“Money does not dictate your lifestyle, it’s what you do to get it and how you manage your finances that determines your lifestyle.” ― Wayne Chirisa
Whether small and mid-size businesses, they are actually what mostly consist of a striving economy. It is no question that entrepreneurship and creativity have been the biggest factors that brought about constant change in the economy for centuries. As an example proof of the importance of small and mid-sized businesses, the U.S. is known to have one of the best grooming environments supporting countless startups and small businesses to help stir the economy.
It is already considered a norm for business owners to spend several years building up their businesses. Basically, investing a significant amount of personal time and capital to help grow their companies, raise profitability, as well as ensure financial feasibility to last long against the competition with the old timer businesses. Most often than usual, these entrepreneurs will even place their family fortune locked in their business which doesn’t always result positively. Especially for cases when they’re too focused on operating their business that often the founders of small firms ignore or delay their own personal financial planning until they come close to retirement. To be prepared ahead of time is always better than proceeding blindly. Therefore, financial planning for small business owners became an important factor to consider to ensure their future.
So, to help with financial planning for small business owners, here are several practical steps that small business owners can follow to establish a successful financial plan from starting a business until retirement.
- Goals (Business and Personal) – Distinguishing between what are your business goals and personal goals. Basically, setting up the short and long-term financial goals of your life. One cannot completely stick to their goals due to sometimes the line between the two gets blurred and interfere with each other. As an example would be trying out a new venture or launching a new product for your business and then also planning to save for college trusts for your children as well as saving for retirement. Both cases would require you to choose which to prioritize and put more capital, hence, there will be circumstances that you will have to choose to ensure better long-term financial success. However, it is possible to find balance with the two as long as you prepare a financial plan to achieve not only your business goals but also your personal goals.
- Alternative Financing Sources – Whenever one starts a business, the need for financing is obvious. You could say that the success of such a venture depends on the small business owner’s ability to secure financing for the business. Securing financing is usually the most difficult hurdle for many entrepreneurs and small business owners. In most cases, using your own savings, asking for family’s and friends’ support are done to gather the startup capital of the venture. But of course, there are other sources that you can turn to an alternative outside sources such as loans, equity stake, angel investors, etc.
- Budgeting – Whether for your business or for personal financial purposes, budgeting is a must. Simply by controlling your cash flows will make a huge difference for yourself and your business. Especially when running a small business, it is always not the case where your idea will generate revenue, hence, it is important to ensure that your company revenue should be higher than all the expenses incurred to operate your business. Tracking and analyzing every bit of your expenses makes a huge difference to stay on top and determine which variables need control and spot opportunities that you can proceed to raise more profit. And this, you can do with a proper budget plan for your business and personal life.
- Liquidity – Cash is the lifeblood of any business whether small or large. It will always be needed to help maintain a healthy growth of any business, to be capable of funding for all the expenses incurred to run the business, as well as determine if a business is generating enough cash. This can be ensured with the right set of a business plan as well as a financial plan to prepare before starting the business.
- Taxes – In this world, nothing can be said to be certain except death and taxes. You can’t really deny that the process of filing and paying taxes is very troublesome. Some even try to avoid and not pay at all which eventually end up really bad. There are, of course, different taxation laws depending on where you plan to build your business, hence, it is critical to speak to a professional such as a tax lawyer to assist you. Preparing in advance is the best approach to do as well as making sure to track all the tax filing dates to avoid missing the due date. No matter what kind of business you plan to build, you can never escape taxes.
- Future Plans – Planning to retire early or securing your future? Then as a small business owner, you must not forget to include planning for your future. Though business goals and personal goals are different matters, you still need to build a solid plan for you and your family’s future. This means preparing for your retirement plan, insurance, trust funds, estate plan, and other savings plan that will help you live an easier life once you plan to retire or in case something happens to you. It is always better to prepare for what will come in the future and to secure yours’ and your loved one’s future.
- Business Succession – Once your term’s over, it is a common event to leave your position to a trusted successor. Creating a solid business succession plan will help ensure not only you and your business partners but also your employees, contractors, suppliers, etc., which interests have an impact on your business. Of course, the complexity of the process of the succession will depend on the size of your business as well as the industry and legal status of your business. Though there are some cases where business owners prefer to pass down their business to family members or a relative.
Being the boss can be exhilarating. But there are also significant risks to proceed on your own. Unfortunately, the failure rate of small business is high, with only 50 percent of new businesses surviving for five years according to U.S. statistics. These survivors are either lucky or they know what to expect and doing as well as open their minds to lessons given by existing businesses and competitors. Persistence is also one quality since it is always not the case that a business will go smooth sailing depending on how prepared you are, hence, as long as you’re within the boundaries of your projections, then sometimes you just need to have a little faith.
