Develop a Financial Plan for a Small Business Overview A financial plan is a forecast of future performance for a business, small businesses can benefit greatly from taking the time to do a financial plan at least annually. The plan helps a small business owner to better manage cash flow by preparing for situations that could result in cash shortages, such as seasonal fluctuations in revenues. The financial plan is normally prepared as part of an overall business planning process, during which goals are set and strategies are chosen to help the business grow in the upcoming year. Tasks: 1. Business model for your financial plan. Outline a business model, broadly speaking this can include: the nature of the business, objectives, area of operation, location, financial resources, product and/or services, target market, etc. 2. Convert marketing strategies into expenditures. Strategies depict the course of action you want to take. A strategy might be to advertise in local newspapers or sponsor charity events to increase customer awareness. a. Do a cost estimate for your marketing strategy. 3. Create a forecast of your revenues. Determine the assumptions you want to use for key variables such as unit sales, number of customers, and prices for your products or services. Cost out your revenue forecasts and specify anticipated profits. 4. Forecast general and administrative expense. Project your expected facilities costs, such as rent, utilities, insurance, or recurring legal expenses. I.e., Fixed costs