startup financial plan work for you doesn't have to be difficult. Just keep it simple, know your numbers, set goals, and be prepared for the worst. By following these tips, you'll be on your way to financial success.

How to Make Your Startup Financial Plan Work For You - The Complete Guide to Building a Startup Financial Plan from Scratch

Every startup is different, so there is no one-size-fits-all answer to the question of how to manage and adjust your startup financial plan. However, there are some key considerations that all startups should keep in mind when it comes to their finances.

First and foremost, it is important to have a clear understanding of your startup's financial situation . This means having a clear picture of your income, expenses, and cash flow. It is also important to have a clear understanding of your startup's financial goals. What are you trying to achieve with your business? What are your short-term and long-term financial goals?

Once you have a clear understanding of your financial situation and goals, you can start to develop a plan for how to best manage your finances . There are a number of different ways to do this, but some common methods include creating a budget , setting up a system for tracking expenses , and setting up a system for invoicing and payments .

Another key consideration when it comes to managing your startup finances is to make sure that you are always seeking out new sources of funding. This could include seeking out investment from venture capitalists, applying for grants , or looking into crowdfunding platforms. It is also important to keep in mind that your financial needs will likely change as your startup grows and develops. As such, it is important to be prepared to adjust your financial plan as needed.

Finally, it is important to remember that managing your startup finances is an ongoing process. There is no one-time solution that will work for all startups . Instead, it is important to regularly review your finances and make changes as needed. By doing so, you can ensure that your startup remains on solid financial footing and is able to achieve its long-term goals.

'This will pass and it always does.' I consistently have to keep telling myself that because being an entrepreneur means that you go to those dark places a lot, and sometimes they're real. You're wondering if you can you make payroll. There is a deadline, and you haven't slept in a while. It's real. Majora Carter

If you're like most startup founders, you're probably not thinking about how your business will end. You're focused on building something great, and you're hoping that your company will be around for a long time.

But it's important to have an exit strategy in mind from the start. Your exit strategy will determine how you raise money, how you structure your business , and ultimately, how much money you make.

There are four main exit strategies for startups :

1. Sell to a larger company

2. Go public

3. Sell to a private equity firm

4. Shut down

Each of these exit strategies has its own pros and cons . The one that's right for your business will depend on your specific circumstances.

One common exit strategy for startups is to sell to a larger company. This can be an attractive option because it allows you to cash out quickly and for a potentially high price .

The downside is that you may not have much control over what happens to your business after the sale. The new owners may decide to shut down your product or change the direction of the company entirely.

Another option is to take your company public. This can be a great way to raise a lot of money and give yourself and your employees liquidity. It can also be a good way to keep control of your company .

The downside of going public is that it's a lot of work and it can be expensive. You'll also be subject to more regulations than you are as a private company .

A third option is to sell your company to a private equity firm. This can be attractive because you'll get a lump sum of cash up front and you won't have to deal with the hassle and expense of going public.

The downside is that the private equity firm will likely want to make changes to your business in order to make it more profitable. They may also bring in a new management team that you don't have control over.

Finally, you may decide to simply shut down your business if it's not working out. This is not necessarily a bad thing; it may be the best thing for your employees and shareholders if the business is not successful.

The downside of shutting down is that you will not make any money from the sale of the business . But if you've run out of ideas or if the market has changed, it may be the best thing for everyone involved.

No matter what exit strategy you choose , it's important to have a plan in place from the beginning. That way, you can make the best decision for your business when the time comes.

Exit Strategies for Your Startup Financial Plan - The Complete Guide to Building a Startup Financial Plan from Scratch

One of the most common mistakes startup founders make when creating their financial plan is failing to account for all the costs associated with launching and growing their business . A complete financial plan should include not only the costs of goods and services , but also the costs of marketing , advertising, and overhead.

Another common mistake is failing to account for the impact of inflation on future costs. Inflation can have a significant impact on the cost of goods and services, as well as the cost of labor. In order to ensure that your financial plan is accurate, it is important to account for the impact of inflation in your projections.

Another common mistake is failing to account for the fact that most businesses do not generate revenue immediately. It can take months, or even years, for a business to generate enough revenue to cover its costs. For this reason, it is important to have a realistic timeline for generating revenue in your financial plan.

Finally, another common mistake is failing to account for the fact that businesses often need to raise additional capital as they grow. As your business grows, you may need to invest in new equipment, hire additional staff, or expand into new markets. In order to account for this possibility, you should include a section in your financial plan that outlines how you will raise additional capital .

By avoiding these common mistakes, you can ensure that your startup financial plan is accurate and complete.

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When it comes to starting a business, one of the most important things you can do is create a solid financial plan . This document will outline your businesss income, expenses, and profitability. It will also help you secure funding from investors and lenders.

A well-thought-out financial plan will give your business a road map to success . It will help you make sound financial decisions and keep your business on track .

Here are some of the benefits of having a solid financial plan for your startup :

1. It will help you secure funding.

If you're looking for funding from investors or lenders, a detailed financial plan is a must. This document will give them a clear picture of your businesss finances and how you plan to use their money .

2. It will keep you organized.

A financial plan will help you keep track of your income and expenses . This information is critical for making sound financial decisions and keeping your business on track.

3. It will help you find areas of improvement .

By tracking your income and expenses, you'll be able to identify areas where your business could be more efficient . This information can help you make changes that will improve your bottom line .

4. It will help you set goals.

Your financial plan can help you set realistic goals for your business. This information can guide you as you make decisions about how to grow your company .

5. It will give you peace of mind.

Having a financial plan in place will give you peace of mind knowing that your business is on solid financial footing. This document can help you weather any storms that come your way.

Creating a financial plan may seem like a daunting task, but its well worth the effort . These documents are critical for the success of any startup business .

The Benefits of Having a Solid Startup Financial Plan - The Complete Guide to Building a Startup Financial Plan from Scratch

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Startup financial models - 12 templates compared

Posted by Stéphane Nasser | April 20, 2020

startup business financial plan

As a founder, there comes a time when you need a business plan, complete with financial forecasts, income statements, and fancy graphs that will impress your investors.

Don't build it from scratch - use an existing model.

A financial model allows you to draft financial projections easily, fast, and in a professional manner. A great template will also force you to think through all the aspects of your project and make sure you really get the financial logic behind your business.

It can be annoying but trust me, it's worth your time.

This post compares the top 12 templates of financial models for SaaS startups. I have personally tested each model. I have ranked them on 40+ items along 5 categories. I've looked at both spreadsheets and SaaS apps, and both free and paid solutions.

If you are looking at building your SaaS financials, this article is for you.

Table of Contents

Methodology - what makes a great financial model for saas startups.

Here is the methodology I used to build this benchmark.

I compared 40 points across 5 categories: (a) financial statements, (b) analysis capabilities, (c) revenue modeling, (d) cost modeling, (e) extra features. A detailed analysis of each model is available below. In each case, I tested the software/spreadsheet myself.

Criteria 1: Financial statements

  • Time scale : Are the statements over 1 year, 3 years or more? You usually want 3 years as a minimum when you speak with professional investors.
  • Income statement : Does the template include an income statement? You usually want a monthly income statement, at least for year 1.
  • Cash flow statement : Same as income statement
  • Balance sheet : Same as income statement
  • GAAP/IFRS : Are the statements compliant with GAAP and/or IFRS rules?
  • Currency : How many currencies are available?

Criteria 2: Analysis capabilities

  • Financial analysis : Number of typical financial metrics included e.g. breakeven point, quick ratio, average inventory, etc.
  • SaaS analysis : Number of typical SaaS metrics included e.g. MRR growth, SaaS magic number, CAC/LTV, etc.
  • Graphs : Number of built-in graphs
  • Costs by P&L category : Does the template break down costs into P&L categories (CoGS, RD, G&A, etc.)
  • Costs by departments : Does the model break down costs into departments (sales, marketing, CS, engineering, etc)
  • VS Scenarios : Does the template allow you to compare multiple scenarios?
  • VS Industry comparables : Does the template compare your financials against industry comparables?
  • VS Actuals : Does the template allow you to run your model versus your actual numbers?

