Developing a business is more than just designing your business logo and setting up your business social media profiles. It is more about setting up a strong business financial plan. Until you chalk out your finances, your business will not have a strong ground. Scott Tominaga is a professional financial expert. Scott has helped a lot of people design their perfect financial strategy to build a business. A solid business financial plan is not just for the corporate types. It is your roadmap, your lifeline, and your business spreadsheet. It is about taking control of your future.
Scott Tominaga Says Know Why You Are Developing This
Before you get started ask yourself a few questions. Try to find the bigger picture. Try to ask yourself what this business means to you? Is it a big one for you? Will you take it up as your sole bread earner? Or is it going to be a side earning tool? Clarity here sets the tone for every decision you are about to make.
Begin With Costs
This is the technical part. You need to think about your business capital. You need to think about how much cost you will need to run your business. Once you understand this, you are at a better place to build your business financial plan. Scott says that if you are not sure about your objective or don’t know how to create your plan, you can always speak to an expert.
Cash Flow: The Part No One Wants to Talk About
Even if you are making money, you can still run out of cash. It is very common in business. This is why, your financial plan needs a cash flow section. It is going to show when money is coming in and going out. This is where a lot of businesses fail.
Have An Alternative Plan Ready
Every plan does not work. This is why, you must be flexible and have other plans ready. What happens if you lose your first client? If your launch does not work? If you hit a quiet month? You should have a plan for emergency plan ready. You should also know what to cut if it comes down to that.
Wrap It All Into a Living Document
Once it is all written down including costs, revenue, cash flow, projections, and profit plan, you need to create a clear document. This is not for an investor. This is for you. This is your roadmap.
Review it monthly according to Scott Tominaga. Change it whenever needed. Compare what you planned and what is actually happening. A habit of monitoring can help you get better at your business. A financial plan is not a one-time plan thing. It grows with you. If your business evolves, your plan should change too. You don’t need to be a financial expert to build a business plan that works for you. You just need to be honest, disciplined, and willing to face the numbers. This is about making your dream sustainable. When you write your financial plan, you are not just writing numbers. You are developing your business’s story.
