Learn how to make the financial plan of a business plan

Excel Spreadsheets

O financial plan is the last step of a business plan in which revenue and expense projections will be made and the feasibility of the project being planned from the investment being projected will be measured.

Go back to:
How to make a business plan

More concepts related to financial plan:
What is Discounted Cash Flow?
What is Projected Cash Flow?
How to make an economic and financial feasibility study?
What is and how to calculate NPV (Net Present Value)?
What is and how to calculate the Internal Rate of Return (IRR)?
What is and how to calculate Payback?

In this article we will talk about:

Why Think About the Financial Plan of a Business Plan

If you are thinking of making a business plan, you should keep in mind that the most important part is financial planning. I say this, because ultimately, "it does not matter" what your product is, what market segment you want to achieve or even how you will put it all into practice if you do not have sufficient revenue forecast to allow this or that attractive to potential investors.

Obviously you can not come up with a financial plan for a well done business plan without other information, but thinking about it and how it will materialize is essential.

Business Plan Sheet

You need to keep in mind that the main reason for the bankruptcy of new companies is the lack of business vision to create a good financial structure, planned and directed to the development of the company. This brings us exactly to how to make this plan:

How to make the financial plan in the business plan

To make a good financial planning it is not necessary to be an economist. Simply identify the details of the new business, set goals, consider the resources to be applied in each case and convert them into reality. See the step by step to get to this result:

Step 1: Define the initial investment required

You should coldly analyze the initial investment needed and check all expenses for business deployment such as installation expenses, supplies, electronic equipment, physical headquarters, furniture and everything else that is needed to set up your business.

This number may be small. Let's assume that an entrepreneur needs R $ 50.000 to get their business to run, but only has only $ 30.000.

Business plan financial plan - initial availability

Having this notion will allow him to know exactly what to do before going head-on into the business. In this case, the entrepreneur would have three options:

ask for a loan / investment with a big concern on how the interest would affect the non-operating results of the business

rethink the financial plan by analyzing cost reductions and how that would affect the end result

give up the idea, for having less money than necessary

It may sound cruel, but business life is like this, or you stay alert and make difficult decisions right from the first step or you're doomed to fail.

Business Plan: Step by Step to Create Your Own

Step 2: Make a projection of expenses and revenues

If you have the money needed for the initial step, you need to check what the cost of the business is usually, and this involves projections of expenses and revenues. You must carefully calculate all other costs required and how much you can and will be able to sell throughout this process.

Financial plan in the Business Plan - projections

A big problem is the staggering number of entrepreneurs who tend to be extremely optimistic when making their projections. If you want to get away from this risk, try approaches where you already have business information that works, even if it's embryonic, in beta, or with a capacity below your ultimate goal.

3 Step: Analyze the main feasibility indicators

The indicators are produced based on previously calculated values, in order to monitor the development and growth of your business. Here are the key indicators:

- NPV - Net present value

- TIR - Internal rate of return

- Payback - Time to Recover Investment Made in Business

Depending on the investor, it may be that other indicators such as EBITDA may be required, but in general, if you have these 3, you will have a good idea. An interesting exercise to do at these times is to calculate a possible valuation, since that would give you a good idea of ​​how much to ask in exchange for what percentage of your shares in investment cases.

Business Plan Sheet

Financial Plan in an Excel Business Plan worksheet:

Now that you have understood exactly the step-by-step of how to make a financial plan of a business plan, let's make an example for a machine shop:

Step 1 - Investments

As we talked about here, the first step is to understand how much you will spend on initial investments. In this case of the Mechanic Workshop we will need to calculate the pre-operational investments (before the business starts) and the one-time investments (which are made over the course of the business).

It is important to make this distinction because these expenditures are not operational in nature. Let's see each one of them:

  • Initial Investments

In the case of a workshop, would be spent as the physical space for the business to function, equipment and machinery needed and general office supplies. As an example, we raise the following investments:

- Shed: R $ 150.000 (remembering that it could be a leased shed and the cost enter as rent month to month)

- Car lifts: R $ 15.000

- Tools: R $ 10.000

- Computers R $ 5.000

- Reform of the Warehouse: R $ 20.000

Financial plan in the Business Plan - initial investments

Be careful not to let anything pass.

