The Basics of Financial Planning

Did you get into business because of your passion for finances? While some may answer “yes”, many more will say their reason for getting into business came out of a passion for providing a service or creating a product. This means that many people in business don’t have a background in finances, so keeping up with the financial health of the company can be a challenge. However, that doesn’t mean you can’t do it.

How to Develop a Financial Plan

By developing a basic financial plan, you’ll get a sense of your business’s current finances and make strategic moves towards the future. How can you do this if your strong suit isn’t finance? The best thing you can do is put together a team of experts who can help you crunch the numbers and analyze them. This team might include an accountant, business banker, insurance or risk management professional, investment banker, bookkeeper, third party administrator, payroll provider and a lending specialist. Obviously, you can tailor this team to your business’s needs and size.

What should you look for in the financial plan?

A key component you should seek is cost accounting so that you can determine appropriate pricing models for your products or services. This will ensure that you’re meeting the bottom line and charging more than it costs you to make your product or perform your service.

Are you ready to take the plunge and transform your business, striving towards a more successful future? Part of your journey will include a financial plan, but there are many other important elements of your business to consider. Discover your own personal algorithm for success! We invite you to download StratIQ’s free ebook, The Magic Number: Creating a Personal Algorithm for Success to help you as you begin your journey.

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