Criteria 3: Revenue modeling

  • New client acquisition : How do you enter new clients into the model? Possibilities include: entering a number manually for each month or year (it sucks); autofill the model from a base number and a growth rate (sucks a bit less); autofill several streams - each stream represents a different type of client e.g SMB/enterprise (better); or even fully model each acquisition channel (the best, very rare)
  • Offerings : How many offers can you define and how precisely can you model them? This includes the possibility to create one-off offers, recurring offers, or a combo, but also the possibility to create introduction times and end times for specific offers.
  • Pricing model : How many pricing models can you define and how precisely: tiers (free, basic, premium), revenue models (per seat, per usage, etc), automatically increase or decrease the plans price over years.
  • Existing clients : Can you model expansion, contraction, churn, reactivation?
  • Commitment : Can you model monthly VS yearly VS multi-annual contracts?
  • Service revenue : Can you model punctual service revenue on top of all the other pricing models and offerings?
  • Enterprise specific : Does the template offer specific features to model complex enterprise sales, such as landing/expansion, custom product developments, various sales cycles, etc?

Criteria 4: Costs modeling

  • Direct labor costs : The best templates allow you to correlate direct labor costs with relevant metrics. For example, your sales staff is calculated based on forecasted income and sales target per account executive. Same for customer success payroll with number of customers and workload target per CS staff.
  • Direct non-labor costs : just like with labor costs, the best templates allow you to link some direct non-labor costs with relevant metrics. For instance, server costs can be a % of MRR.
  • Indirect labor costs : same as above. Even for indirect costs, some templates find smart ways to tie them to some aspect of the business.
  • Indirect non-labor costs : same as above
  • Payment terms : Can you define the payments terms with your vendors and suppliers? May be useful if there is a hardware component to your offer.
  • Hardware-friendly : This is a special mention for templates that model things like shipping costs, inventory delay, etc.

Criteria 5: Extra features

  • Documentation : Is there proper documentation in the model and on the website? Are there good explainer videos? What kind of direct support (chat, email) comes with the template?
  • Languages : In what language is the template available?
  • Third-party integration : Third-party integrations can be useful to input or update data over time, or to display advanced graphs.
  • Excel spreadsheet : Can you access your financials as a Microsoft Excel spreadsheet? This is a must if you need to share it with investors.
  • Google Sheets : Does the model work in Google Sheets? Not all models that work in Microsoft Excel work in Google, so you may want to consider that point.
  • Editable formulas : Some templates do not allow you to modify formulas - which is a massive bummer when it comes to customization.

Granted, it's not a perfect methodology. One could argue forever about whether cap tables should be included in a startup financial model. But it's the best I could come up with - without being a finance nerd myself :)

Disclaimers: affiliation, impartiality, and non-finito

Before jumping to the heart of the matter, please allow me three disclaimers:

  • Affiliation: Some links in the article are affiliated - which means that if you end up buying a template through one of those links, OpenVC will get a few $$$. It doesn't cost you anything, and it allows us to keep writing useful articles for you.
  • Impartiality: Regardless of whether there is a referral in place or not, I am committed to providing you with an honest opinion. We take great pride in being an independent, honest, and trusted source of information for entrepreneurs.
  • Non finito: This is a non-finite work. We are happy to update the article if you bring new, relevant information to our knowledge. We are also happy to fix any mistake or clarify any confusion that you may find in the article.

1. "FISY Innovation Plan" by Remi Berthier

Fisy Innovation Plan, by Rémi Berthier

For years, this template has been the go-to financial model for French entrepreneurs. However, it didn't age that well.

Analysis capabilities are limited: only a handful of financial metrics, zero SaaS metrics, a couple of graphs, and it's impossible to categorize costs. Modeling, be it for revenue or costs, is all too basic and requires a lot of manual input. Also, it's entirely in French.

Having said that, it remains a free-of-charge, easy-to-use, easy-to-customize template that covers all the basics while including specificities to the French ecosystem such as CIR, JEI, etc. It also offers a detailed page of instructions on the website.

This model makes a lot of sense for French entrepreneurs looking for a simple solution. For the others, keep on reading.

Edit 2023: I've re-downloaded the template in 2023 and didn't notice any significant change versus the 2017 version I had initially reviewed, so I kept my review untouched.

Fisy income statement

2. "SaaS Financial Plan 2.0" by Christoph Janz

SaaS Financial Plan 2.0, by Christoph Janz

This template was built by SaaS apostle Christoph Janz, and you can tell. It packs a punch of SaaS knowledge in a sleek, clear spreadsheet. You'll find lots of good stuff: basic/pro/enterprise plans, churn/upgrade/downgrade, an elegant client acquisition model and a wealth of graphs and charts.

It's not all rosy, though. You want a 5 years forecast? No, you only need 2. You want to sell annual pro plans? Too bad, pro plans are monthly and that's that. Also, no balance sheet.

This template works great if you are a typical SaaS startup and fits the vision that Christoph put into his financial plan. If not, you may be better off considering templates with broader horizons.

Edit 2023: Based on the Dropbox information, the template has not been modified since my first review in 2017, so I kept it untouched.

SaaS financial plan by Christoph Janz

3. "SaaS Financial Model 3.0" by Baremetrics

SaaS Financial Model 3.0, by Baremetrics

I reviewed this model for the first time in 2017, when Jaakko Piiponen was its sole author. Since then, the Baremetrics team has substantially updated it. This new 2023 review should finally do it justice.

This SaaS Financial Model 3.0 is geared towards people who want to pilot their SaaS business, as opposed to just raising funds. Its underlying philosophy is that you need to match actual numbers with your forecasts for maximum piloting accuracy. To reach that objective, this model wants you to frequently pull data from your accounting software (e.g. Quickbooks, Xero…) and will project many assumptions based on your last 3 months - what they call "Autopilot". It's a healthy approach, and if you're ok with the extra work, it may be the right one for you.

When it comes to financial statements, this model nails it: you get a monthly view of your P&L, cash flow, and balance sheet over 5 years. However, because this model is not designed for fundraising, it doesn't include a cap table, which may be a dealbreaker to some. The whole model is in USD - you can manually change to any other currency, but you'll have to click a lot….

The Baremetrics team has also beefed up the analysis capabilities. This new version packs up all the must-have financial and SaaS metrics (Churn, ARPC, LTV, Paid CAC, Blended CAC, CAC:Payback time, CAC:LTV, MRR Breakdown), plus 11 built-in charts. A very nice attention is the Chartbuilding tab, which groups all the numbers in a clean format so you can build additional custom charts effortlessly. Like Janz's and Murray's models, you can break down expenses by category (engineering, marketing, etc.). The icing on the cake: this SaaS financial Model 3.0 is the only free model of this benchmark that lets you build a "worst case scenario" on top of your base case - and of course, compare both scenarios to your Actuals. Kudos to that!

Revenue modeling and cost modeling follow the "Autopilot" philosophy described above, with a few notable twists. For instance, the Acquisition model can be augmented with a separate "Marketing funnel" sheet (also provided by Baremetrics, also free) that models a proper 7 step funnel (visitor, signups, MQL, SQL, opportunities, trial, customer) and distinguishes between paid and organic leads. Your CMO will love it. Similarly, each expense line can be tied to specific variables to reflect dependencies.

All in all, this model by Baremetrics is a very strong contender. The only weakness I found relates to modeling complex offers, such as a Basic, a Premium and a Pro plan. It's just not possible. Even modeling annual plans seems to take a bit of work using the "Deferred revenue" tab. On the upside, this SaaS Financial Model 3.0 models expansion, contraction, churn, and even reactivation, so it's a tit for tat.

