How to develop a section of a financial plan in a business plan

The head of a small business may well manage the budget on his own. CHECKED! If you engage in budget management on a regular basis, at least once or twice a week, then you begin to "feel" your enterprise and, as a result, skillfully balance between discretion and business excitement.

But in order to really increase income, actively develop and expand without getting involved in unreasonable debts and loans, it is better to start not with a budget, but with setting a business goal and creating rules. Read more here

So, budget. The budget is usually required in three cases: 1. You need a classic BDDS. 2. Take a loan from a bank, you need a plan of income and expenses and a cash flow forecast. 3. You have a real business and you want to earn more, spend less, while always seeing the complete financial picture.

These are different budgets. In order not to torment the expectations of students and borrowers, we give a link to the first two budgets. Download. And we ourselves will go further. Real business is much more interesting.

Classic Cash Flow Budget

Cash flow forecast

Income and Expenditure Plan

Real business cash flow budget

Let's try to approach such an important issue as studying the budgeting process the old fashioned way. So the statute of the Smolny Institute insistently demanded “that children always have the appearance of cheerful, cheerful, contented and“ free actions of the soul. ”Therefore, it was ordered not at all not to make the subjects of boredom, grief and disgust from the sciences, but to facilitate the assimilation of knowledge in all possible ways. a sample of the Cash Flow Budget for a real business (hereinafter referred to as the "Budget") Unlike the Income and Expenditure Budget, this tool focuses not on projected profit, but on the ability to practically control cash flow.

This budget is suitable for a small manufacturing enterprise, an enterprise engaged in wholesale trade or construction and installation work. This is the case when revenues and costs are best managed by orders or projects.

Budget executed in Excel spreadsheets. It is easy to operate and does not require any special knowledge of information technology. All calculations are based on the SUMIFS formula and the "Data Validation" function. The file includes two main sheets: the "Cash flow budget" sheet and the "Payments register" sheet.

The "Cash flow budget" sheet includes cells with formulas (colored) with data on actual receipts and costs and empty cells (white) for planned data.

You should start working with the Cash Flow Budget from the "Cash Flow Budget" sheet. In the column "Project" it is necessary to enter data on orders or projects. You can adjust the expense items of the "Fixed costs", "Financial", "Investment" sections, add by copying the line of the "Project" section.

How to write it correctly, and will be discussed in our article.

What should be reflected here?

The clause should include the following indicators and documents:

  • forecasted values ​​of financial results;
  • project of cash flows;
  • planned balance of the company;
  • a number of main proposals and key financial indicators;
  • profit and loss forecast.

The forecast period is usually considered to be a period of time from 3 to 5 years.

Opening costs

The writing of this section presupposes a mandatory breakdown of the costs required to open a business. Each of these activities can be included in one of the following groups:

  • organization of physical space, which includes preparation of premises and the required number of workplaces, arrangement of suitable space for working with consumers, etc.;
  • purchase of the required the number of equipment, its installation and configuration (industrial, commercial or office);
  • installation of communication systems - telephone and Internet;
  • providing the facility with a burglar alarm, if necessary;
  • payment for the services of such categories of employees as a lawyer, accountant or any other professional assistant;
  • payment of tax contributions, payment of state fees when going through the official registration procedure, as well as obtaining various types of licenses (if this is required by the planned type activity);
  • payment for the services of a designer who produces signs, posters, indoor advertising stands, etc.
  • payment for the services of a recruiting agency, which will select any necessary personnel.

For information on how to correctly plan this item, see the following video:

Monthly expenses

Almost any newly opened enterprise cannot do without the following fixed costs:

  • rent - the amount depends on the area and location of the premises;
  • monthly payment for telephone and Internet, other utility costs;
  • payment of accounting or other support;
  • other office plan expenses;
  • salary payments to employees;
  • payment of taxes and mandatory contributions;
  • accommodation advertising.

For information on what kind of business to open during the crisis, see here.

4. 2. Detailed financial plan (budget) ...