Of course, it is important to adhere to what are needed to achieve success and these keys to success lie in proper budgeting, determining the right product for your market or audience, marketing that product, and then selling it at the right volume. What small business owners sometimes forget is that they need to adapt their own individual financial plans for the new realities and risks of being a business owner. One point should be clear when it comes to financial planning for the small business owner: the do-it-yourself drive that helped you start your business will not serve you well when it comes to managing the many financial issues created by that business. This is where professional expertise often becomes necessary.
Financial Model for Small Businesses
As a small business owner, planning for the future of your small business is an important part of success. But simply planning won’t help unless you build a solid plan on hand which you can refer to whenever you need help with creating financial decisions. Building a financial model is often what is done to create a framework of your business which will help solidify your business ideals.
Whether for small businesses or large corporations, financial modeling takes different shapes, but basically, it’s all about plugging important variables and running different scenarios into a formula which are very often built on an Excel spreadsheet and seeing the effect or results they have after fitting your business model.
A consultant once said that a well-built financial model will help a business owner understand the costs and profits from their management decisions. What will it cost to open a new location, hire a new employee, and how does that impact the bottom line? A good financial model can answer questions like whether your small business should buy a new piece of equipment or pay down debt too. That’s why using financial statements and market research will give you more accurate results. It’s even a good idea to consider a professional consultant to get an objective base to start from.
One of the best things that you can take advantage of financial modeling is, it is flexible and can be updated whenever you needed. There will be a time when your small business’ conditions change, so the need to always have the ability to run a new scenario to see the outcome is critical to ensure your business’ standing. In other words, building a financial model for small businesses can be very beneficial not only as a tool for decision making but also to prepare for what to expect in the future.
Getting a Loan – SBA Loan Calculator
Most often when starting a business, the capital on hand is not enough, hence, the need to apply for a loan as a financing source is inevitable. Though there can be other external sources which you can try to apply to get financing, getting a loan is often a better and easier choice. Especially for small business owners, taking a loan will be a long-winding process without the right set of tools to help ensure secure financing but it is also considered as an inexpensive way to get financing for their business.
Planning and securing a loan are actually the least things that business owners worry about. What’s more important is how to effectively pay back without having to pay more than what’s intended. Therefore, it is important to build a loan repayment schedule to plan the payment of the loan. One of the most common tools made convenient by financial modelers is an Excel Spreadsheet Loan Calculator for Small Business Owners.
Excel is a very useful tool since it is very flexible with various features that will help you calculate easier as well as it is transparent which basically gives the user a clear view of all the calculations and the logic of the spreadsheet. An Excel spreadsheet loan calculator will greatly help a business owner calculate the loan payment, set up a payment schedule, as well as project the interests according to the interest rate.
If you’re planning to apply for a loan backed by the U.S. Small Business Administration or most commonly known as SBA, the SBA Loan Calculator can be a useful resource to find out how affordable an SBA loan can be for small business owners. You will also learn more as you read the article included within the link provided for the SBA Loan Calculator to help you better understand about SBA Loans for small business owners.
You can also use some of our many Excel spreadsheet loan payments schedule templates to help you build your own financial model related to taking a loan or repaying a loan. These Excel spreadsheet loan payments schedule templates can be used as a base to start with or a reference about financial modeling for loans taken by small business owners.
This Financial Model Template in Excel provides an easy way to forecast the financial performance for a Mobile App or similar Software. It focuses on revenues from paid downloads, in-app purchases, subscriptions and advertisement income
The Pharma Biotech Valuation Model Template calculates the risk-adjusted DCF Value of a Pharma or Biotech Company with several products under development. The product forecasts are probability adjusted to take into account the success probabilities a... read more
Hire a professional financial modeler to assist you with your own financial modeling projects.
The commercial real estate valuation model template assists to run a professional DCF Valuation for a commercial property such as an office building, industrial site, logistics building, storage or a retail building. The model comes as BASIC, PRO and... read more
The Hotel Investment Financial Model provides a framework to forecast the expected cash flows for a hotel investment and calculates the relevant investor metrics such as the IRR (levered and unlevered).
The Beverage Manufacturing Startup Financial Model Template assists founders of Beverage Startup Companies to determine their financing needs and raise capital when talking to investors.
The Hotel Valuation Financial Model provides a simple way to forecast the expected cash flows for a hotel investment and calculates the relevant investor metrics such as the IRR (levered and unlevered).
This is an Excel financial model template for an upstream oil & gas project.
This is a collection of financial model templates for real estate businesses and its related sectors.
The Gold Mine Investment Model is used to determine the financial feasibility of a proposed Gold Mine Investment. The Financial Model outputs IRR and NPV based on the Mine Life expectation.
