Business Financial
Most business owners do not possess natural talent when it
comes to the financial and accounting part of their business.
These skills take time and discipline to develop so the use
of a professional is advised. Even if you are not an expert,
business finance falls into 6 basic categories:
 |
Personal |
|
Startup Budget |
|
Long-term Pro forma Budget |
|
Business Financial Statements |
|
Record Keeping |
|
Requesting Funding |
Your personal finances
The first step in planning a business is to examine your
personal financial situation. "What do my personal finances
have to do with my business" you ask. Possibly everything.
Every prospective business owner should order a copy of their
personal
credit report. Why?
|
You don't want any surprises when you go
a financial institution for business funding |
|
By reviewing your credit report before you
apply for funding, you have the opportunity to repair
any negative or incorrect information |
|
If you have current credit issues, contact
a nonprofit credit counseling service |
Next, prepare a household budget. Why?
|
In preparing a household budget, a prospective
business owner begins the process of developing a startup
budget. Businesses have many of the same expenses as a
household |
|
You have to determine the minimum amount
you business has to pay you to maintain your current lifestyle. |
Download Helpful Spreadsheets
To use the spreadsheets below, you need to have Microsoft
Excel installed on your computer. You can download a free
viewer from Microsoft by clicking on the logo below. In order
to have complete editing capabilities, you need to purchase
Excel from Microsoft, if you do not already have it.
Click
here for free viewer.
Click
for household budget form (DOS)
Click
for household budget form (EXCEL)
Finally, create your personal financial statement. If you
are in need of financing for your business, you will need
to fill out a personal financial statement when you apply
for funding. By completing it beforehand, you will be ahead
of the game.
Click
for personal financial statement (EXCEL)
|