A detailed financial plan is only a quantitative expression of marketing and master plans. It will help entrepreneurs determine how well their marketing plan matches their production plan and vice versa. It may turn out that the plans do not correspond to the budgetary possibilities and are unrealistic. Then they must be changed. If the firm cannot find a plan that has an acceptable budgetary justification, it is necessary to consider changing the objectives. You may have to go through the feedback loop several times.

Pay attention!

Budgetary management will help in managing the enterprise in the future, as well as in managing the people employed in the firm's business. This is the measure by which an entrepreneur can evaluate the performance of his firm.

The importance of this plan is indicated by the fact that many people call this section a business plan, omitting other sections.

An enterprise financial plan or budget consists of three main financial statements:

• P&L budget (provides information on profitability);

• cash flow budget (provides information on the ability of a business to generate cash and meet its financial obligations);

• balance sheet (a snapshot of the financial solvency of the business, balancing the sources of funds and the funds themselves under the management of the company).

There is no standard planning period. In fact, different activities require different planning periods. For example, a forestry or agriculture business may take decades to return the initial investment, while a fertilizer loan for that year could prove the business is viable within one year.

The rule of thumb is that the planning period should be long enough for the project to generate the necessary cash. This means that in the cash flow forecast, cash receipts consistently exceed cash payments without additional external funding sources. However, usually the period for drawing up a financial plan is 1-3 years, and for the first year, monthly details are used, for the second - quarterly, and for the third - quarterly or, most often, an entire year.


Budgeting is one of the most important steps in planning a project launch.

Whatever one may say, without the correct distribution of monetary resources you won't go far. Especially if these resources are in short supply, as is often the case for aspiring entrepreneurs.

The effectiveness of all subsequent steps and, in general, the feasibility of your ideas will depend on how correctly and effectively you draw up a budget.

Many entrepreneurs make a big mistake when they decide to start creating a product or launch a project without first drawing up a budget or drawing it by eye.

Many people think of the budget as just a certain amount that they are ready to invest in a project. But if this amount is not in any way compared with the expected costs and is not broken down into specific cost items, then most likely this amount will remain just the amount that will be spent on "project needs".

With a high degree of probability, this approach will lead to the fact that you spend your money in the most ineffective way, and never implement the project. In other words, the money will run out even before your business starts.

A budget is, first of all, a plan and forecast that gives team members and all people involved in the project a clearer idea and understanding of what funds are needed to translate an idea into reality and how you will spend it.

Budgeting is a three-step process. Let's consider in detail each of them.

Setting goals and prioritizing tasks

In order to plan income and expenditure items of the company's budget, as part of any business plan, a financial section is developed that presents investors with a visual picture of the movement of cash flows and the use of funds received as a loan. The presented calculations are usually carried out for several scenarios, one of which takes into account the most negative concurrence of circumstances, is taken as a worker and must ensure the enterprise, at least, break-even. The financial plan is usually developed for a period of 3 to 5 years and covers all possible budget items, allowing the entrepreneur to draw up a strategy for behavior in the event of market price fluctuations.

Required Justification

To prove to investors, most of whom are economists, that the business plan of the presented project is feasible and will pay off in the medium term, it is necessary and sufficient to draw up the following documents:

  • income and expense plans;
  • cash flow analysis;
  • balance sheet at the beginning and end of the financial year, drawn up in accordance with the standardized form of financial statements ...

To detail the structure of profits and costs, calculations should be carried out as follows:

  • for the first - second planning year - monthly;
  • for the third - fourth years - quarterly;
  • for the last year - for the entire reporting period.

Such a structure clearly demonstrates the expenditure of initial investments and their gradual return, and also allows for seasonal fluctuations in demand and prices for products.

Profit and loss detection

Before compiling balances according to the accepted reporting forms, it is necessary to identify all possible sources of income and directions of spending, and this requires appropriate plans to analyze the structure of the project and bring all its elements to an orderly system.

Possible sources of income

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