As a financial manager, it is your responsibility to come up with the financial plan that will lead to your business’s success. This is no easy task when working for a startup. There are many unique challenges that come with financial planning for startups. For one, the business may not be profitable for the first years. Financial managers can learn from reading materials from Brithe Publishing.
Brithe Publishing is dedicated to publishing books that focus on high-level business topics. As thought leaders in American Manufacturing, the works we publish offer deep insight into management in different industries. For financial managers in a startup, it is important to understand financial growth in a competitive field. Learn more about financial plans and the book Don’t Be Evil: A Financial Analysis of Google.
Writing a Financial Plan
Though the financial plan is only a portion of the entire business plan, it is a key aspect to any business. The financial plan looks into the future of the company and the direction growth is taking. A financial plan is also a living document that managers will return to and update as the business grows and changes. Here are some of the topics that must be covered in the plan:
- Sales Forecast: Project your sales over the next three years. Be sure to also include the cost of sales so you can estimate the revenue you’ll make during each year.
- Expenses Budget: Understand the costs involved in making sales. Establish fixed and variable costs. Then also take into account the taxes you expect to pay for total sales.
- Cash-Flow Statement: Be aware of the money that is coming in and going out. Break your sales down into 12 months to get what is coming in. This will lead to effectively handling operating costs.
- Income Projections: Take your sales forecast, expense projections, and cash flow statement to find how much income you’ll earn over the next three years.
- Assets and Liabilities: Find the net worth of your business by taking into account anything that isn’t in your profit or loss statements. Land, buildings, and equipment are all assets. Any debt or money you owe is important to list as well.
- Breakeven Analysis: At what point will your expenses match your sales? With this three-year projection, you should be able to see when your business will become profitable.
Financial managers can use these steps for their startup to create an understanding of the finances in the years to come. It is crucial to know how the business will fare as the years progress. These plans can also be revisited to adjust for big successes or pitfalls along the way. It is important to be aware of the money to continue operating and eventually grow.
Reading on Financial Management
The book, Don’t Be Evil: A Financial Analysis of Google, gives financial managers a deep look into Google and how it went from a noun to a verb meaning, to search. Blake Stone offers an in depth look at the financial and competitive situations Google found itself in early on. The book also goes into some of the competitors and their own growth.
In 2011, both Baidu and Yandex were able to report higher international growth percentages than Google. Though both of these companies combine to a small fraction of Google’s total earnings, they have been successful as competitors. The book is great for financial managers to learn excellent strategies to find financial growth for their startups.
If you are a financial manager for a startup, Brithe Publishing has the best book to help you reach success. Startups face a lot of challenges with lack of resources, money, and staff. Reading Don’t Be Evil: A Financial Analysis of Google will better equip you to face the competition. Learn more about the book and order it heretoday!