If you're looking for a free model that cares about accuracy to pilot your SaaS business the year round, and you don't mind getting your hands dirty a bit, then this is the one. Support is limited to a well-written, opinionated page of instructions, and you can contact the creators on Twitter. The model is available on Excel and Google Sheets, and all the formulas are editable.

SaaS P&L and metrics by Piipponen

4. "Standard SaaS Financial Plan for Startups and SMBs" by Ben Murray

SaaS Financial Plan for Startups and SMBs, by Ben Murray

This template published by Ben Murray, AKA the SaaS CFO, has a lot in common with Chris Janz's model: it's free, it's SaaS-centric and it's really good overall.

But that's where similarities stop. Let's look at what differentiates them:

  • Cost modeling: Janz does a much better job as many costs are tied to activity metrics. With Murray, you have to fill it all manually. Janz 1 - 0 Murray
  • Commitment: Murray allows you to define which plans are annual and which are monthly. Janz does not. Janz 1 - 1 Murray
  • Client acquisition: Murray wants you to manually input new clients each month, where Janz includes 3 acquisition channels. Janz 2 - 1 Murray
  • Murray also allows you to add service revenue and offers up to 5 years of forecasts. Janz 2 - 2 Murray
  • Since its latest update, Murray's model also allows you to input your actual number and compare them with your forecasts. Janz 2 - 3 Murray

At the end of the day, Murray's SaaS template is great - maybe the best amongst the free templates. It is a bit disappointing when it comes to modeling new client acquisition and costs, though.

To explore more powerful (and paid) templates, read on!

growth model by the SaaS CFO

5. "SaaS Startup" by Pro Forma

SaaS Startup Kit, by Pro Forma

The SaaS startup kit is the first paying template we're looking at: one-time $99.

Because you're paying, you obviously get a lot more in return: balance sheet, cap table, GAAP/IFRS compliance, 161 currencies to choose from, a ton of financial metrics and graphs, and advanced capabilities to model your costs and your revenue, including for hardware startups.

Now, because we are paying, we are a lot pickier. And I see 3 problems with this SaaS Startup Kit. First, you cannot account for upgrades and downgrades (you can model churn, though). Second, you cannot break down costs by P&L categories or departments. Third, the formulas are "locked ' so you cannot edit them. That's a big problem if, like me, you like looking under the hood. But maybe you don't care?

SaaS model by Pro Forma

All in all, I cannot tell you not to look at the SaaS startup kit. It has a lot going for it, and at $99, it's priced right. But if you can stretch your budget a little more, look at the next model - it may be the right one for you.

6. "SaaS Financial Model" by Taylor Davidson

"SaaS Financial Model" by Taylor Davidson

Let me start right off the bat: this "SaaS Financial Model" by Taylor Davidson is one of the best templates out there.

For $149, you get all the financial statements you may wish for, laid out over 5 years, and GAAP-compliant. Additional tabs are built-in for fundraising (assess needs and uses), valuation (ownership, DCF, waterfall exit, ROI), variants (simplified scenarios), and impact (for purpose-driven startups). Bonus point: the model works in Microsoft Excel and Google Sheets, supports all currencies, and is fully editable.

In terms of analysis capabilities, the template generates boatloads of financial and SaaS metrics, as well as 20+ beautiful graphs. Costs can be broken down by departments and P&L categories so you can make sense of all that good stuff. SaaS experts will especially appreciate the granularity provided by monthly cohort analysis - a rarity!

Modeling revenue and costs is extremely versatile. Instead of pre-modeling everything for you, the template provides you with very unique features (Pricing, Pipeline, Drivers) that allow you to customize it to your needs. Here are a few examples of what you can do:

  • You can build as many subscription plans as you want.
  • Contract length is not limited to monthly or annual but can be anything you want.
  • Billings are separate from contract cycles, so can do an annual contract with quarterly billings, or 3-year contract with annual billings, or annual contract with monthly billings
  • All costs, direct and indirect, labor and non-labor, can be tied to relevant activity metrics (revenue, headcount, etc.) which is what you would expect from this kind of template.
  • All costs can also be tied that are *not* tied to an activity metric, say periodic costs that occur quarterly or annually, or costs that increase a % over time, or costs that are a % of salaries, or a % of revenues, for example. This is all built-in within the Drivers sheet and an absolute delight to use.
  • For Enterprise sales, you can model a good old Pipeline in the Pipeline sheet and attribute different numbers of seats and "likelihood to close" to each deal.

True, it takes a bit of time to wrap your head around the internal logic of that model. But once you master it, there is virtually no limit to what you can do.

Thankfully, this financial model is well-documented. The website includes a long, detailed "Getting Started" page as well as specific articles and videos for technical points. The highlight is definitely the email support - I've consistently received detailed replies within 24 hours - at zero extra cost. Kudos to that.

Long story short - if you are willing to shell out $149 for a SaaS financial model, Taylor Davidon's template is arguably one of the absolute best you can get your hands on. The other one is the model built by Alexander Jarvis - read on to learn about it.

financial model by Taylor Davidson

7. "SaaS: SME & Users" by Alexander Jarvis

8. "saas: enterprise, sme & users" by alexander jarvis.

"SaaS: SME & Users" by Alexander Jarvis

"SaaS: Enterprise, SME & Users" by Alexander Jarvis

It's hard to write a serious review about this template - everything about it is absolutely ridiculous. It is ridiculously rich, ridiculously detailed, ridiculously powerful. It's the kind of template that you use when you want to make a statement, like impress your investors or make your CFO feel irrelevant. It's heavy, bold, and over-the-top, in the best way possible. Brace yourselves, let's dive in.

This template by Alexander Jarvis comes in 2 versions. The "SaaS: SME & Users" is perfectly fine for most SaaS businesses. It sells at $319. The "SaaS: Enterprise, SME & Users" retails at $1,299 and includes extra logic to model enterprise sales. Because of their complexity, both models only work in Microsoft Excel (no Google Sheets).

In return for your money, you get the most advanced modeling capabilities - period.

  • Each acquisition channel is modeled in great details: paid, organic, blog, social, emailing, and channel partners. Each channel can be assigned its own conversion rate from visitor to user. You can also differentiate between the customers that self-onboard and those who require sales intervention.
  • You can design composite offerings based on usage fee, monthly fee and/or a one-time service fee. The templates allow 3 paid plans - typically basic, premium, pro - as well as a free trial plan, and each of these plans can exist with a monthly or annual commitment.
  • Customers can upgrade, downgrade or churn, and you can even schedule module releases at different points in time, so you create new revenue streams over the years.
  • All costs, direct and indirect, labor and non-labor, are modeled in a clever way i.e. they are tied to relevant activity metrics

I cannot stress enough how detailed this model is. Here is an example: the "email marketing" tab (yes, there is such a thing) takes into account 12+ inputs including stuff like the % of recipients who will share the newsletter with their friends. I love this kind of detail because it gives actionable points when thinking about execution. It also makes it easier to defend your numbers in front of investors because you can explain the underlying assumptions. If it's too much for you, you can always deactivate the advanced fields with the switch and focus on the core input.

If you buy the $1,299 version, you get an extra slew of tabs specifically dedicated to enterprise sales in all its complexity: enterprise-specific products and offerings, geographies, sales cycles, "land and expand", custom development, etc. If you are building the next Oracle or Palantir, that stuff alone is invaluable.

Documentation is ok. Instructions and comments are included inside the template, but not much in terms of FAQ/articles on the website. Having said that, I particularly appreciated the tutorial videos: one 28-min overview and 20 shorter videos that each cover a specific tab.

You want more? Time to talk about analysis capabilities. Alexander Jarvis' model is most lavish when it comes to that point. 50+ graphs are readily available - and that's without counting the sparklines that are peppered throughout the sheet. Because modeling is so detailed, the template can provide advanced SaaS metrics such as marketing leverage or expansion % of new MRR. Of course, costs can be allocated to P&L categories and departments so you really understand what's going on in your model.

