FREE Webinar:

Elevate your business plan with AI. Register Now

How to Write a Small Business Financial Plan

Stairs leading up to a dollar sign. Represents creating a financial plan to achieve profitability.

Noah Parsons

3 min. read

Updated January 3, 2024

Creating a financial plan is often the most intimidating part of writing a business plan. It’s also one of the most vital. Businesses with well-structured and accurate financial statements in place are more prepared to pitch to investors, receive funding, and achieve long-term success.

Thankfully, you don’t need an accounting degree to successfully put your budget and forecasts together. Here is everything you need to include in your financial plan along with optional performance metrics, specifics for funding, and free templates.

  • Key components of a financial plan

A sound financial plan is made up of six key components that help you easily track and forecast your business financials. They include your:

Sales forecast

What do you expect to sell in a given period? Segment and organize your sales projections with a personalized sales forecast based on your business type.

Subscription sales forecast

While not too different from traditional sales forecasts—there are a few specific terms and calculations you’ll need to know when forecasting sales for a subscription-based business.

Expense budget

Create, review, and revise your expense budget to keep your business on track and more easily predict future expenses.

How to forecast personnel costs

How much do your current, and future, employees’ pay, taxes, and benefits cost your business? Find out by forecasting your personnel costs.

Profit and loss forecast

Track how you make money and how much you spend by listing all of your revenue streams and expenses in your profit and loss statement.

Cash flow forecast

Manage and create projections for the inflow and outflow of cash by building a cash flow statement and forecast.

Balance sheet

Need a snapshot of your business’s financial position? Keep an eye on your assets, liabilities, and equity within the balance sheet.

What to include if you plan to pursue funding

Do you plan to pursue any form of funding or financing? If the answer is yes, then there are a few additional pieces of information that you’ll need to include as part of your financial plan.

Highlight any risks and assumptions

Every entrepreneur takes risks with the biggest being assumptions and guesses about the future. Just be sure to track and address these unknowns in your plan early on.

Plan your exit strategy

Investors will want to know your long-term plans as a business owner. While you don’t need to have all the details, it’s worth taking the time to think through how you eventually plan to leave your business.

  • Financial ratios and metrics

With all of your financial statements and forecasts in place, you have all the numbers needed to calculate insightful financial ratios. While these metrics are entirely optional to include in your plan, having them easily accessible can be valuable for tracking your performance and overall financial situation.

Common business ratios

Unsure of which business ratios you should be using? Check out this list of key financial ratios that bankers, financial analysts, and investors will want to see.

Break-even analysis

Do you want to know when you’ll become profitable? Find out how much you need to sell to offset your production costs by conducting a break-even analysis.

How to calculate ROI

How much could a business decision be worth? Evaluate the efficiency or profitability by calculating the potential return on investment (ROI).

  • Financial plan templates and tools

Download and use these free financial templates and calculators to easily create your own financial plan.

research financial plan example

Sales forecast template

Download a free detailed sales forecast spreadsheet, with built-in formulas, to easily estimate your first full year of monthly sales.

Download Template

research financial plan example

Accurate and easy financial forecasting

Get a full financial picture of your business with LivePlan's simple financial management tools.

Get Started

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Noah Parsons

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

research financial plan example

Table of Contents

  • What to include for funding

Related Articles

research financial plan example

24 Min. Read

The 10 AI Prompts You Need to Write a Business Plan

research financial plan example

3 Min. Read

What to include in your business plan appendix

research financial plan example

10 Min. Read

How to set milestones in your business plan

research financial plan example

Describe your company and team

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

Garrett's Bike Shop

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

LivePlan pitch example

Discover the world’s #1 plan building software

research financial plan example

U.S. flag

An official website of the United States government

The .gov means it’s official. Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

The site is secure. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

  • Publications
  • Account settings
  • Advanced Search
  • Journal List
  • J Ayurveda Integr Med
  • v.10(2); Apr-Jun 2019

How to plan and write a budget for research grant proposal?

Medical research can have an enormous positive impact on human health. Health research improves the quality of human lives and society which plays a vital role in social and economic development of the nation. Financial support is crucial for research. However, winning a research grant is a difficult task. A successful grant-winning application requires two key elements: one is an innovative research problem with best probable idea/plan for tackling it and appropriate planning of budget. The aim of the present paper is to give an insight on funding agencies providing funding for health research including traditional Indian medicine (from an Indian perspective) and key points for planning and writing budget section of a grant application.

