Financial planning

What is Financial Planning? Financial planning is the long-term process of wisely managing your finances so you can achieve your goals and dreams. Remember, financial planning is a process, not a product

It provides the entrepreneur with a complete picture of: The Financial Plan It provides the entrepreneur with a complete picture of: The amount of funds and when they are coming into the organization. Where funds are going and how much cash is available. The projected financial position of the firm. The plan explains how the entrepreneur intends to meet financial obligations and maintain the venture’s liquidity.

steps of Create a Financial Plan Establish Goals Gather Data Analyze & Evaluate Your Financial Status Develop a Plan Implement the Plan Monitor the Plan & Make Necessary Adjustments

What is the Definition of Revenue? The revenue of something- is all the money produced from a specific source projected revenue is the amount of money expected to be earned. It is important for business people to know this figure. This will effect their budget. Projected sales is the amount a business expects to sell during a certain amount of time.

Costs per Unit Costs per Unit – What will be the cost of making each product? Estimate each expense for making the product for a month and divide your total expenses by the number of products you aim to produce in that month, as follows: Cost per product = total expenses / number of products to be made

What is the difference between Price Per Unit and Cost Per Unit The Price Per Unit is the sales price of an item; this is what you charge the people who buy it from you Cost Per Unit The Cost Per Unit is the amount it cost you to buy the item from a vendor Profit – how much money you will make on each sale after expenses are subtracted Profit = Income – Expenses How many products do you estimate to produce in one year? Products per year _____________x Profit per item= Profit for 1 year