Financial Planning for New Businesses: A Step-by-Step Guide [Video]

Hello everyone! In this video, I’ll be sharing valuable insights into planning the finances of a new business venture. Join me as I break down the essential steps to manage finances effectively when starting a new business.

Timestamps:
– 0:00 Intro
– 0:45 Assumptions and Planning
– 1:30 Variable Costs and Fixed Costs
– 2:15 Revenue Calculation
– 3:00 Financial Projection and Profit
– 3:45 Conclusion

Let’s dive in! Imagine you’re planning to start a business selling medicinal plants. Even without prior experience, you can make assumptions and plan for the future. I’ll guide you through the process of assuming sales quantities, marketing budgets, salaries, and more.

First, we calculate variable costs such as production costs for plants and pots. These costs vary based on the number of units produced. Next, we consider fixed costs like rent and marketing budgets, which remain constant regardless of sales volume.

After calculating expenses, we estimate revenue by determining the selling price of products and projecting sales quantities. By subtracting total expenses from revenue, we arrive at the projected profit.

This step-by-step financial planning approach helps you anticipate expenses, forecast revenue, and assess the feasibility of your business idea. Whether you’re starting a new venture or expanding an existing one, this method ensures sound financial management.

Thank you for watching, and I hope this video provides valuable insights into planning the finances of your new business.

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