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How to create a solid financial plan

How to create a solid financial plan

Build a business with your new skills.
Try Shopify free for 14 days, no credit card required.
Start Shopify free trial

A financial plan gives you the power to better manage your business, project expenses, and even apply for financing in the future.

This video outlines the main pieces you need to make a solid financial plan:

  1. Balance sheets are statements that outline all of your business’s assets, liabilities, and any equity. Assets are broken down into current (available cash and any outstanding invoices), fixed (things your business owns, like property or equipment) and intangible (copyrights, patents, IPs) . Liabilities are money that your business owes. Like to suppliers, vendors or employee compensation. Equity is the value of your business’ assets after subtracting liabilities
  2. Cash flow projections focus on how much money is expected to come into and out of your business during a specific time period in the future.
  3. Income statements is an itemized outline of your business’ expenses, revenues, and profits for a specified period. Most built-up businesses create income statements either quarterly or annually, but many new businesses create income statements on a monthly basis.

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<h1>Build an online store for your business with your new skills.</h1><p>Shopify has everything you need to start selling, all in one place.</p>

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