It also helps the CEO to set financial targets for the organization and reward staff for meeting objectives within the budget.The following diagram shows how the financial plan fits into the overall business plan of an organization.Tags: Alexander Pope Essay Criticism SparknotesLaw Dissertations ProposalsOnline Creative Writing WebsitesStem Cell Research Papers EssaysThe Stranger EssayCritical Analysis Essay The Yellow Wallpaper
The financial plan is one of the first things created to help managers make decisions that are in the best interest of the organization.
Financial planning for a business is the task of determining how the organization will afford to achieve its strategic goals.
It will also include how you plan on raising capital, whether you want to try to find outside investors or obtain lending from financial institutions.
Even if you don’t need financial assistance in order to get your company up and running, it is still a good idea to draft a financial plan so you can get a better idea of how you expect to expand your business over the next few years.
Such business plans will include the type of products you are offering, any services being offered, where you plan on operating, how you plan to have such products made, and more.
Included in the financial plan will be a marketing strategy and how you expect to find new clients.
As a business owner, you really don’t know what to expect: in the beginning stages, you may spend more money than you might have anticipated.
For this reason, it’s really good to have a financial cushion to make sure that the business is covered. Most small business owners underestimate the power of a marketing budget to run the right ads and get in front of the right people.
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