When it comes to financial statements, the $319 version gives you only 3 years of forecasts, with no balance sheet and no cap table. The $1,299 version does a bit better with 5-year forecasts, but still no sign of balance sheet nor cap table. Some would argue that an early-stage startup doesn't need formal financial statements... However, this template does include a tab to compare your forecasts to your actuals, and another tab listing down industry metrics - both are very welcome additions.

If you want the best spreadsheet ever, it boils down to comparing Taylor Davidson's and Alexander Jarvis' templates, and picking the one that fits you the most. See the final section "Conclusion" for a side-by-side of both models.

SaaS forecasts by Alexander Jarvis

However, some prefer using a specialized SaaS app to build their startup financial model. If that's your case, check out the last 4 models.

9. "EY Finance Navigator" by Alex and Wout

EY Finance Navigator, by Alex and Wout

The Finance Navigator was developed by Alexander Matthiessen and Wout Bobbink from EY's Dutch office. It's a SaaS app: you pay a monthly subscription to access an online tool. It's a fundamentally different approach from the spreadsheet-based models we've explored so far.

The Finance Navigator costs $30 per month without commitment or $380 over an 18 month period. For that price, you get very exhaustive financial statements: income statements, cash flow statements, and balance sheets over 10 years - no cap table though. All currencies are available and you can export the statements to a clean, well-designed spreadsheet format (only numbers, no formulas).

Documentation is good, with in-app guidance, website posts, a Q&A, and a 37 min walkthrough video. The tool was clearly thought to be user-friendly and the onboarding is best-in-class. You will have zero difficulties using EY's Finance Navigator whatsoever.

Unfortunately, simplicity is a double-edged sword. Revenue and cost modeling is super basic. For example, revenue is defined as a base number for month 1, then a monthly growth rate. No channels, no conversion rate, no pricing plans. The same goes for costs: you cannot tie costs to specific activity metrics, so you have to input them manually. Because it's a SaaS application, you cannot customize the model by adding fields or modifying formulas. And because it's so basic, there is only the bare minimum in terms of analysis capabilities.

At the end of the day, EY's Finance Navigator holds a lot of promises. UX is great and they have a couple of nice features like comparables and scenarios. The product has evolved over the years, adding up features and getting more usable. In my estimation, it's not quite enough to be used by advanced SaaS entrepreneurs. The product is geared towards traditional businesses - think bakery, restaurant, consulting, who just want clean and easy financials. Not the right pick for SaaS people - yet. I'd love to revisit the tool in a year and see what progress has been made.

income statement by EY

10. "Liveplan" by Palo Alto Software

Liveplan, by Palo Alto Software

Liveplan sells its financial modeling SaaS app at $20 per month ($360 over 18 months), which makes it a close competitor to EY Finance Navigator.

Starting with the strong points, Liveplan offers exhaustive statements over 5 years: income statements, cash flow statements, and balance sheets. Compared with EY's model, you have a bit more control over revenue modeling: offerings can be defined as recurring fees, billable hours, and a one-time upfront fee can also be added. Pricing can be increased automatically over time, churn can be factored in, and you can model monthly or annual plans.

When looking at cost modeling, you can adjust payment terms for clients and suppliers. There are also specific variables for hardware products. Documentation is just fine, with a tutorial video per section embedded directly in the app, as well as plenty of instructions. Liveplan exists in 5 languages, and integrates with Quickbooks, which allows importing your actual numbers and comparing them with your forecasts. You can also export your financials into a (numbers-only) spreadsheet to share with your investors.

Now, although Liveplan's software has more powerful modeling capacities than EY's, it remains insufficient in my estimation. Here are just a few examples.

  • Direct labor costs can be set as a % of revenue, but do not update the number of employees accordingly.
  • Indirect costs can only be set as a constant, a % of overall revenue, or a % of a specific revenue.
  • New client acquisition is just manual input - as in you manually input "2" clients in March and "4" clients in April. There is no channel modeling whatsoever.
  • Costs cannot be broken down by P&L categories nor departments.

When modeling is too superficial, it translates into poor analysis capabilities. In Liveplan's case, you do have a dozen financial metrics available (net cash flow, account payable, cash on hand…) and another dozen graphs. But SaaS metrics are absent, which is a bummer for SaaS entrepreneurs.

At the end of the day, LivePlan was built for non-tech entrepreneurs. Perfect for a bike shop owner, but not quite there for SaaS people.

Don't take my word for it: there is a 60-day trial, so give it a spin for free and make up your own mind.

revenue by Liveplan

11. "Summit" by Matt Wensing

Summit, by Matt Wensing

Summit is a young startup (founded 2019) that brings a fresh take on the whole financial modeling thing with a SaaS solution.

Let's make it clear - Summit is not meant for fundraising. Forecasts on Summit are made for an 18-month period only. Costs cannot be allocated to P&L categories and departments, nor can you differentiate between labor/non-labor or direct/indirect costs. Therefore, you won't be able to generate any financial statements that your investors may require . Hell, you can't even export a spreadsheet!

So why talk about Summit? Because Summit is pretty awesome when it comes to piloting your SaaS startup with a financial model. Here is how it works. First you connect your live metrics (Stripe, Baremetrics, etc.) to your Summit account. This allows Summit to derive your future growth from the current trends. The next step consists in optimizing that future growth. To do that, you define a baseline scenario around 20+ metrics from sales, product, finance, then you play around with those variables to maximize your MRR or any other metric you like. What if we increase our close rate? What if we raise funds and funnel that money into paid ads? You instantly get clear answers. What's more, the clean dashboards and convenient built-in comments feature makes it easy and even pleasant to run those analyses and share with your team. It's a really fresh experience - no comparison possible with fuddy-duddy spreadsheets.

Summit is still a young product and there is room for improvement: currencies, tax rates, expansion and contraction of existing clients, one-off revenue. In particular, client acquisition would greatly benefit from more granularity and native integrations with social media accounts for instance.

At the end of the day, Summit is not meant to build financial statements, but to make decisions in a data-driven way. It's such a refreshing approach in the space that I highly recommend trying it out. Bonus point: it's 100% free for now, so it's a no-brainer.

forecasts by Summit

12. "Causal" by Taimur and Lukas

Causal, by Taimur and Lukas

At first glance, Causal seemed very similar to Summit. It's also a SaaS solution, also founded in 2019, also bringing a new approach to modeling. But that's where the comparison stops because the philosophy behind Causal is quite unique.

Causal is not just a financial modeling tool for SaaS startups. It's a modeling tool that aims at replacing Excel for every modeling need you may have. This means that (a) Causal is super versatile and goes much deeper than Summit, and (b) Causal is much more complex with a steeper learning curve than Summit.

Looking at revenue and cost modeling, you can model anything you want on Causal with an interface that's 10x more modern and user-friendly than a spreadsheet. The same thing goes for analysis capabilities: you can generate dashboards, tables, and graphs for absolutely anything - including any financial statement your investors may want. You can also connect live data sources (Stripe and Google Sheets for now, more to come) to automatically update your models with real-time metrics.

As a SaaS entrepreneur, you don't have time to build a model from scratch. Lucky you, Causal has built-in templates - including two SaaS models built by Taylor Davidson himself (see template #6). You are then able to augment or fine-tune those models to suit your specific needs.

In terms of documentation, there are a few videos, a live chat as well as a walkthrough when you start a new model. That's not much, but Causal assumes that you are a modeling "nerd" and that your usual work environment is massive spreadsheets. If that's the case, you'll be just fine. Assuming you have the time and desire to put in the hours to learn a new tool, Causal may very well be the ultimate platform for financial modeling.

SaaS model by Causal

New models - reviews coming soon

"financial model template for startups" by basetemplates.

Financial Model Template, by BaseTemplates

Conclusion: this is the best financial model for SaaS startups

startup financial model benchmark

Best free spreadsheet

If you want a "good enough" model but are not willing to pay for it, go for Ben Murray's (model #4) or Chris Janz's (model #2) . Customize them a bit to offset their weaknesses.

