Download the business plan in Excel for free and you will be able to make financial calculations for your business plan. We have developed an algorithm that allows you simulate the financial indicators for any business free of charge and submit them for consideration by the bank to obtain a loan.
How to use the downloaded template of the business plan
To begin with, you need to determine the value of capital you have to buy in order to start a business. This usually includes equipment, premises, furniture, website, franchising or prototype production. If your business involves any of these costs, you need to plan them carefully. This will be a one-time expense, which will form only a part of the required funds.
The second stage is the planning of the company’s activity. You must first understand the amount of goods or services you can actually produce. In addition, you should calculate how much money will be spent on the purchase of goods, raw materials or spare parts. These expenses form so-called material costs. For many enterprises, these are the main ones. Salary is another part of the important expenses for an enterprise. You have to plan a number of employees and a salary fund to pay for their work. Indirect costs associated with the organization of activity are equally important. These costs include rent, delivery, electricity and other utilities as well as taxes. Expenses on product promotion are the most important at the initial stage of activity. Without advertising you can’t promote your business and therefore you will not be able to sell your products. Advertising costs need to be planned in such a way that the company receives a constant flow of customers. Even if your own funds are not enough, there are cases when it is expedient to borrow money for advertising purposes. For young businesses, advertising costs are frequently the most significant. However, it should be noted that these costs form the production cost and are transferred to the price. That is why money needs to be spent in an amount to ensure the price for the goods is not higher than that of competitors.
Having planned the operational expenses, it’s necessary to form the so-called reserves of funds that need to be made in order to finance the business at the initial stage. How many months are you ready to finance your own business? One, two or maybe six months? If an enterprise can’t sell its products, it will not be able to grow in the future. However, you must wait for some time to gain a base of customers. Of course, this does not apply to the cases when enterprises produce products the market is not ready to accept. In this case, it is unreasonable to finance costs longer than six months.
Financing of business activity
Loan is the most popular option to finance small businesses. Banks willingly provide loans at interest rates, especially if any property is available. However, in order to receive funds, it is necessary to plan whether the company will be able to repay the loan. That is why the costs of repayment are mandatory for planning. They will form the solvency index of the enterprise, which is carefully examined by the bank analysts.
Having the total amount of expenses, you can calculate the total cost of producing goods or services. Think about the price margin for your goods or services. It should not be higher than that of competitors. On the other hand, the price should ensure the profitability of the company, despite its costs.
Having planned all these indicators, you will be able to get complete financial projections for the business plan.
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