Unfortunately, between your dream and reality often stand - money and competent staff. Good, that I'm telling you here how to be successful with both resource topics! ;-)
Resource topic # 1: Financial planning.
Well, money still rules the world: A central chapter in the business plan is the financial plan. This represents the corporate development of the next few years in numbers and thus provides information on whether your project is worthwhile. You begin the financial plan by determining the start-up costs and spending on investments.
The financial plan still is the core of every business plan. The budget plan combines all the estimates and concepts that you have developed in the previous chapters (for example, in the marketing mix).
When you create the financial plan, it's best to go step by step:
a. Spendings at the beginning (for example start-up costs, pre-investment)
b. Sales forecast
c. Cost planning
d. Investment planning
f. Liquidity planning
a. Spendings at the beginning
Before you start with your business, you must first invest money in your project. In particular, any start-up costs for a company and pre-investment are relevant for your financial plan. Start-up costs are expenditures, which usually arise before or during the foundation. On the other hand, you usually do your investments directly after the actual start-up. Maybe you want to have a prototype of your product created, to find sponsors.
b. Sales forecast
Based on the analysis and assumptions you made when creating your business plan, you have all the information you need to estimate your future sales. And yes, of course, it's an estimate - that's what every investor knows. Try to be as realistic as possible. As hard as it might be, at times: This is about expected facts, not about wishes!
c. Cost planning
In order to realize the planned sales, you will naturally also have costs. This means, e.g. expenses for personnel (including your own wages), for purchasing goods, for marketing or for external advice and support. If you want to borrow, you will certainly have to pay interest, and you should consider this. Experience has shown that sales are always overestimated and the costs in the financial plan are set too low. So, agian, as this is crucial: try to be as realistic as possible. Also, create a reserve position for unplanned expenses.
If you are wondering if there is a difference between costs and investment, then I can answer that with a resounding "yes". Investments are special expenses that will eventually benefit you. Investments are recorded in the balance sheet of your company and increase the value of your business. These can be smaller purchases such as IT components or machines, but also larger items such as research and development costs. Investing can be very expensive, so plan well!
Now that you know what the cost of implementing your idea will be, you can think about how to fund it. There are different possibilities for this. Maybe you have your own funds to invest or you need to raise additional equity. For example, by business angels, venture capital initiatives or other investors. However, with these solutions you will probably have to hand over a portion of your shares. But there are also a number of debt financing instruments, such as classic bank loans or smart options like crowdfunding. Also, the optimal balance between equity and debt is an important issue that you should answer in the financial plan, in this section. My experts will be glad to help you!
f. Liquidity planning
Most of the time, you'll spend more money in the first few months than you thought. You must consider this important factor in the financial plan and especially in the liquidity planning. It would be a pity if you had to stop developing your product because you did not make careful liquidity planning. This can be prevented in most cases – from the outset!
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About the topic of the Team
These elements should definitely be included in a full budget plan:
- How much money is spent on founding?
- Investment overview: what is your money invested in?
- Plan profit and loss account: when will profits be made?
- Liquidity plan: are liquidity shortages already foreseeable?
- Profitability calculation: is your project worthwhile?
The finance plan is a very central element of your business plan. Potential investors will put your financial plan through its paces. You can see if you have worked carefully in the business plan and made realistic assumptions.
By the way: The financial plan will continue to accompany you in the future - because it is never completed with version one. Even a financial plan must live and breathe. ;-) New insights that you gain in the course of your activity should always be reintegrated into an updated version.
Ask my experts for assistance in preparing your financial plan - or let them constructively criticize your existing one. This will help you spot weaknesses before your potential investor alerts you.
And, hey - nobody is perfect, especially when it comes to new territory!
Resource topic #2: the team.
"Go, Team": In addition to the aspects of financial planning, the employee topic is also the main focus of many founders: How many people need to be hired and what functions should they take on? Again, of course, the staff costs must be considered.
Whether or not you hire people depends largely on what you do after the start and what resources are available to you. You determine the personnel requirements and align your personnel planning with three possible scenarios:
a.) You first do all the work yourself, or have it done by external service providers. Examples of this are often freelancers who offer their services as lone fighters or operators of online shops that buy the design and programming from agencies.
b.) As part of starting a team, you gather additional skills and abilities in the company - but the members of the start-up team are not to be regarded as classical employees in the context of personnel planning.
c.) If you determine in your personnel planning that you, as a founder - whether alone or in a team - can not handle all the tasks on your own, that you expect a high demand and do not want to depend solely on external service providers, you have to search for and hire employees, As a rule, a shop, a restaurant or a law firm will not be able to do without additional staff and personnel planning will become more important.
Employees and thus the personnel planning are a decisive success factor for numerous start-ups, among other things because they:
- are active in sales
- Take on office or administrative tasks so you have time for your core business
- have certain skills that you do not bring with you.
About the topic of finance
In addition to the permanent hiring of staff, you can also fall back on freelancers in your personnel planning or employ new employees only part-time or in mini-jobs. Learn more from my experts on the possibilities of different employment relationships.
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With the preceding executive summary you conclude the business plan. Use the knowledge and experience of my experts - a qualified HelloNina expert checks your business plan and supports you in the founding process!