What a good business plan must achieve
A business plan describes the project, market, team, sales, organisation and financing requirements. It is addressed to readers who have little time and examine critically: investors, banks, development institutions and, not least, your own team. It must therefore be concise, comprehensible and traceable in every respect.
Together with you, we develop a clear structure, sharpen the key messages and ensure that every statement in the text has a counterpart in the planned figures. A concise summary at the beginning often decides whether the rest is read at all.
Integrated financial planning: three statements, one model
Integrated financial planning refers to earnings planning, liquidity planning and the planned balance sheet being linked with one another in a common model. A change in one place – for instance a later start of sales – then has an automatic and consistent effect on all three statements.
- GuV (Gewinn- und Verlustrechnung – profit and loss account): income and expenses, i.e. the question of whether the company makes a profit or a loss in a period.
- Liquidity plan: actual incoming and outgoing payments, i.e. the question of whether there is enough money available at all times to pay invoices, salaries and taxes.
- Planned balance sheet: assets and financing as at a reporting date, i.e. the question of how equity, debt and assets develop.
Why liquidity is often more important than profit
A young company can be profitable on paper and still become insolvent, for instance if customers pay late, inventories have to be pre-financed or VAT has to be paid before the money has been received. The liquidity plan makes such bottlenecks visible before they occur.
It also shows the actual capital requirement: how much money is needed by what point in time, including an appropriate safety buffer. This figure is the basis of every financing request.
Disclosing assumptions, calculating scenarios
Every plan is based on assumptions about prices, sales volumes, staff build-up or payment terms. We document these assumptions transparently so that readers can follow and question them. In addition, we calculate several scenarios, typically a base case, a cautious case and a favourable case.
The tax assessment of individual items and the reconciliation with the accounts are carried out in cooperation with your tax adviser.
Frequently asked questions
Over what period should the financial planning extend?
Three to five years is customary, with the first one to two years planned monthly and the following years quarterly or annually. The exact format depends on the project and the addressee.
Will you prepare the business plan for us?
We develop it together with you. Content on product, market and team comes from you; we structure it, check it for consistency and build the financial model. This enables you to defend every figure yourself in discussions.
In what format will we receive the financial model?
As a rule, as a transparently structured spreadsheet model that you can update yourself.
Does the planned balance sheet replace annual financial statements?
No. The planned balance sheet is a forecast. The annual financial statements are prepared in accordance with the statutory requirements by you or your tax adviser.