Financial Planning For Business
                     FINANCIAL PLANNING 
FOR BUSINESSES
INTRODUCTION
Building a business financial plan is never easy. It 
requires effort, good data, and a fair amount of 
imagination. And if you’ve never done this before, 
you’ll likely hit a few roadblocks along the way. 
Source: blog.spendesk.com
What is business 
financial planning? 
The financial section of a business plan is one of the 
most essential components of the plan, as you will 
need it if you have any hope of winning over investors 
or obtaining a bank loan.
Source: blog.spendesk.com
IMPORTANCE OF 
FINANCIAL PLANNING IN 
BUSINESS
Cash flow 
management
Your financial plan should also set clear expectations 
for cash flow - the amount coming in and out of the 
company. In the beginning, you’ll of course spend 
more than you make.
Source: blog.spendesk.com
Smart budget 
allocation
This is obviously closely related to cash flow management 
(above) and cost reductions (below). 
Once you have a clear understanding of the amount of 
funding you have to spend - whether through sales income 
or investments - you need to figure out how you’ll actually 
spend it. 
Source: blog.spendesk.com
Necessary cost 
reductions
Aside from setting out how much you can afford to 
spend (and on what), a financial plan also lets you spot 
savings ahead of time. 
If you’ve already been in business for some time, 
building your financial plan involves first looking back at 
what you’ve already spent and how fast you’re currently 
growing. 
Source: blog.spendesk.com
Risk mitigation
A crucial aspect of the finance team’s role is to help 
companies avoid and navigate risk - from financial 
fraud to economic crisis. 
And while plenty of risks are hard to predict or even 
avoid, there are plenty that you can see coming. 
Source: blog.spendesk.com
Crisis management
The first thing that tends to happen in any company 
crisis is you review and re-build your plans. 
Which of course means that you must have a clear 
business plan in the first place. Otherwise, your crisis 
response is simply to improvise. 
Source: blog.spendesk.com
Smooth fundraising
A financial plan that speaks to investors is critical, and 
the better your history of planning is, the more likely 
they’ll trust your projections. 
So whether or not you’re looking for funds today, a 
business financial plan is an important tool in your 
chest. 
Source: blog.spendesk.com
Growth roadmap
Financial plan helps you analyze your current situation, 
and project where you want the business to be in the 
future. 
Again, your wider business plan will do this on a broad 
level: the markets you’d like to be present in; the 
number of employees you’ll have; the products or 
services you hope to sell. 
Source: blog.spendesk.com