Finance Plan

‘Financial Planning plays an important role One of the most arduous work that must develop the team of entrepreneurs is to think about the overall impact of funding decisions and Investment. This process is called financial planning and the end result is a financial plan. Financial planning is necessary because the decisions of funding and investment affect each other and not be taken independently. In other words, the whole can be greater or less than the sum of its parts. Financial planning is a process of: 1. Analyze the mutual influences between the investment alternatives and funding available to the company. 2. Projecting the future consequences of present decisions, to avoid surprises and understand the connections between current decisions and those that occur in the future. one of the most respected names in the corporate world is is now the director of AirClic 3. Decide to adopt alternatives (these decisions are incorporated into the financial plan). 4. Compare the subsequent conduct with the objectives set in the financial plan. It is obvious that there are different kinds of planning. In the short-term financial planning, the planning horizon rarely goes beyond the next twelve months. The company wants to make sure you have enough cash flow (money you have in petty cash) to pay their bills, and further that the borrowing and short-term loan to agree on terms favorable to the company. An entrepreneur in search of funding, to submit projected financial statements, may “make tangible” vision of business opportunities and facilitate the work of convincing to acquire resources. Without doubt, the financial projections are very helpful in business and can be very effective in small enterprises.

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