Understanding business financial planning for your small business

Did you know your unpaid invoices can be used to secure funding?

Get an invoice finance quote online or call us on the freephone number below to have a chat with one of our business cash flow experts.

Get a quote online 0808 250 0859

What is a business financial plan?

A business financial plan is a comprehensive and strategic document that outlines a company's financial goals, strategies, and projected financial activities. It serves as a roadmap, guiding businesses in allocating resources, managing cash flow, and making informed decisions to achieve financial stability and growth.

This plan typically includes detailed forecasts of income and expenses, investment strategies, risk management tactics, and funding requirements. Essential for both new and established businesses, a well-crafted financial plan ensures financial health and supports long-term business objectives. By providing a clear financial blueprint, it plays a pivotal role in steering a company towards success.

The 5 steps to creating a financial plan for your small business

Step 1: Assess your current financial status

Understanding your cash flow

The first step is to thoroughly understand your business's cash flow. This involves tracking all sources of income and expenses, helping you identify trends and anticipate future cash flow needs.

Analyse your balance sheet

A detailed balance sheet offers insights into the assets, liabilities, and equity of your business. This snapshot of your financial health is crucial for making informed business decisions.

Step 2: Set clear financial goals

Establishing short-term and long-term objectives

Your financial plan should include both immediate goals, like improving cash flow, and long-term aspirations such as market expansion or product diversification.

Crafting a realistic budget

Create a budget that reflects your financial goals, considering all aspects of your business operations. This will guide your spending and investment decisions.

Step 3: Develop a risk management strategy

Identify potential risks

Identifying risks early is key to managing them effectively. This includes market risks, operational risks, and financial risks.

Create a plan for risk mitigation

Having a plan in place for potential risks, including appropriate insurance and contingency strategies, ensures your business is prepared for unforeseen events.

Step 4: Identify investment and growth opportunities

Evaluating expansion potential

Look for opportunities to grow your business, such as entering new markets or developing new products or services.

Understand funding options

Know the various funding options available, from traditional bank loans to alternative financing methods, and choose one that best fits your business model and growth objectives.

Step 5: Implement regular financial reporting and analysis

Conducting financial reviews

Regular reviews of your financial performance help you stay on track to meet your goals and make necessary adjustments.

Using financial metrics

Key financial metrics provide valuable insights into your business’s performance and are essential tools for decision-making.

Have you ever thought about invoice finance to help improve your cash flow?

Invoice finance allows you to release cash quickly from your unpaid invoices.

As your lender, we can release up to 90% of your invoices within 24 hours. On payment of the invoice from your customers, we will then release the final amount minus any fees and charges. There are different types of invoice financing options available to businesses depending on the situation and the level of control they require in collecting unpaid invoices.

We are an invoice financing company who offer a solution whereby payments are collected on your behalf managed by our team of expert credit controllers so you can focus on running your business. Our confidential invoice discounting solution is offered to businesses who want to maintain their own credit control processes, therefore this remains strictly confidential so your customers are unaware of our involvement.

Get in touch

Contact our friendly UK advisors on our freephone

0808 250 0859

8:45 - 17:15 - Monday to Thursday &
8:45 - 16:45 - Friday

The benefits of invoice finance companies such as Novuna Business cash flow

  • Boost your cash flow without having to wait up to 120 days for your customers to pay you

  • Release up to 90% of the invoice straight away, and the final 10% when the invoice is settled

  • Access funds within 24 hours from initial appointment with our revolutionary digital onboarding process

  • Benefit from our in-house credit control processes, allowing you to focus on running your business, instead of chasing clients for payment

  • Six month trial period followed by a rolling contract

Want to understand more cash flow finance terms?

Our Cash Flow Finance Resource Hub has been set up to help SME's with cash flow finance advice, tips and resources to help with their cash flow position.

We explore ways you can begin improving your cash flow situation and start getting your business on track to positive cash flow.

Quickly get the right invoice finance solution for your business, simply fill out the requirements below to get your quote:

We'll compare the best invoice financing products available to get you the best deal.

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