Financial planning is a mission critical task to launching and maintaining a successful company. It isn’t the sort of requirement that a manager or business owner can push back from or finish in a single afternoon. It is an ongoing process that must evolve as the company does. Owners often have stories about months or even years of preparation aligning funds through loan applications, non-profit grants, or investor capital before creating presentations for potential stakeholders.
Creating a financial plan for a small businesses successfully must be broken down into various stages because each category requires different amounts of capital. Further, some funding resources may qualify for one aspect of a business while others have use restrictions applied to their use. It is also critical to have solid Generally Accepted Accounting Principles (GAAPs) in place before you begin to use these accounts to avoid introducing any impropriety into your business practices.
As you begin to develop your business’s financial plan, here are some of the categories you will need to plan for:
If you don’t take on the tasks one category at a time, you risk losing focus or omitting key details which will invariably need to be expensed. It also helps, of course, to draft a plan with a consultant or area specialist on topics you aren’t as well-versed in to avoid overlooking details. A strategic planner will have the expertise that can guide you through the entire process.
What you do not want is to underbudget your financing needs as your company is getting off the ground. It’s imperative that you have developed a smart plan to get your business through the upstart period of non-profitability.
If you know of other businesses that can deliver one of your products or services more efficiently or more affordably, than you can be open to the partnering concept. You want, more than anything, repeat business and an excellent customer experience to keep them coming back, especially in the early years. Reciprocity through formal contract agreements can create economies of scale within your operations even from an outside source, such as a competitor.
Everyone needs to be fairly compensated for their contributions to your business. And over time, top contributors will be rewarded for quality work and dedication. Without question, they need the option to contribute earnings into a 401(k)-retirement account. Only you know whether you can budget to provide a matching benefit for your staff. However, in the very least, hire a retirement plan consultant to set everything up and roll out a program that managers and employees and get enthusiastic about.
Seeking outside consultation from financial specialists is always reasonable when you are putting together a business plan, especially if you are new business owner, or if your company is scaling from small to medium-sized and you want to ensure that your company’s finances evolve appropriately. Professionals at a firm like SD Mayer can sit down with you and help you tailor a step-by-step plan for your company. We also have a wealth of additional materials and resources including seminars, ebooks, and podcasts to help you stay informed and confident in every financial decision you make on behalf of your business.
SD Mayer specializes in creating a financial plan for small business success. We have decades of experience in accounting, HR, strategic business planning, and retirement benefits programs. With so many resources under one roof, you gain the benefit of an entire team to help you take that big step forward as you launch your company. We are eager to help you get there, and we’d like to find out more about you and your company’s unique needs. Contact us today to get started.