  • Other investments

Usually these are investments associated with the possible growth of the business. Imagine that the workshop has an increase in revenue and customer service needs to be increased with the purchase of new lifts in the second year. In this case, this cost (R $ 15.000) must enter into your investment flow:

Financial plan in the Business Plan - new investments

Step 2 - Revenue and Expense Projection

  • Fixed costs

Fixed costs are those that occur every month, regardless of variations in service delivery. They are also known as indirect costs, because they are not directly tied to the provision of services or production.

Business Plan: Step by Step to Create Your Own

In our case, from a Mechanic Workshop, we could think of the wages of the mechanics, the pro-labore of the managing partners, the purchase of parts for the vehicles and some other costs. For simplicity, I'll keep these 3, but you need to detail as much as you can:

- 5 employees getting $ 3.000 each - $ 15.000

- 2 members getting R $ 10.000 each - R $ 20.000

- Cost with suppliers in general - R $ 30.000

Financial plan in the Business Plan - fixed costs

  • Revenue projections

So far, there is usually not much difficulty, but when it comes to making the revenue projections there are a lot of people who give that skating and end up being very optimistic. Anyway, the first step is to list your products or services. In our case, we can have the services of electronic injection and motor care; maintenance of the electrical part, installation of air conditioning, sound and the like; maintenance, overhaul, oil or tire replacement, tipping and painting services.

Financial Plan in the Business Plan - Revenue Projection

After listing your services or products, calculate a projection of quantity sold for each of them. Finally, enter the average sales value for the services. This will give you a good approximation of your revenue forecast. See that in the image above you see the average ticket and in another tab of the spreadsheet we had already put the amount of sales year by year.

Business Plan Sheet

3 Step - Analysis of Indicators

  • Consolidated results

Finally, of course, every investor or entrepreneur wants to know if the main indicators of a business plan is making sense. For this, the 3 indicators that I always make it a point to look at are the NPV, IRR and Payback. In the case of our Workshop, the results were as follows:

- VPL - R $ 1.594.593

- TIR - 95%

- Payback - 3 Years

Financial plan in Business Plan - financial result

Of these 3 indicators, the first 2 (NPV and TIR) are positive, which is a sign that the business is promising, but Payback is very high because of the high expenses nature at the beginning of the business. This could be a hindrance to the decision to invest in it. One way to modify this could be by renting a space instead of buying it. There are other ways to modify your metrics and see what works best. This will depend on each case.

  • Graphics

To end our third and final step, it's worth having a graphical analysis of your indicators and a separate dashboard for that.

Financial plan in Business Plan - graphs

By following this up and maintaining a monthly financial report, where all the actual data should be collected, it is possible to compare with the initial financial planning and make the necessary corrections in the company's trajectory.

Business Plan Sheet in Excel:

As you can see, the financial plan is only part of the business plan. If your goal is to present a business plan complete, you need to look at the other most important topics (which will vary from PN to PN):

  • Executive summary
  • Information of the partners / managers
  • Business modeling
  • Marketing plan and market segmentation
  • Strategy and execution plan

Business Plan Sheet

If you only have interest in the financial part, I recommend 2 paths depending on your situation:

  • If you have a business running - Control your finances with a cash flow and make predictions about how your financier may behave in the future. I recommend the Cash Projected Cash Flow Worksheet for this task.
  • If you want to see the viability of a business that does not yet exist - make the same projections of investments, costs and revenues that we speak throughout this article, but using the Economic Feasibility Study Sheet, which deals exclusively with this financial part.

Did you like the tips? Acquire the business plan sheet here and start now the ideal financial planning for your business!

Excel Spreadsheets


  1. Hi, Vanessa, what's your question about the calculations? Did you read our posts explaining how to get in the NPV and the IRR?

  2. hello, good night, I did not quite understand, how to calculate calculus (NPV and IRR), can you help me?

  3. Hi José, this is the goal itself, always evolve and learn from our past mistakes

  4. Hello, I really like calculations and I was very happy to visualize and learn a little more methods and concepts so disciplinary in business plan, I confess that I have already broken several times for lack of planning and disobedience to administrative processes, but I am seeking more and more knowledge to miss less and achieve the much desired success.


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