Once you have gathered together all your key financial information such as estimates, overheads and expenses you can produce a financial plan.
The first step is to draw up a budget - a plan for spending and saving your money.
- Prepare budgets showing the level of sales and profits you expect to achieve, and the costs involved in doing so - see set up a profit and loss account for your business.
- Estimate your total sales - see forecast and plan your sales.
- Prepare monthly or weekly cashflow forecasts (which should be regularly updated), looking ahead one year - overheads such as rent can be accurately predicted - see cashflow management.
Once you have drawn up your budget, it is important to stick to it so you don't risk overspending or running out of money for essentials. The key to budgeting is maintaining simple but up-to-date records. You will need to keep track of where your money comes from and where it goes.
For more information on preparing a financial plan read business budgeting.
Watch Invest NI's tutorial on managing cashflow below.