Financial planning is one of the most critical tasks that you must do if you’re planning to start a business. This is to plan out how you can help your business to achieve its financial goals and purpose. A financial plan is usually created once you’ve figured out the vision and objectives of your business, to ensure that you won’t have to go through several risks and loses that could’ve been avoided by preparing ahead of time, as indicated in the financial plan.
To create a financial plan, you can either start from scratch or make one yourself by utilizing countless tools for financial planning. One of the most useful ones are the spreadsheet template or what we simply know as financial plan template. A spreadsheet template or a financial plan template is usually in Excel to provide a systematic numeric report of a business or an entity and are made by financing experts who have a substantial experience and industry know-how.
The financial plan template can be used as a base to start with creating your financial plan for your business since it already has the appropriate components that you need to fill up with inputs according to your specifications. Of course, you can also choose the specific industries of the spreadsheet template so that you won’t have to figure out the industry know-how needed to complete the financial plan.
To create a solid financial plan, you must choose a template that must go through the following aspects in financial modeling:
- Definition of the Purpose of the Model
- Proper Model Formatting
- Choosing the proper Model Structure
- Providing Model Checks
- Avoid certain financial modeling habits
- Operating Model
- Debt Schedule
- Fixed Asset Schedule
- Financial Statements
- Financial Ratios
- Direct Cash Flows
- Discount Rate
- Discounted Cash Flow Valuation
- Key Financial Metrics
- Scenario Analysis
- Executive Summary
Creating a financial plan can be quite tedious, so making use of financial plan templates or spreadsheet templates are a heaven sent to those in need. So, if you’re looking for a place where you can download these templates that matched up the required list above, you can check out eFinancialModels and their wide-range of industry-specific financial model templates made by financial modeling experts. You can also learn more about how to create a solid financial plan by reading the complete article here: Building a Financial Model in Excel, where all the aspects are explained more in detail.