3 THINGS YOU MUST DO BEFORE APPLYING FOR BUSINESS FINANCE Funding and Business Growth Playbook T: 0330 350 3356 @: hello@GrowingYourNumbers.com www: growingyournumbers.com
You need a map for your business
There are three parts of the ‘Map’ for a business:
a. Your Profit and Loss Forecast, detailing revenue, cost of sales, overheads and net profit.
b. Your Forecast Balance Sheet, detailing what your company assets and liabilities will be over time
c. Your Cash Flow Forecast, the ‘fuel gauge ’ that will tell you how much further you can drive
Your forecast can only ever be your best guess as to what will happen in the future and the further out you look the less certain your plan, but armed with a plan, you can start to really manage your business and your journey from A to B. Your plan is not a one off activity, it should be a living, breathing document that is regularly updated and checked to make sure you are on track, have sufficient fuel and to know if you are deviating from your chosen route, you want to know exactly where to apply the controls to get back on track.
Your business will ideally keep a close track on both sales and profit as well as cash flow by reviewing performance each month to ensure the entire management team know exactly what is happening and when necessary, taking appropriate action to address any deviation.
Using appropriate Management Information allows you to quickly zero in on the potential problem areas and avoid unnecessary discussions related to the parts of your business that are performing according to plan.
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