Managing business finance during the start-up phase
Prepare a financial plan for your start-up business
Once you have gathered all your key financial data, including estimates, overheads, and expenses, the next step is to produce a financial plan.
The first step is to draw up a budget - a plan for spending and saving your money.
You should:
- Prepare budgets showing the level of sales and profits you expect to achieve, and the costs involved in doing so - see set up a profit and loss account for your business.
- Estimate your total sales - see forecast and plan your sales.
- Prepare monthly or weekly cashflow forecasts (which should be regularly updated), looking ahead one year - overheads such as rent can be accurately predicted - see cashflow management.
Stick to your budget
Once you have drawn up your budget, it is important to stick to it so you don't risk overspending or running out of money for essentials. The key to budgeting is maintaining simple but up-to-date records. You will need to keep track of where your money comes from and where it goes.
For more information on preparing a financial plan see business budgeting.
Free business start-up support
Access free start-up business support from your local council. If you have a great idea but you're not sure how to turn it into a business, or you have already started out in business and require mentorship on your next steps, Go Succeed Start experts will help you to create a business plan, seek funding and put all the foundations in place to get your business up and running.
Complete a short enquiry form or call 0800 027 0639 to register for this free advice and guidance.