The Gas Station Financial Feasibility Model Template provides you with a framework to determine the financial feasibility of your next gas station project and come up with an appropriate financing structure. The model calculates the required funding ... read more
This is a collection of financial model templates for projects or ventures in the Renewable Energy Industry and its related sectors.
Offering you with Custom financial modeling services or assistance by an experienced financial modeling team called Big4WallStreet.
This financial model attempts to give the user a full scope of starting a 250 bed (adjustable) hospital. It will allow for all revenue and cost assumptions at a very complex level that is fully dynamic as well as show effects of a loan as % of startu... read more
The Wind Energy Financial Model forecasts the expected financials for a Wind Park project and calculates the project's IRR and NPV.
Looking for a fertile niche for business development? Then we advise you to pay attention to boutique hotels. Every day their popularity is growing. Today, more and more VIP guests prefer luxurious, comfortable, and great boutique hotel apartments in... read more
Build your dream car wash scenario and see what kind of cash flows play out.
Key logic designed to forecast cash flow up to 10 years for a fitness center that has recurring monthly fees.
Includes all the assumptions you need to project the gross revenues and profits of a LaaS platform (Lending as a Service).
Financial Modeling Services on Request or mainly Customized financial modeling and tracking/reporting automation services.
Highly dynamic financial model that is specific to renting equipment out. High attention paid to the cash flows and timeliness of them so the user has optimal planning and insight capability.
Launching and running a restaurant business is one of the most attractive types of investment. Almost every professional chef thinks about how to open a restaurant. Do you want to realize your creative potential, receive great satisfaction from the f... read more
This bundle of financial model templates provides you a package of relevant SaaS, eCommerce and Online Marketing financial model templates
Allow a potential miner to see visually and numerically (annual basis) what their possible financial position would look like when starting up an open-pit mining operation.
The Dairy Farm Valuation Model forecasts the expected financials for a dairy farm and calculates the resulting DCF value.
Commercial Real Estate Excel model which generates the cash flows of the project as well as for equity investors and calculates the relevant metrics (debt yield, debt service coverage ratio, cap rates, and interest coverage ratio).
This is a collection of financial model templates in Excel for businesses in the Manufacturing industry and its related sectors.
This detailed, yet easy to use three statement financial model will allow you to calculate your business' profit and loss, build a balance sheet and calculate cash flow, as well as perform a valuation for a start up or already operating restaurant bu... read more
The Restaurant Valuation Model assists entrepreneurs to quickly derive a financial plan for a restaurant chains. The restaurants can either be owned or operated by third-parties as Franchise.
The DCF Valuation Model for Restaurants provides a business plan in the form of an Excel Template to value a restaurant based on the Discounted Cash Flow Method.
Start Up Solar Farm Excel Model presents the business case of an investment in the construction of a solar farm and the sale of the energy generated from it. The model generates the three financial statements as well as the cash flows and calculates ... read more
The Poultry Farm Valuation Model allows forecasting the financial statements for a poultry farm based on operational metrics such as the hatchery ratio, mortality rate etc. The financial model calculates the resulting DCF value of the farm.
The Mini Storage Business Plan Templates provides a financial plan to start a mini storage business. Enter your expected rent roll and cost structure and calculate Project IRR, Investor IRR and required funding.
This is a collection of financial model templates related to real estate.
Hire a professional financial modeler to assist you with your own financial modeling projects.
This is a collection of financial model templates for businesses in the Information technology Industry and its related sectors including SaaS, Mobile App, eCommerce, Organic and Paid Marketing campaigns.
The financial model provides an excel template for a multi-year financial plan, DCF valuation and IRR analysis for a serviced office operator or co-work space.
The hotel business has been one of the most popular areas of commercial activity for many years. And if you want to become a successful hotelier, not only famous but also making great money, then you should familiarize yourself with our offer (busine... read more
This is a collection of financial model templates for businesses in the Agriculture Industry and its related sectors.
The Biogas Financial Model forecasts the expected financials for a Biogas plant project and calculates the IRR and NPV values for the project.
The eCommerce Valuation Model forecasts the expected financials for a webshop or eCommerce business and calculates the resulting DCF value.
A cafe is a place for meetings with friends, for negotiations and romantic dates. More and more consumers are willing to pay for this service. That is why new cafes, coffee houses, cafeterias grow at every step like mushrooms after rain. If you are w... read more
This valuation model in Excel assists fish farmers and investors to value a fish farm based on the Discounted Cash Flow (DCF) Method. The model is fully comprehensive, including a fish nursery, hatchery and fish farm.
The Private Equity Leveraged Buyout Model offers a simple template to calculate the financial returns (IRR and cash on cash multiple) of a leveraged buyout acquisition from a Private Equity investment perspective.
