Everybody dreams to be free financially! But everyone doesn’t give what it takes to be. In fact, majority won’t be free financially. But it becomes easier to create more wealth, if anyone can key into this financial planning principle.
You and I planned to invest in ourselves through taking risks. But in terms of financial management for your business, have you felt the wonders attached to financial planning?
Amazingly, due to my experiences so far, financial planning determines how my business will afford/cost to meet its strategic goals and aims.
If you don’t really consider financial planning, it doesn’t mean you’ll break down. But stuffs are faster and better done with adequate planning in business, especially in the area of finance
Before anyone starts a business, or even if you’ve started, I’ll advise you draft out a financial planning.
What is Financial Planning (and how to do Financial Planning) in short before we go into the facts?
Financial Plan (planning) highlights each of the activities, resources, equipment and materials which are needed to meet your goals and objectives. In fact the timeframes are also involved. You’d lose a lot of money unknowingly (or even knowingly) without planning financially.
To do that, You’d first assess the idea of your business;
confirm the SWOT analysis; identify and research well the historical resources information of the business till date;
quantify these resources; calculate the total sum it’ll cost you;
and identify the risks you selectively take.
Today in IdeaFlavour, these below powerful reasons will inform on why you should take the vitality of financial planning on your business and personal lives to be very important. I’ve been so blessed, following this planning. If you know me, you’ll testify ☺
Your Personal Finance Management Upgrades
You’ll effectively manage your financial life through financial planning. Drawing out and calculating the profit or the capital you get helps you understand how much money you’ll need for dues you’ll settle, expenditures you’ll spend, and the amount you’ll save.
Last week, I met a beautiful woman, a PhD holder in Business Administration. In her words, I pointed out a clause – “or don’t you know us entrepreneurs are stingy?“
Funnily enough, I’ve experienced folks out there. They’d tell you entrepreneurs are stingy. They don’t spend on themselves. Another hilarious thing is these folks would always plan spending on liabilities, which is why most of’em are broke whenever you check their financial lives.
I’m not against anybody working for money this time around. Of course, getting a job is great; in fact, it makes you earn more with your business. But what I grieve against is wasting the money hard earned!
Or what else is there to impress people after food, needed clothing, housing, happiness and good health? Oh! Few liabilities 😊 from your passive cashflow…
When entrepreneurs go broke, we don’t lose to the air! We’ve leveraged into investments which we can sell or recycle to fetch us back our grands.
It’d be very difficult for you to arrange your financial management priorities right if you don’t do financial planning.
You’ll get a Continuous Cashflow
You’d increase your cashflows by investigating your expenses. Wise spending and synthetic budgeting will help you keep more of your hard earned money.
For instance, in a situation where you are confused on what action to take to diversify your funds, you’d just carry your plotted plan. In fact, it poses you to remember your purpose of planning to start up.
Ready Capitals and Unlimited Funds for a New StartUp
The increase in cash flow will lead to an increase in capitals you’ve been dreaming of to diversify with. This will allow you to consider starting another investments that will promote your overall financial status.
For instance, you are passionate about other business you think you can add up even with your current investment. Financial Planning helps you sort out capitals easily.
Providing for yourself financial security is an important part of the financial planning purpose. While you have the correct insurance coverage and policies in place, you can provide yourself peace of mind.
You’d Rightly Choose Your Appropriate Business Idea
Well, a financial plan highlights your personal circumstances, goals and risk factors. These seems of a guide that fits your needs, personality, and goals. You wouldn’t dabble into the major errors most entrepreneurs face.
This is the problem of choosing a wrong business idea.
Financial Planning is a Great Guide to Your Financial Advisor
When you establish a relationship with a financial advisor you believe you can trust, it is is still more soft to achieving your goals. This financial advisor will meet with you to assess your latest financial situation and create an understandable plan customized for you.
A financial advisor is the person who can provide you financial advice or guidance to customers for compensation. Financial advisors, or advisers, can provide many different services, such as investment management, income tax preparation and estate planning.
You open a more clearer door of opportunities with your advisor if you draft up a financial plan.
It’s important to note that it’s not until you start the use of financial planning until you become successful. But you only increase your chance of winning the competition. Because investment models and algorithms become changed day-by-day.
Kindly comment about this financial planning if you also use it and how it has helped you. Share with your friends!
Godwin Oluponmile already helped many entrepreneurs achieve financial dreams. He’s a vast entrepreneur under a degree in English and International Relations.
Godwin is a freelancer who found great joy writing about maintaining financial and purposeful living.
He’s a poet, a guitarist, and a public speaker. Consider regular updates from him, following him on Facebook here