BENEFITS OF HAVING A GOOD FINANCIAL PLAN

Finance is compared to a business’s “lifeline” and the driving force behind the formation of a startup, so financial planning is critical for any business of any size and in any field. Financial planning is required for all businesses, including small businesses with limited spending budgets and individuals.

How to entice investors

A good and transparent financial plan will help startups gain favor with investors. Because investors can evaluate the feasibility of the options through this plan, it contributes to clearly demonstrating the business plan foundations for that startup’s idea. With detailed and clear financial plans, investors can immediately assess the business’s performance as well as the founder team’s management and problem-solving capacity. The viable business plans are, the higher the business’s success rate when seeking capital. 

Corporate governance and financial planning

A good financial plan will be able to ensure the “lifeline” flow is always smooth and effective, as well as making an indispensable contribution to the development of the business in both the present and future, in addition to making an impression to attract investment. The management board has grounds to make appropriate business decisions based on the information in the plan, rather than continuing the situation of “any contract is also profitable but in the end still struggling financially.” When a reasonable budget expenditure plan is established to both avoid expenses and control finances, the capital source is fully guaranteed, and the balance between cash inflow and outflow is established. This control enables businesses to be proactive in investing in future projects or to mitigate the impact of unexpected changes in the business environment. For example, if the epidemic situation affects the supply of raw materials, driving up prices and related costs, startups will fail with a high probability. This control enables businesses to be proactive in investing in future projects or to mitigate the impact of unexpected changes in the business environment. For example, if the epidemic situation affects the supply of raw materials, driving up prices and related costs, startups will fail with a high probability. 

Financial planning – Setting the stage for a successful start

A startup’s or any business’s financial plan and business plan are said to be parallel on the path to success. If you have a great business idea but no effective execution and regulatory plan, your start and finish will be nil or worse. Financial planning is the foundation for the operation of a business, ensuring a solid foundation for the company’s long-term development and stability. Building a financial plan is a time-consuming and labor-intensive task that necessitates the cooperation of multiple departments within the company.