See below a side-by-side comparison of the differences between both models.

best free financial spreadsheet for SaaS

Best paid spreadsheet

If you want the best financial model spreadsheet out there and are willing to pay for it, go for Taylor Davidson's (model #6) or Alexander Jarvis' (models #7/#8) . They are by far the best stuff on the market today.

See below a side-by-side comparison of the differences.

best paid financial spreadsheet for SaaS

Best software

If you want to experience the future of financial modeling, go for Summit (model #11) or Causal (model #12) - while keeping in mind that both are very different.

best app for financial modelling

Thanks for reading. Don't hesitate to leave a question in the comments, I try to reply personally to each one of them.

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How to Develop a Small Business Financial Plan

By Andy Marker | April 29, 2022

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Financial planning is critical for any successful small business, but the process can be complicated. To help you get started, we’ve created a step-by-step guide and rounded up top tips from experts.

Included on this page, you’ll find what to include in a financial plan , steps to develop one , and a downloadable starter kit .

What Is a Small Business Financial Plan?

A small business financial plan is an outline of the financial status of your business, including income statements, balance sheets, and cash flow information. A financial plan can help guide a small business toward sustainable growth.

Craig Hewitt

Financial plans can aid in business goal setting and metrics tracking, as well as provide proof of profitable ideas. Craig Hewitt, Founder of Castos , shares that “creating a financial plan will show you if your business ideas are sustainable. A financial plan will show you where your business stands and help you make better decisions about resource allocation. It will also help you plan growth, survive cash flow shortages, and pitch to investors.”

Why Is It Important for a Small Business to Have a Financial Plan?

All small businesses should create a financial plan. This allows you to assess your business’s financial needs, recognize areas of opportunity, and project your growth over time. A strong financial plan is also a bonus for potential investors.

Mark Daoust

Mark Daoust , the President and CEO of Quiet Light Brokerage, Inc., explains why a financial plan is important for small businesses: “It can sometimes be difficult for business owners to evaluate their own progress, especially when starting a new company. A financial plan can be helpful in showing increased revenues, cash flow growth, and overall profit in quantifiable data. It's very encouraging for small business owners who are often working long hours and dealing with so many stressful decisions to know that they are on the right track.”

To learn more about other important considerations for a small business, peruse our list of free startup plan, budget, and cost templates .

What Does a Small Business Financial Plan Include?

All small businesses should include an income statement, a balance sheet, and a cash flow statement in their financial plan. You may also include other documents, such as personnel plans, break-even points, and sales forecasts, depending on the business and industry.

Ahmet Yuzbasioglu

  • Balance Sheet: A balance sheet determines the difference between your liabilities and assets to determine your equity. “A balance sheet is a snapshot of a business’s financial position at a particular moment in time,” says Yüzbaşıoğlu. “It adds up everything your business owns and subtracts all debts — the difference reflects the net worth of the business, also referred to as equity .” Yüzbaşıoğlu explains that this statement consists of three parts: assets, liabilities, and equity. “Assets include your money in the bank, accounts receivable, inventories, and more. Liabilities can include your accounts payables, credit card balances, and loan repayments, for example. Equity for most small businesses is just the owner’s equity, but it could also include investors’ shares, retained earnings, or stock proceeds,” he says.
  • Cash Flow Statement: A cash flow statement shows where the money is coming from and where it is going. For existing businesses, this will include bank statements that list deposits and expenditures. A new business may not have much cash flow information, but it can include all startup costs and funding sources. “A cash flow statement shows how much cash is generated and used during a given period of time. It documents all the money flowing in and out of your business,” explains Yüzbaşıoğlu.
  • Break-Even Analysis: A break-even analysis is a projection of how long it will take you to recoup your investments, such as expenses from startup costs or ongoing projects. In order to perform this analysis, Yüzbaşıoğlu explains, “You need to know the difference between fixed costs and variable costs. Fixed costs are the expenses that stay the same, regardless of how much you sell or don't sell. For example, expenses such as rent, wages, and accounting fees are typically fixed. Variable costs are the expenses that change in accordance with production or sales volume. “In other words, [a break-even analysis] determines the units of products or services you need to sell at least to cover your production costs. Generally, to calculate the break-even point in business, divide fixed costs by the gross profit margin. This produces a dollar figure that a company needs to break even,” Yüzbaşıoğlu shares.
  • Personnel Plan: A personnel plan is an outline of various positions or departments that states what they do, why they are necessary, and how much they cost. This document is generally more useful for large businesses, or those that find themselves spending a large percentage of their budget on labor.
  • Sales Forecast: A sales forecast can help determine how many sales and how much money you expect to make in a given time period. To learn more about various methods of predicting these figures, check out our guide to sales forecasting .

How to Write a Small Business Financial Plan

Writing a financial plan begins with collecting financial information from your small business. Create income statements, balance sheets, and cash flow statements, and any other documents you need using that information. Then share those documents with relevant stakeholders.

“Creating a financial plan is key to any business and essential for success: It provides protection and an opportunity to grow,” says Yüzbaşıoğlu. “You can use [the financial plan] to make better-informed decisions about things like resource allocation on future projects and to help shape the success of your company.”

1. Create a Plan

Create a strategic business plan that includes your business strategy and goals, and define their financial impact. Your financial plan will inform decisions for every aspect of your business, so it is important to know what is important and what is at stake.

2. Gather Financial Information

Collect all of the available financial information about your business. Organize bank statements, loan information, sales numbers, inventory costs, payroll information, and any other income and expenses your business has incurred. If you have not already started to do so, regularly record all of this information and store it in an easily accessible place.

3. Create an Income Statement

Your income statement should display revenue, expenses, and profit for a given time period. Your revenue minus your expenses equals your profit or loss. Many businesses create a new statement yearly or quarterly, but small businesses with less cash flow may benefit from creating statements for shorter time frames.

Income Statement

4. Create a Balance Sheet

Your balance sheet is a snapshot of your business’s financial status at a particular moment in time. You should update it on the same schedule as your income statement. To determine your equity, calculate all of your assets minus your liabilities.

Balance Sheet

5. Create a Cash Flow Statement

As mentioned above, the cash flow statement shows all past and projected cash flow for your business. “Your cash flow statement needs to cover three sections: operating activities, investing activities, and financing activities,” suggests Hewitt. “Operating activities are the movement of cash from the sale or purchase of goods or services. Investing activities are the sale or purchase of long-term assets. Financing activities are transactions with creditors and investments.”

Cash Flow

6. Create Other Documents as Needed

Depending on the age, size, and industry of your business, you may find it useful to include these other documents in your financial plan as well.

Breakeven Point

  • Sales Forecast: Your sales forecast should reference sales numbers from your past to estimate sales numbers for your future. Sales forecasts may be more useful for established companies with historical numbers to compare to, but small businesses can use forecasts to set goals and break records month over month. “To make future financial projections, start with a sales forecast,” says Yüzbaşıoğlu. “Project your sales over the course of 12 months. After projecting sales, calculate your cost of sales (also called cost of goods or direct costs). This will let you calculate gross margin. Gross margin is sales less the cost of sales, and it's a useful number for comparing with different standard industry ratios.”

7. Save the Plan for Reference and Share as Needed

The most important part of a financial plan is sharing it with stakeholders. You can also use much of the same information in your financial plan to create a budget for your small business.

Janet Patterson

Additionally, be sure to conduct regular reviews, as things will inevitably change. “My best tip for small businesses when creating a financial plan is to schedule reviews. Once you have your plan in place, it is essential that you review it often and compare how well the strategy fits with the actual monthly expenses. This will help you adjust your plan accordingly and prepare for the year ahead,” suggests Janet Patterson, Loan and Finance Expert at  Highway Title Loans.

