What we want to talk about in today’s article is the financial plan of a company. It is important not to confuse it or mix concepts with what is known as “financial statements”. Therefore, here we are going to define what a financial plan is and what it is for, its advantages and the structure to carry it out.
If you want to learn how to make a financial plan for a project, don’t miss any details!
Fundamental keys to the financial plan
Remember that at Quipu we have told you how to forecast a company’s cash flow and, also, how to analyze the financial status of your business. They are two topics very related to what we are analyzing today, the financial plan.
We already know what a financial plan is and what its advantages are, but before giving way to its structure, we have to know the keys that allow us to understand a financial plan. These are the following:
- It can be used to evaluate the viability of both a business or company and an investment project.
- It is necessary to determine several factors: on the one hand, the investment horizon (that is, the time in which investments will come in); on the other hand, the character or objectives of the company (for example, if we want it to be eco-friendly or responsible local consumption); It is also interesting to define the risk of the operation (based on this, investment, savings and financing will be defined).
- Finally, it is important to know the company and the project inside out, and know how to answer the following questions: What will be the prices of my products or services? How much will it cost me to produce them? How many employees will I need? What investment do I need? What will my expenses be?