Author : chef ssentongo Geoffrey
Blog : Restaurant business
How to Develop Business Financial plans?
A financial plan that accurately anticipates variables, as well as the unexpected, is key to successful business management.
Whether you are planning the launch of a start-up, or are estimating next year’s business and planning for any financing that might be needed, careful study of historical numbers and skillful estimation of future results directly impact your net profits.
ANALYZE AND PLAN
1- Gather your historical financial information including your accounting reports, bank statements and tax returns.
2 – list your fixed costs and dependable revenues on your working p&l. This is the base for your financial planning.
3 – list and analyze variable and unexpected costs and revenues from your historical information.
4 – Estimate the costs of planned projects and business development campaigns for the next year. Add those to your working P&l.
5 – Check your finished work for errors. Projections can easily become skewed giving unrealistic results.
WHAT IS EARNED REVENUE IN AN OPERATING BUSINESS BUDGET?
Your restaurant operating budget outlines anticipated revenue and operating costs for a given period, typically a year.
Annual budgeting process allow you to compare business income and expenses to see whether you need additional loans or to invest income in new business or owner earnings distributions.
HOW TO CREATE EFFECTIVE BUSINESS PLANS?
An effective business plan inspires action, whether from you or a potential investor. Some restaurant business owners don’t realize the true value of a logical, reasonable and actionable plan.
* Focus heavily on the marketing and business financial performance items of your plan.
* I cloud thorough information about your management team in your business plan, including Resumes, Experience and any beneficial connections that your team has within the industry.
* Gather research on all pertinent elements of your proposal and include references to them in your plan. That includes your competitive analysis, SWOT(strengths, weaknesses, opportunities and threats) marketing focus and financial business.
* Add realistic and measurable information about your vision for the business.
* Add product samples or online demos to your plan to support the description of your product or service and bring your concept to life.
HOW TO MAKE BUSINESS REVENUE PROJECTIONS
Forecasting your revenue is important for more than just profit-projection exercises. Accurately predicting your revenue can help you manage your cash flow, avoid credit problems and cash crunches, create more accurate budgets and effectively predict demand and its related production and labor needs using a variety of techniques.
* Investigate marketplace trends. Visit websites of trade or professional associations in your industry to find out if they are predicting any trends that might effect your business or sales.
* Project sales, work with your sales department to project your sales over a variety of parameters. Estimates your revenues by customers, distribution channels, products, territory and sales reps.
* Estimate Receivable Turnover, in addition to projecting how much revenue you might have this year, estimate when it will arrive to help with cash flow planning.
Connect with us every week through..
> Facebook page (Bite my plate)