Small Business Financial Plan Example

Small Business Financial Plan Dashboard Template

Download Small Business Financial Plan Example Microsoft Excel | Google Sheets

Here is an example of what a completed small business financial plan dashboard might look like. Once you have completed your income statement, balance sheet, and cash flow statements, use a template to create visual graphs to display the information to make it easier to read and share. In this example, this small business plots its income and cash flow statements quarterly, but you may find it valuable to update yours more often.

Small Business Financial Plan Starter Kit

Download Small Business Financial Plan Starter Kit

We’ve created this small business financial plan starter kit to help you get organized and complete your financial plan. In this kit, you will find a fully customizable income statement template, a balance sheet template, a cash flow statement template, and a dashboard template to display results. We have also included templates for break-even analysis, a personnel plan, and sales forecasts to meet your ongoing financial planning needs.

Small Business Income Statement Template 

Small Business Income Statement Template

Download Small Business Income Statement Template Microsoft Excel | Google Sheets

Use this small business income statement template to input your income information and track your growth over time. This template is filled to track by the year, but you can also track by months or quarters. The template is fully customizable to suit your business needs.

Small Business Balance Sheet Template 

Small Business Balance Sheet Template

Download Small Business Balance Sheet Template Microsoft Excel | Google Sheets

This customizable balance sheet template was created with small businesses in mind. Use it to create a snapshot of your company’s assets, liabilities, and equity quarter over quarter. 

Small Business Cash Flow Statement Template 

Small Business Cash Flow Template

Download Small Business Cash Flow Template Microsoft Excel | Google Sheets

Use this customizable cash flow statement template to stay organized when documenting your cash flow. Note the time frame and input all of your financial data in the appropriate cell. With this information, the template will automatically generate your total cash payments, net cash change, and ending cash position.

Break-Even Analysis Template 

Break Even Analysis Template

Download Break-Even Analysis Template Microsoft Excel | Google Sheets

This powerful template can help you determine the point at which you will break even on product investment. Input the sale price of the product, as well as its various associated costs, and this template will display the number of units needed to break even on your initial costs.

Personnel Plan Template  

Personnel Plan Template

Download Personnel Plan Template Microsoft Excel | Google Sheets

Use this simple personnel plan template to help organize and define the monetary cost of the various roles or departments within your company. This template will generate a labor cost total that you can use to compare roles and determine whether you need to make cuts or identify areas for growth.

Sales Forecast Template

Sales Forecast Template

Download Sales Forecast Template Microsoft Excel | Google Sheets

Use this customizable template to forecast your sales month over month and determine the percentage changes. You can use this template to set goals and track sales history as well.

Small Business Financial Plan Dashboard Template

Small Business Financial Plan Dashboard Template

Download Small Business Financial Plan Dashboard Template Microsoft Excel | Google Sheets

This dashboard template provides a visual example of a small business financial plan. It presents the information from your income statement, balance sheet, and cash flow statement in a graphical form that is easy to read and share.

Tips for Completing a Financial Plan for a Small Business

You can simplify the development of your small business financial plan in many ways, from outlining your goals to considering where you may need help. We’ve outlined a few tips from our experts below:

Jesse Thé

  • Outline Your Business Goals: Before you create a financial plan, outline your business goals. This will help you determine where money is being well spent to achieve those goals and where it may not be. “Before applying for financing or investment, list the expected business goals for the next three to five years. You can ask a certified public accountant for help in this regard,” says Thé. The U.S. Small Business Administration or a local small business development center can also help you to understand the local market and important factors for business success. For more help, check out our quick how-to guide on writing a business plan .
  • Make Sure You Have the Right Permits and Insurance: One of the best ways to keep your financial plan on track is to anticipate large expenditures. Double- and triple-check that you have the permits and insurances you need so that you do not incur any fines or surprise expenses down the line. “If you own your own business, you're no longer able to count on your employer for your insurance needs. It's important to have a plan for how you're going to pay for this additional expense and make sure that you know what specific insurance you need to cover your business,” suggests Daost.
  • Separate Personal Goals from Business Goals: Be as unbiased as possible when creating and laying out your business’s financial goals. Your financial and prestige goals as a business owner may be loftier than what your business can currently achieve in the present. Inflating sales forecasts or income numbers will only come back to bite you in the end.
  • Consider Hiring Help: You don’t know what you don’t know, but fortunately, many financial experts are ready to help you. “Hiring financial advisors can help you make sound financial decisions for your business and create a financial roadmap to follow. Many businesses fail in the first few years due to poor planning, which leads to costly mistakes. Having a financial advisor can help keep your business alive, make a profit, and thrive,” says Hewitt.
  • Include Less Obvious Expenses: No income or expense is too small to consider — it all matters when you are creating your financial plan. “I wish I had known that you’re supposed to incorporate anticipated internal hidden expenses in the plan as well,” Patterson shares. “I formulated my first financial plan myself and didn’t have enough knowledge back then. Hence, I missed out on essential expenses, like office maintenance, that are less common.”

Do Small Business Owners Need a Financial Planner?

Not all small business owners need a designated financial planner, but you should understand the documents and information that make up a financial plan. If you do not hire an advisor, you must be informed about your own finances.

Small business owners tend to wear many hats, but Powell says, “it depends on the organization of the owner and their experience with the financial side of operating businesses.” Hiring a financial advisor can take some tasks off your plate and save you time to focus on the many other details that need your attention. Financial planners are experts in their field and may have more intimate knowledge of market trends and changing tax information that can end up saving you money in the long run. 

Yüzbaşıoğlu adds, “Small business owners can greatly benefit from working with a financial advisor. A successful small business often requires more than just the skills of an entrepreneur; a financial advisor can help the company effectively manage risks and maximize opportunities.”

For more examples of the tasks a financial planner might be able to help with, check through our list of free financial planning templates .

Drive Small Business Success with Financial Planning in Smartsheet

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When you wear a lot of hats, you need a tool that empowers you to get more done in less time. Smartsheet helps you achieve that. Try free for 30 days, today .

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Run » finance, 4 simple steps to smart financial planning for small businesses.

Financial planning often involves looking for funding to help take your business performance to the next level. Here are some strategies to explore.

 A young woman sits at a wooden table in a cafe and types something on a digital tablet. On the table next to the tablet are several receipts, a pair of glasses, a small brown paper bag, and a calculator. The woman has long dark hair in braids with gold beads, and she wears a pale pink sweater and a gold necklace with a small pendant.

Financial planning is an iterative, ongoing process that helps your business reach its long-term goals. Financial planning strategies assess your business’s current financial position and allow you to adapt to market changes, forecast business growth, and achieve higher returns.

A typical financial strategy combines two key elements to help you reach your short- and long-term financial benchmarks. These elements are debt and investments. As you think about your financial strategy for the next year and beyond, here’s how to evaluate these options for fueling growth.

Start with goal-setting

Before you can determine whether to take on debt or pitch to investors, you must know the result toward which you are working. Set a SMART goal — one that’s Specific, Measurable, Achievable, Relevant, and Time-Bound — that you can break down into smaller financial targets.

For instance, most business owners aim to increase profit. However, there are more manageable goals that you can set along the way to earning more profit, such as:

  • Increase revenue.
  • Streamline operating expenses.
  • Improve customer retention.
  • Optimize pricing.

Set numerical targets and deadlines for these smaller benchmarks to get a clear picture of the resources and financial strategy that will help you make progress toward your larger objective.

[Read more: CO— Roadmap for Rebuilding: Planning Your Financial Future ]

How to use debt as a financial strategy

Loans are the most common form of debt that a company can use in its financial planning strategy. Loans from financial institutions, credit card companies, or even friends and family can be a good way to get the cash you need for short-term investments.

As a financial planning strategy, the appeal of using debt is that it’s relatively flexible. “Banks offer a range of different business loan products, including term loans, business lines of credit, equipment financing and commercial real estate loans, among other options,” wrote NerdWallet . “Unless you opt for a product that has a specific use case, like a business auto loan, for example, you can generally use a bank loan in a variety of ways to grow and expand your business.”

