How can I draw up a financial plan for my business?
How can I draw up a financial plan for my business that will give me an in-depth report on changes that I should make financially to maximize profit?
Working with a CFO/bookkeeping or CPA service can certainly help you put together a financial plan for your business. For smaller or younger companies, consider using an outsourced CFO service which can be less expensive to you and still give you what you want and need.
Using your financial statements, a financial model of your business can be created to "map-out" the pros and cons of the different options for your business. If you're looking to sell the business, obviously things get more complicated than maximizing profit....because now we're looking at increasing the multiple a buyer might pay you. To read more about some of your options, read this.
Best of luck!
Based on your question, I'll assume you understand the benefits of having a Business/Financial Plan, but don't know how to go about it.
Most community colleges have an office that will assist local businesses in writing a business plan, review demographic information and other considerations in assessing the viability of the business concept or to improve your bottom line. They often collaborate with local banks to provide guidance on what should be in the plan to be able to obtain financing if needed.
You could also contact SCORE at www.score.org to speak with a business mentor to answer your questions.
Good Luck in your new adventure.
The profit and loss statement should be as detailed as possible so you can see where you are spending your money. There are programs like QuickBooks that can help you get this done or ask your accountant/bookkeeper. The type of business you have is also going to greatly impact your plan and decision making but the P&L statements are a great place to start.
Great question. I wrote a blog post last November on Mike Michalowicz's book "Profit First". Mike's latest book is an excellent resource for entrepreneurs seeking better cash flow within their business. I'd suggest this as a starting point and want to make it clear that I have no affiliation with Mr. Michalowicz.