Skip to main content

Posts

Showing posts with the label business plan

How can line of credit help you with cash flow?

As we mentioned earlier cash flow can cause serious financial troubles and is the most common reason why businesses fail. Some type of businesses like start-ups, construction, seasonal and contract businesses are more likely to have big fluctuations in cash flow. Nevertheless they have to find a way to pay the bills. There are expenses like rent and salaries that you have to pay every month but other unplanned expenses often emerge. Making a financial plan and budget will help you better manage your expenses and avoid cash shortages. Cash flow projection is especially important for start-up businesses since they usually need time to generate positive cash flow. Sometimes even if you make money on paper you can ran out if it and be forced to close the doors of your business. It is very likely that you will find yourself in situation that you need more working capital. Alternative to standard bank loan is business line of credit. Line of credit can help you solve your cas...

Importance of financial plan in business

Financial plan is a very important part of your business plan. In this section you need to present the three main financial documents, income statement, cash flow projections and balance sheet. The point of financial plan is to determine is your business viable and this is the part that most investors will examine when deciding to invest in your business. Financial planing is more of a process  than a product. In order to create good financial plan you need to establish business goals. Monitoring the financial plan on a regular basis is essential to make necessary changes and achieve your business goals. When starting a business you will have two kinds of business costs, start-up and operating expenses. Start-up cost will get your business up and running while the operating costs are going to keep your business running. In order to make a good business plan you need to gather and analyze data. There are three main financial documents that will help you. Income statement sho...