Who does not have the dream to become Mark Zuckerberg? Every individual has a dream of owning a business and becoming famous. What is stopping them? Sometimes financial shortages become tough to overcome, and it is the common result of faulty or no financial planning. For a business to succeed, it is important to have a good financial planning in place. Financial planning can be considered the backbone of any business. People not only have a dream to be known as a great business owner, but people love to have a control over their own life. It is true that only 20% of new business succeeds among all the start ups. The reason is either faulty financial planning or no planning at all.

“By failing to prepare, you are preparing to fail.” ― Benjamin Franklin. This is enough to point out the importance of financial planning for a business, whether big or small. Starting any business can be a pretty simple procedure. It is not the starting of the business, but maintaining the business model with variety of planning that becomes the stepping stone to success. Financial planning is one of the important stepping stones for the future success of any business.

Building or creating a successful financial plan is a part of the business itself and so it should be given equal importance along with other dimensions of the business. The several steps that make up a successful financial plan are:

1. The financial plan should include four main forms. These four aspects are the basic requirements for the making of any financial statement. The forms are:

• Statement of personal finance
• Statement of cash flow
• Balance sheet statement
• Statement of income

These statements actually provide the health condition of the business in front of the business owner. These statements actually show the income generated from the business, the expenditures related with the business and ultimately whether the business is gaining profit or losing the plot.

2. Along with the above mentioned four types of documents, the need for supporting documents is also required. Documents that back the claims made in the four main documents discussed in the above points are a necessity. Without such supporting documents, it would be like flying in thin air. These supporting documents may include stock related papers, monthly or yearly statements from banks, tax related statements, ledgers of accounts created and various other receipts that have importance with the financial status of the company. Loans in the Philippines as well as in other countries should have a statement ready to be included in the financial statements of businesses.

3. After making the main documents with the help of all supporting documents, it is time to sit for analyzing. Only putting the data mean nothing unless the data are analyzed to get to the bottom of the story. This analysis is similar to what the lenders or investors or the competitors do to understand the health status of the business. The lenders that give loans in the Philippines to local business owners do a constant analysis of the businesses to which they have lend money.

4. The analysis of financial status and the planning involved should be periodically overhauled according to the business status. This planning cannot be left to be done once in a year. To keep income flowing, the business strategies change and hence the financial planning also changes. So keeping the financial strategies running on its toes is a must.

Financial planning keeps a business always a step ahead of time. If proper financial planning is done, then there is very little chance of a business falling on its face. Loans in the Philippines as well as in many other countries are given out by financial institutions to only those business houses that provide a solid financial planning in front of them. For any sphere of life, getting success depends on initial planning as well as changing the plans as per the need of the hour. People that follow this golden rule of life will succeed in any kind of business they choose to start. So in reality the financial planning is actually the only way to becoming a successful entrepreneur.

Kash Martinez, understands the intrinsic attributes of making excellent content that suits the needs of every business especially when it comes online financing. She can conceptualize and implement marketing plans, explores profitable B2B opportunities and then absorb Loan Solutions PH services.