How Does a Business Devise a Financial Plan?

Video Transcript

"Hi, my name is John Niemira, and I wanted to talk to you today about how a company devises a financial plan. A financial plan is one section of your business plan. What you want to look at in a financial plan is the overall financial wherewithall for your company. You want to look at both sides -- the income side of it and the expense side of it. We'll start on the income side. What are you predicting to come in for income? What are you going to sell and how much of it are you going to sell? Are you going to be selling products and services or just products? You want to detail on a line by line item of what the...what your potential income is on the expense side. Just as important, if not more important, you want a line by line budget that shows you the expenses -- all the expenses of your business. The variable and the fixed expenses. So variable expenses like electric, lights, and phones and supplies. Fixed expenses like maybe mortgages and car payments. So be very, very detailed with this plan. Make sure you understand the financials of your business and make sure you understand what you're getting into. If you need any more information on this subject or any other subject in the business field, my email address is jniemira@gmail.com."