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Posts Tagged ‘Financial plan’

Financ1al a plan or strategy to ensure their future well-being is something that each individual’s work should cover early in life, but that luxury is gone for many years, there is still time for you to start now.

A financial plan is not a plan or strategy on how to spend our income earned from working hard for a boss. Ask your self these questions

1) What I think of when thinking about what to do with the income I spend all my time off? (Holidays, cars, shopping and nightlife)

2) What I think of when thinking about how to improve my income? Therefore, to improve my quality of life! (Loan)

The following is not the answer that you should be coming up with!

quick ways to get what they want!

* Loan from father

* Taking a Loan

* Open an account

* Get a credit card

These are all easy ways to get what we want, give us pleasure. But after the effects are causing the pain. These are quick ways of financial enslavement. Referred pain is pain here to give all your hard earned money, month after month. The best thing to do is say ‘No thanks’ for quick ways to get what you want and find ways to earn their own money.

The best way is to be an entrepreneur, seeking and taking advantage of gaps in the market for products or services. Since these were isolated, proceed to fill the gap with their experience and expertise in their particular field. The good or bad financial rewards received is a direct consequence of the value you provide, to adjust the input value and accordingly.

I am thinking about creating my own service company (will be sole proprietorship) and do not know how to make a financial plan. I can make an estimate of the costs that I will be at the start of activity (local, equipment, advertising, fees for self-employed, etc) but I need to draw a more detailed plan, able to convince potential investors. I do not know how to calculate what I’m going to need to keep the first few months, and I need to predict. I’m blocked, I would appreciate your guidance.
Many greetings!
It is a very complex issue to raise, not so difficult to assess when the lines are well defined.
You have to take into account the monthly expenses you will bear: Payroll. SS, loan repayments, rent, electricity, insurance, telephones, advertising, leasing, rentings, gas, internet, etc. In short, a relationship as comprehensive as possible on each and every one of your expenses are going to be monthly, bimonthly, quarterly or annually, as appropriate.
Please note that quarterly pay VAT, withholding tax and other taxes if applicable.
Become an excel sheet where you put in each column each month and each expense row, entering the amount of each item in your box next to the expense and the month.
Then, estimate of sales you think you can get and distribute for months too. Each company has a cycle, but neither is constant. Thus, a beach restaurant sell much of June through August and will substantially decrease the remaining months. A toy company sells more from October to January and in June, lowering the rest of the year. All companies have a cycle, yours and is estimated to be as honest as possible (it’s okay if a few months out negative, what matters is the final result).
As customers pay 60 or 90 days, take it into account when calculating the fees or expenses for advance Financiers effects. At the same time, negotiate payments to suppliers.
In this way, you get the cash balance each month, positive or negative, and therefore can calculate the funding requirements on a monthly and year-end.

Like any other type of plan a Personal or Family Financial Plan is a logical process which sorts the objectives and steps to achieve them. Importantly, a flexible guide which can be adjusted from time to time to be adapted as far as reality changes. Any plan is a way to chart a path that serves as a compass, but when obstacles or unforeseen things appear is important to change direction.

The Financial Plan is a document that basically explains the goals that an individual has and what are the steps to achieve them. This document is a cover, an index and the contents of the plan. As an example the index of a plan is as follows:

1. Introduction
2. Current Situation
3. Objectives
4. Proposed Plan
5. Implementation
6. Monitoring
7. Conclusion and Appendices

The Financial Planning process can be divided into two parts: planning and Exhibits usually returns a little more depth.

The Planning Process will show the current status of the individual, cited the goals or objectives, and words will the proposed plan, implementation methods and control points or milestones for monitoring the implementation of the plan. These checkpoints or milestones, it could be objective in amounts, ie something like: In one year the accumulated is $ xxxxx.

Annexes, will be responsible for “showing” detail as explained in the preceding paragraphs.

1. Cash flow and future projections (usually 10 years)
2. Patrimonial State and future projections (idem)
3. Investment Plan
4. Retirement Plan
5. Risk Plan
6. Tax Plan
7. Estate Planning

Before starting a business plan are some questions we should consider, and most important is why we set up a business and if we have the personal skills necessary to do so.

I know I’m putting your finger in the eye, but more importantly we are not the business, all businesses operate and fail, we all know as a cafe wins while next door has to close, the business idea is the same The market also … .. Think about it.

It is important to the idea, the business, but more important is the enthusiasm and confidence of the promoters.
Any business or must meet a number of qualities:

* Self-confidence
* Organizational Capacity and Coordination
* Ability to lead and motivate.
* Ability to make decisions and take risks

I’m talking from a business school, and if you realize I have not said anything about training, why? Because the training ensures knowledge but what matters is the person. Read the rest of this entry »

1.  A start-up is usually more slowly than expected. Revenues tend to lag while expenses are always greater than previously estimated. Do your calculations with a large room to spare you any unpleasant surprises.

2.  A growing company can have a great hunger for liquidity to finance growth. WalMart was for years a growing company with negative cash flows (to finance growth). Do not let you leave without liquidity growth by surprise. No matter how well you can not go running out of cash on hand.

3.  If you need external funding to provide capital, looking for professional investors and investment funds. Far better to have outside investors professional individuals.

4.  Hire an auditor and audit your company every year. No matter how small your business, the discipline of the annual audit discipline throughout the accounting team. Read the rest of this entry »

In today’s entry I will make a short introduction to the reason why many people have bad habits with money. In a way I will advise based on techniques or tools that I gave good results. The idea is that you begin to choose among those options that best suit your needs and even create your own financial plan.

* Why do we have financial problems?

Not to the point of talking at the level of the national economy, but rather trying to take as the axis center the subject or the person who has the money, we can say that A or key facto in this process is you. Robert Kiyosaki mentioned in many of his books that people are accustomed to bad money management. At this point I strongly agree with him. But the key question is: What factors contribute to our financial ignorance?

The answer is simple: The financial education that gave us Read the rest of this entry »

One of the important factors when starting to invest is to have a financial plan. A while ago I got on this blog a piece of financial statements to know where he was a stand financially. Before beginning or try to reverse it is necessary to know how the financial situation of each.

After that I created another topic that talked about how to improve personal finances begin to get a little more money, we even have the 9080 rule that I created at the time.

Today will enlarge a little more about the issue of having a financial plan, a key factor when investing. At this point you should know where it stands financially, you should know how to accumulate a little capital to invest and more importantly, should know where to go.

For that is the financial plan. Read the rest of this entry »