A complete financial plan includes the following estimates or budgets:
  • Investment budget

    Your investment budget should include a list of the investments you'll need to start your business and those that can wait until a later stage. This is an indicator of the minimum amount you'll need to get started.

  • Financial budget

    Your financial budget should detail how you intend to finance your investment budget. Options include personal capital (equity capital) or loans, e.g. from a bank (borrowed capital), or even a combination of the two.

  • Operating budget

    Your operating budget should show that your business is profitable. This will allow you to estimate your turnover. You can then analyse the costs to keep your business running. Combining these, you can determine whether you'll make a profit or a loss.

  • Cash flow forecast

    Income and expenditure can fluctuate greatly over a year. Your cash flow forecast should include all income and expenditure over a given period, e.g. per month or per quarter. This will highlight when you'll have surplus cash and when you'll need extra funds.

  • Personal budget

    One option is to determine how much personal capital you have and then base your financial plan on your personal situation. This involves calculating how much you'll need for you and your family, how much you will have to pay in tax and what your operational costs will be. This allows you to work out your minimum turnover to make ends meet.