Money to grow: make a financial plan

If you have plans to grow your business, this often requires extra money. Financiers will ask you for a good business plan. Such a plan is also very useful for yourself to map out your financial course. Three steps to a financial plan.

Financial substantiation

Figures don’t lie and can help you steer a realistic course. Always substantiate your plans with figures. Grab your administration (and your accountant) and determine, based on your results and in combination with your growth goals , what is financially feasible. Making the following budgets can give you that insight.

  1. Operating budget

An operating budget (also known as a results budget) clarifies the minimum turnover you need to achieve to cover costs and make a profit. You budget the exploitation for several years. First determine how much turnover you expect. Then calculate the purchasing costs and subtract them from the turnover, which is your gross profit. Also deduct all operating costs (see point 2 below). You can count the depreciation of your business assets (depreciation) as costs. Also subtract that from the gross profit. Then you subtract the taxes, such as income tax. Indicate in the operating budget amounts excluding VAT. Keep in mind that personnel costs, due to pension and insurance costs, are about 30 percent higher than the gross salary.

  1. Operating expenses

As a foundation for the operating budget, you must also provide insight into the operating costs. You also do this for several years. Depreciation and costs for:



Promotion (marketing)




Personnel costs

Interest and bank charges


  1. Liquidity budget

A liquidity budget indicates how much money you receive and spend each month. Based on this, you can determine whether your company needs extra money in certain months and when it is smart to make an investment. First determine your opening balance (as of January 1). Then list what income and expenses you expect in each month. Determine whether there is a surplus or deficit in a particular month. Then adjust the budget to eliminate deficits. Take payment terms into account of customers who pay on account. On average, it takes 45 days for someone to pay their bill. Also think of holidays, you may have fewer or no assignments during that period. Some payments are periodic and cannot be deferred, such as taxes, rent, telephone costs and wages. With a liquidity budget, make sure that the amounts include VAT.

By making budgets you gain more insight into the financial feasibility of your plans. It gives you insight into where you are now.

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