Financing procedure
Posted: Mon Jan 20, 2025 3:39 am
If your business requires funding, then when writing your business plan, make a section in the document outlining your requirements.
Describe here:
The need for funding at the current point in time.
Potential need for funding over the next 5 years.
How do you plan to student databasedistribute the funds raised?
Financial strategy for the future (buyout, sale of business, debt payments, etc.).
All this is described in general terms, but with an indication of the amounts (required now and later).
Financial forecasting
Pay enough attention to this point, because for any investor this is an important point.
What to write in the section:
Figures for the past few years. If this is an ongoing business, provide data for 3-5 years. Include income statements, expense statements, cash flow statements, and balance sheet statements.
Long-term financial projections. Communicate your plans for the near future to investors. Write down for each year what profit you plan to receive, what expenses are expected. Make sure that the financing you are counting on will be sufficient to implement the projections.
Present all financial data in the business plan as a brief analysis. Visualization of figures will make the picture more clear, so graphs will be useful here.
Risks
Undesirable scenarios should also be taken into account. List possible risk factors here, list your company's strengths and weaknesses. Prepare strategies for dealing with negative scenarios. List:
risks within and outside the company;
hazard indicators;
order of actions for all values.
Risks, like the market situation, are constantly changing, so they need to be reviewed regularly. Identify risk areas for your business (these could be partners, customers, distribution channels, etc.) and then define indicators for them (numbers that mean things are bad).
For example, if raw materials arrive 2 days late, this is not a problem, but a delay of the third day is already a signal that something needs to be done. Prepare for such moments in advance, write out a scenario of actions for each of the risk signals. It would be good to appoint a person who will monitor these "bells" and control the adoption of the necessary measures on them.
Application
Describe here:
The need for funding at the current point in time.
Potential need for funding over the next 5 years.
How do you plan to student databasedistribute the funds raised?
Financial strategy for the future (buyout, sale of business, debt payments, etc.).
All this is described in general terms, but with an indication of the amounts (required now and later).
Financial forecasting
Pay enough attention to this point, because for any investor this is an important point.
What to write in the section:
Figures for the past few years. If this is an ongoing business, provide data for 3-5 years. Include income statements, expense statements, cash flow statements, and balance sheet statements.
Long-term financial projections. Communicate your plans for the near future to investors. Write down for each year what profit you plan to receive, what expenses are expected. Make sure that the financing you are counting on will be sufficient to implement the projections.
Present all financial data in the business plan as a brief analysis. Visualization of figures will make the picture more clear, so graphs will be useful here.
Risks
Undesirable scenarios should also be taken into account. List possible risk factors here, list your company's strengths and weaknesses. Prepare strategies for dealing with negative scenarios. List:
risks within and outside the company;
hazard indicators;
order of actions for all values.
Risks, like the market situation, are constantly changing, so they need to be reviewed regularly. Identify risk areas for your business (these could be partners, customers, distribution channels, etc.) and then define indicators for them (numbers that mean things are bad).
For example, if raw materials arrive 2 days late, this is not a problem, but a delay of the third day is already a signal that something needs to be done. Prepare for such moments in advance, write out a scenario of actions for each of the risk signals. It would be good to appoint a person who will monitor these "bells" and control the adoption of the necessary measures on them.
Application