Plan out all aspects of starting up your own mobile home community or park. End to end from assumptions to return data.
E-commerce Business Models Highlights Three-year e-commerce business plan is useful to create e-commerce revenue models and calculate the costs of starting an online business: check profitability, plan daily and yearly revenues and forecast multiple ... read more
This Financial Model Template in Excel assists you to determine the financial feasibility for your next Tourism Project. The model comes up with monthly and yearly financial forecasts based on the estimated number of visitors and revenue models relat... read more
Today, very few people visit state medical institutions because the fear of a dentist still exists in people`s minds since childhood. The reason for this is the superficial level of service and training of public dentists. That is why so many private... read more
Many doctors who are tired of baseless nagging of the authorities and irregular schedules go into their own business. Yes, many people have no medical education. Still, with the necessary organizational skills and an understanding of the specifics of... read more
Test out various assumptions to see if it makes sense for you to open a franchise or multiple franchises. Includes assumptions specific to the operations of a franchise.
3 statement 5 year rolling financial projection Excel model for a startup /existing manufacturing business
Compare fixed and variable legs of an interest rate swap.
This is a collection of financial model templates for businesses in the Education Industry as well as its related sectors.
Do you dream of a successful hotel business? Do you want to combine work and comfortable rest? Then it would be best if you thought about your opening resort. A private hotel on the coast or, for example, in the mountains, can be a very profitable pr... read more
Do you have managerial talent? Do you have a clear idea of the competent functioning of a paid clinic? Then you should consider starting your outpatient medical practice! The start of private outpatient medical centers is relevant today and, with pro... read more
Build a 5-year financial projection for a used car lot / dealership.
The Commercial Real Estate Investment Model allows calculating the investor return when investing in commercial real estate property. The financial model is especially helpful when identifying the uplift potential from the non-letted area and assessi... read more
The purpose of the model is to forecast the cash flows in form of a financial model in Excel when starting a new language school or to value an existing language school via Discounted Cash Flow (DCF) analysis.
Restaurant Financial & Business Plan consists of a financial model in excel and a business plan in PowerPoint for the opening of a new restaurant.
This Waterfall Model Template in Excel provides a calculation model for a four tier Private Equity Waterfall profit distribution scheme.
This is an Excel financial model template for a single blockbuster product where the founders need to raise funding from investors to setup production capacity for market launch.
This Model provides a framework to accurately forecast the financial statements of a Construction / Infrastructure company over the next 10 years. The model uses a detailed breakdown to estimate the company’s operating assumptions on order book, bo... read more
A 5-year financial model tailored to starting a golf course and projecting financial performance for its business plan.
Plan out the financial plan your hair or beauty salon. The beauty & hair salon business plan goes up to 10 years and has plenty of granularity.
Are you the one who’s known for making the best birthday cakes? Maybe you have found the perfect donut recipe that makes everyone’s mouths water over the sight of those delicious, juicy buns? It might be time to turn your talent into a profitable... read more
The main purpose of the model is to allows user to easily compare the financial performance result from one period to the next or between actual and budget without having to look at multiple financial statements
Solid Waste Treatment Plant Model is a project finance model for the construction and operations of a waste management plant.
This financial model provides a template financial plan to derive the expected cash flows of a machine rental business over the next 10 years by using a bottom up approach.
A coffee shop is a small business that belongs to foodservice enterprises but stands out from them because of a specific assortment. In addition to the obligatory coffee, among the variety, there are confectionery products that successfully harmonize... read more
Today e-commerce is one of the quickest growing business lines, more and more people are shopping online, and this trend is increasing every year. If you want to start your online store, but don’t know in which direction to choose, online clothing ... read more
This is a collection of financial model templates for businesses in the hospitality industry and its related sectors
A bar is a place where people of any age can relax and enjoy their rest. It is worth noting that there are not so many excellent bars, even in the center of the capital. That is, one can also say that there is a shortage of cozy establishments with a... read more
Advanced Real Estate Model for a professional DCF valuation of Office, Retail or Industrial Properties.
Dynamic financial model for calculating cash splits to sponsors/investors based on various IRR hurdles getting reached.
The Rice Farming Financial Model enables rice farmers and investor to evaluate an investment into a rice farming operation via Discounted Free Cash Flow (DCF) and Internal Rate of Return (IRR) analysis from an investment point of view.
Financial model for a typical project finance solar project.
3 statement 5 year rolling financial projection Excel model for a startup /existing distribution business
Get Hotel and Restaurant financial model templates with the bulk price!
The templates above are created by expert financial modelers who provided industry-specific financial model templates for different users from different countries such as the USA, UK, Canada, Australia, Japan, and many more who are in need of assistance with their financial modeling tasks.