However, loans have strict eligibility requirements and can be slow to fund, involving a lot of paperwork and a strong credit score. New businesses may struggle to use debt in their financial planning strategy.

Loans are the most common form of debt that a company can use in its financial planning strategy.

How to use equity or investments in financial planning

Issuing equity (stock) is another way to fund your financial plan. Startups in particular can sell shares of ownership to investors to raise capital for growth, expansion, or acquisitions. This allows you to avoid taking on debt and can bring on partners with mentorship and advice to offer.

“With equity financing, there is no loan to repay. The business doesn’t have to make a monthly loan payment which can be particularly important if the business doesn’t initially generate a profit. This in turn, gives you the freedom to channel more money into your growing business,” wrote The Hartford .

The downside of equity financing is that you will need to share a part of your profit with your equity partners. Equity is best suited for financial strategies that require significant capital quickly.

[Read more: 4 Financial Forecasting Models for Small Businesses ]

Final tips for financial planning

Debt and equity are the key ways to ensure you have the cash flow to reach your financial goals, but there are other elements to consider in your strategy. Make sure you plan a safety net for unforeseen risks; build an emergency fund and get insurance to protect your business. In addition, review your financial results quarterly and annually to ensure your projections are realistic.

“As you look over your annual income reports, you can gain insight into the activities that led to improved revenue and double down on them to raise profits as part of your financial plan,” wrote FundKite , a business funding platform.

Revisit your financial plan frequently to make sure the funding options you explore are still serving your business goals. There are plenty of alternative funding sources — such as grants and crowdfunding — that can help you reach short-term benchmarks along the way.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here .

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How to start a business in New York

Sarah Li Cain

Alana Rudder

Alana Rudder

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Updated 7:14 a.m. UTC Nov. 21, 2023

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Starting a business in New York will require you to file relevant documents with the Department of State and your local county depending on your business entity. There are other state-specific steps as well, including applying to the NYS Department of Taxation and signing up for unemployment insurance for employees.

Here are the steps you will need to complete to start doing business in the state:

  • Create a business plan .
  • Select a business entity .
  • Choose a business name .
  • Register your business entity .
  • Apply for an employer identification number (EIN) .
  • Apply for required licenses and permits in New York .
  • Open a business bank and other financial accounts .

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7 steps to register your business in New York

1. create a business plan.

A business plan is a series of documents that outline what your business is about, how you plan on running it, how you will fund its operations and how you expect to remain profitable. Some business plans include details like business earnings and losses and methods to encourage future growth. You can refine this document over time as your business grows.

Different aspects of a business plan you can create include:

  • The business’s name and location.
  • The business’s goals and approximate timeline to reach them.
  • A market analysis.
  • A description of the products or services your business plans on selling.
  • How you plan on organizing your business. How you plan on financing the business and any project income growth.

An important part of any business plan is doing thorough market research. When looking at the industry your business falls under, look for trends or any indications of how your business can remain competitive, such as offering a unique service or a product that can stand the test of time.

Doing thorough market research also means understanding the customers you are serving. Factors to consider include:

  • Who your customers are.
  • Why your customers should buy from your business.
  • How you will continue to serve your customers’ needs.

It also includes the tools and software you need to run your business smoothly, such as credit card readers , POS systems and payroll software .

A business plan can be an important tool to receiving funding for your business unless you are choosing to self-fund it. Depending on the financial institution, most lenders will require you to submit a business plan, including projected financial statements. This is to help lenders during the underwriting process when determining the likelihood your business will turn a profit and in turn, pay back loans on time.

2. Select a business entity 

New York has several types of business entities your business can fall under depending on your business needs. These include:

  • Sole proprietorships.
  • General partnerships.
  • Corporations.
  • Limited liability companies (LLCs).
  • Limited partnerships.

Each type has its own advantages and disadvantages, as well as the type of business for which it is best suited.

The New York Department of State’s business wizard is a useful tool to help you determine which business entity is best and the documents you will need to file for each type.

3. Choose a business name

New York requires that you choose a business name that’s distinguishable from other names registered in the state. Sole proprietorships may not have to adhere to this regulation as they don’t necessarily have to register with the state nor their county unless operating under a different name. New York regulations also prohibit certain words and phrases in business names. These naming guidelines are offered by entity type. It’s good to check these guidelines against any business name you want to use first.

For more guidance, read our guide on how to choose a business name.

4. Register your business entity

Depending on the type of business entity you want to register, you will need to fill out the correct form:

  • Sole proprietorship or partnership: Certificate of assumed name if using a name other than your own.
  • LLCs: Articles of organization .
  • Corporations: Certificate of incorporation .

There are also additional requirements for LLCs and corporations:

  • LLCs : Members are required to adopt and provide an operating agreement, submitted to the New York Department of State when filing the articles of organization or within 90 days afterward. LLCs also need to publish a notice related to the business’ formation in two approved newspapers for six consecutive weeks and file a certificate of publication with the Department of State within 120 days.
  • Corporations : Certain businesses, such as hospitals, need the approval of another agency before filing the certificate of incorporation . The New York Department of State offers guidance on the agencies requiring approvals.

5. Apply for an EIN

An employer identification number (EIN) is mainly used for tax purposes. Issued by the IRS, businesses typically need to use it for other tasks such as applying for business licenses and permits and opening a business bank account.

For more information, read our guide on EINs .

6. Apply for required licenses and permits in New York

Depending on the nature of your business, you may need to apply for certain licenses and permits to operate in New York. For instance, if you plan on selling physical goods or providing certain taxable services in the state, you will need to apply for a sales Tax certificate of authority in order to legally collect sales and use tax .

In addition, the New York Department of State also offers guidance on licenses and permits required for specific types of businesses. Examples of businesses that require additional licenses or permits include:

  • Appearance enhancement: Examples of these businesses include spas and salons. These entities need to provide evidence of purchasing a bond that’s in favor of the people of the State of New York and obtaining an appearance enhancement business/area renter license.
  • Real estate: These companies need to provide proof that the business or relevant professionals running the business have completed the appropriate education and certification requirements.
  • Barbers: Businesses need to get a barber shop’s license if they own and operate one or an area renter license if they’re an independent contractor.
  • Security services: Licenses your business may need to obtain include an armored car carrier license; a watch, guard or patrol agency license and a private Investigator license.

7. Open a business bank and other financial accounts

Opening a business bank account helps to separate your business finances from your personal ones. It also makes it easier when it comes to certain tasks, such as bookkeeping and gathering documentation to file taxes.

Consider shopping around for a business checking account that suits your needs before opening one. Don’t forget to look at business credit cards to help keep track of expenses, earn rewards and make it easier for your employees to pay for business expenses.

Find the best company formation services for New York: Best LLC services of 2023

Frequently asked questions (FAQs)

You will need to pay filing fees to submit a certificate of incorporation ($125) or an article of organization form ($200) to the New York Department of State to form your business. There may be other fees, such as:

  • A business name reservation fee.
  • Registered agent fees.
  • Business formation public notice publication fees.
  • Upfront inventory fees.
  • Marketing fees.
  • POS system fees.
  • Initial deposit fees for a business checking account.

The exact timeline as to when your business can be up and fully functioning will depend on the type of business entity you form. The New York Department of State has different requirements for different business entities, including forms you will need to submit and business licenses to obtain. There is an option to pay for expedited processing, which can help speed up the process to as little as two hours.

No, you don’t need a physical location in New York to open certain types of businesses, such as a sole proprietorship. If your business intends to operate within the state but has no physical presence — such as an online store selling products to New York consumers — you will need to register with the NYS Department of Taxation and Finance.

However, if you form other types of business entities within New York, such as a corporation, you must include a county where your business office will be located within the state.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Sarah Li Cain

Sarah Li Cain is a finance and small business writer currently based in Jacksonville, Florida whose articles have been published with outlets such as Fortune, CNBC Select, the Financial Planning Association and Zillow.

Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.

How to start a small business: A step-by-step guide

How to start a small business: A step-by-step guide

Business Eric Rosenberg

IMAGES

  1. Startup Business Plan Financial Template [Free PDF]

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  2. FREE 12+ Sample Financial Plan Templates in Google Docs

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  3. Startup Models

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  5. Financial Plan Template

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  6. Financial Startup Business Plan Template

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VIDEO

  1. Corporate Finance and it's Features and Sources

  2. Introduction to Business Finance

  3. Startup Business Financial Templates

  4. Startup Superheroes

  5. The Role of a Financial Planner in the Investment Industry

  6. Business Financial Plan Workshop

COMMENTS

  1. How to Prepare a Financial Plan for Startup Business (w/ example)

    Startup financial planning, in simple terms, is a process of planning the financial aspects of a new business. It's an integral part of a business plan and comprises its three major components: balance sheet, income statement, and cash-flow statement.

  2. Business Plan Financial Templates

    This financial plan projections template comes as a set of pro forma templates designed to help startups. The template set includes a 12-month profit and loss statement, a balance sheet, and a cash flow statement for you to detail the current and projected financial position of a business. Download Startup Financial Projections Template

  3. Write your business plan

    Executive summary Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.

  4. Creating a Financial Plan for Startups: The Ultimate Guide

    Your startup's financial plan is the roadmap that lays out the path for your company's future financial success. In it, you make predictions and plans based on historical performance and industry research. Start with your company's current financial situation, add in future goals and predictions, and strategize how to get there.

  5. How To Write A Business Plan (2024 Guide)

    Create Financial Plans Bottom Line Frequently Asked Questions Show more Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your...

  6. Free Startup Plan, Budget & Cost Templates

    A business plan describes how a new business will meet its primary objectives over a given period of time. It is both a strategic document that can act as a roadmap and a tool for securing funding and communicating with stakeholders.

  7. Startup Financial Planning: 14 Tips for Founders

    A financial plan is like a financial game plan for your startup. It outlines your company's current financial state, your goals for the future, the actions you'll take to reach those goals, and how much it's going to cost. Financial planning is the process of putting your "game plan" together and documenting it.

  8. Free Startup Business Plan Templates

    This one-page business plan is ideal for startup companies that want to document and organize key business concepts. The template offers an easy-to-scan layout that's ideal for investors and stakeholders. Use this plan to create a high-level view of your business idea and as a reference as you flesh out a more detailed roadmap for your business.

  9. How to create a robust startup financial model (tips & examples)

    1. Start with revenue projections. Revenue is the lifeblood of any startup. It's the primary indicator of market demand and the foundation for all other financial assumptions. "Revenue will influence the rest of the profit and loss (P&L) assumptions," says Tiffany Hovland, CPA and Vice President of Growth Operators.

  10. Startup Business Plans 101: Your Path to Success

    Financial plans - forecasting and projections Team and management Appendix and supporting documents FAQs on startup business plans Use Venngage to create your startup business plan Preparation and research: 6 steps to laying the foundation of your startup business plan

  11. How to Write a Financial Plan: Budget and Forecasts

    Updated January 3, 2024 Download Now: Free Income Statement Template Creating a financial plan is often the most intimidating part of writing a business plan. It's also one of the most vital.

  12. Business Plan Template for a Startup Business

    Writing a business plan for a startup can sometimes seem overwhelming. To make the process easier and more manageable, this template will guide you step-by-step. ... Financial Plan; Appendices; The Appendices include documents that supplement information in the body of the plan. These might be contracts, leases, purchase orders, intellectual ...

  13. 4 Steps to Creating a Financial Plan for Your Small Business

    The financial plan provides a clear understanding of the company's current financial standing; outlines its strategies, goals and projections; makes clear whether an idea is sustainable and worthy of investment; and monitors the business's financial health as it grows and matures.

  14. 8 Tips to Create a Startup Financial Plan

    Creating a successful plan is the key foundation to building and maintaining a successful startup. Startups must be creative, prioritize cash management, view financial planning as a continuous process, incorporate multiple scenarios, align the plan with business goals, and regularly review and update the plan.

  15. How to start a business in 2024

    Step 3: Write a business plan. You don't have a business without a business plan. Your business plan is the foundational document that outlines how you will structure, operate, fund, market and ...

  16. Business Startup Financial Plan Template

    A business startup financial plan is a comprehensive plan that helps business owners and entrepreneurs manage cash flow, fund operations, and reach financial goals. It is a roadmap that provides a clear view of current financial standings and outlines the steps to be taken to reach future goals.

  17. How To Choose the Right Funding Model for Your Startup

    Financial Need: Evaluate the specific financial needs of your startup. Consider factors such as initial capital requirements, operating expenses, and potential expansion plans.

  18. Guide to Writing a Financial Plan for a Business

    The financial plan section often consists mostly of spreadsheets. It's where the business owner presents a paint-by-numbers case that the business will continue to be profitable or, if it's a startup, become profitable. The financial section is the part of a business plan that many investors turn to first, so it deserves extra attention.

  19. Business Plan: What It Is + How to Write One

    What is a business plan? A business plan is a written document that defines your business goals and the tactics to achieve those goals. A business plan typically explores the competitive landscape of an industry, analyzes a market and different customer segments within it, describes the products and services, lists business strategies for success, and outlines financial planning.

  20. 4 Key Financial Statements For Your Startup Business Plan

    September 12, 2022 Fundraising If you're preparing a business plan for your startup, chances are that investors (or a bank) have also asked you to produce financial projections for your business. That's absolutely normal: any startup business plan should at least include forecasts of the 3 financial statements.

  21. The Complete Guide to Building a Startup Financial Plan from Scratch

    A comprehensive financial plan is a critical component of any startup business. Without a sound financial plan, it will be difficult to make informed decisions about how to allocate resources, manage risks, and grow the business.. There are four key components of a startup financial plan:. 1. A sales forecast: This forecast projects future sales based on historical sales data and market trends.

  22. Writing Business Plan Financials? Include These 3 Statements

    Business plan financials is the section of your business plan that outlines your past, current and projected financial state. This section includes all the numbers and hard data you'll need to plan for your business's future, and to make your case to potential investors. You will need to include supporting financial documents and any ...

  23. Startup financial models

    Startup financial models - 12 templates compared Posted by Stéphane Nasser | April 20, 2020 As a founder, there comes a time when you need a business plan, complete with financial forecasts, income statements, and fancy graphs that will impress your investors. Don't build it from scratch - use an existing model.

  24. Small Business Financial Plans

    A small business financial plan is an outline of the financial status of your business, including income statements, balance sheets, and cash flow information. A financial plan can help guide a small business toward sustainable growth.

  25. How to Write the Financial Section of a Business Plan

    A business plan is all conceptual until you start filling in the numbers and terms. The sections about your marketing plan and strategy are interesting to read, but they don't mean a thing...

  26. Financial Statements for Business Plans and Startup

    Include Financial Statements in Your Business Plan. You will need a complete startup business plan to take to a bank or other business lender. The financial statements are a key part of this plan. Give the main points in the executive summary and include all the statements in the financial section. 09 of 09.

  27. Financial Planning Strategies to Reach your Money Goals

    Financial planning strategies assess your business's current financial position and allow you to adapt to market changes, forecast business growth, and achieve higher returns. ... Issuing equity (stock) is another way to fund your financial plan. Startups in particular can sell shares of ownership to investors to raise capital for growth ...

  28. Kickstart your venture: Your go-to business launch checklist for 2024

    To create a good business plan, start by defining your mission, vision, and goals. Outline your product or service offerings and how they meet consumer demands.

  29. How to start a business in New York

    7 steps to register your business in New York 1. Create a business plan. A business plan is a series of documents that outline what your business is about, how you plan on running it, how you will ...