Financial planning must begin with your business’ strategic plan. You must think about what you wish to achieve at the beginning of a new year and inquire yourself a string of queries:• Do I need to expand?• Do I need more equipment?• Do I need to hire more staff?• Do I need other new resources?• How will my plan affect my cash flow?• Will I need financing? If yes, how much?

Then, determine the financial impact in the coming twelve months, including spending on major projects.

Develop monthly financial projections bydocumenting your expected earning based onsales projections & expected expenditures forsupplies, labour, overhead, etc. If you have avery tight cash flow, you may wish to makeweekly projections.

Make use of your financial forecasts to determine your financing requirements.Approach your financial partners before time to know about your options. Well-prepared financial projections will help assure banking institutions that yourmonetary management is solid.

It is a sound idea to have an emergencyfund before you actually require them.Maintain a cash reserve or keep lots ofroom on your line of credit.

Through the year, compare actualresults with your projections tofind out if you are on target orhave to adjust. Monitoring aidsyou detect financial issues prior tothey get out of control.

If you don’t have the expertise, consider hiring professional services.