Financial Planning And The Business Planning Process

Introduction Planning is a significant and necessary step for all businesses (Topfer, 2011), but its importance is magnified for entrepreneurs starting a new business. They must determine if they have a viable product/service that a business can be structured around, create a projection on how the business will potentially perform financially, required sales levels to turn a profit, etc. Without the proper planning and analysis, entrepreneurs are setting themselves, and their business, up for failure. There are many tools available to entrepreneurs to help determine if their proposed business will provide a needed product or service and if the business to offer and manage those products and services will be successful. One of these tools is that of a feasibility analysis. This paper will discuss exactly what this analysis is and the benefits it provides to the entrepreneur. Financial planning is another step successful entrepreneurs will utilize in the business planning process. A m ore in-depth process than that in the feasibility analysis, this process involves making calculating projections of the business venture’s financial performance. This paper will further identify why the financial planning process is imperative to an entrepreneur’s business planning. One component of financial planning for new businesses is determining the level of sales they will earn. It is important that organizations research and forecast these levels, as this revenue is what will help driveShow MoreRelatedManagerial Accounting1152 Words   |  5 PagesAccounting Accounting is a crucial part in running a business. There are various forms of accounting that can be used, it is very important to know which technique is best to use for what companies. Once you figure out a particular technique to use, it is important to keep an open mind if there are any changes that need to take place in the business. 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