1. Introduction

Why health science research is important and why should it to be funded? Science and technology innovations and health research can have an enormous impact on human health. They improve public health, quality of human lives, longevity and have made society better [1] , [2] . Healthy humans with better quality of life are crucial for the social and economical development of the nation [3] . Medical research led to the expansion of knowledge about health problems/conditions and their mechanism, risk factors, outcomes of treatments or interventions, preventive measures and proper management. Clinical studies or trials provide important information about the safety and efficacy of a drug/intervention. Innovative basic science research had led to the discovery of new technology, efficient diagnostic and therapeutic devices. So, currently, an effort with multidisciplinary approach is a demand for better understanding of clinical conditions and providing safest health care to the community [2] , [4] .

Whether it is basic or applied, clinical or non-clinical, all research needs financial support. Considering the importance of research in economic growth of a nation, many countries are increasing their budget for research and development in science. A study on impact of GDP (Gross Domestic Product) on research and development in science among Asian countries has found that one who spends more on research has more research outcomes in the form of total number of research documents, citations per documents and h-index [5] . About 95% of the NIH (National Institutes of Health, USA), budget goes directly to research awards, programs, and centers; training programs; and research and development contracts [6] . Total expenditure carried out for research in India is too less than USA and China. Percentage of GDP for research and development in India is 0.88%, while South Korea, USA and China have 4.292%, 2.742 and 2.1% respectively [7] .

Owing to the increasing competition among the researchers, especially the young ones, for their academic growth, preparing and planning a winning research proposal becomes very essential. A successful grant-winning application requires two key elements: (1) innovative research problem with best probable idea/plan for tackling it and (2) appropriate planning of budget. The aim of the present paper is to give an insight on funding agencies (from an Indian perspective) and key points for planning and writing budget section of a grant application.

2. What is the purpose of the budget plan in a grant application?

A budget is the quantitative expression of a financial plan for future expenses on the project in a given period of time [8] . Budget plan is a key element of a grant application. It demonstrates the required cost for the proposed project. It is a prediction of expenses and serves a plan for funders on how the organization will operate the project, spend the money in a given set of period and where their money will go. It shows the funders exactly what they can support and also helps the institution and investigating team in management of the project. Moreover, budget plan requires for accountability [9] .

3. Which are the funding agencies that sponsor health research in India?

Various national and international sponsoring agencies have identified health problems of priority for funding a research. Some of the leading funding agencies providing grant for health research including alternative systems of medicine in India are given in Table 1 . State Universities/deemed Universities also have a provision of funding for medical research.

Table 1

List of funding agencies those promote health research.

4. What constitutes a research project budget?

Proforma of the research grant applications and presentation of budget section may vary among the sponsoring agencies. However, major parts of budget plan in the applications of the above mentioned funding agencies are quite similar. The budget section is broadly divided into two categories: direct and indirect costs.

4.1. Direct costs:

These are the costs incurred specifically to carry out a project [10] . Direct costs include expenses towards personnel, materials, equipments, consumables and travel. These particulars are further categorized into recurring and non-recurring expenses on the basis of their occurrence during the study period. A brief description of the sub-sections under direct cost is given below:

4.1.1. Personnel:

Budget for personnel can be mentioned in this section in case human resources are required for the study and as per funding agency guidelines. Salaries with allowances can be budgeted for human resources such as site manager, research assistant, junior research fellow (JRF), senior research fellow (SRF), research associate, technician, data entry operator and attender. Most of the Indian funding agencies do not have a provision for salaries for the principal investigator (PI) and co-investigators (Co-PI). Ministry of AYUSH [11] and Rajiv Gandhi University of Health Science (RGUHS), Karnataka [12] provide one-time minimal fees for investigators and supporting staff respectively. There is a provision for salaries of investigators in Wellcome trust-DBT India alliance grants [13] .

4.1.2. Recurring expenses:

Recurring expenses are those which are variable and which keep on occurring throughout the entire project duration. Particulars categorized in this category are consumables, chemicals, glasswares, laboratory test charges, diagnostic kits, stationery, prints, photocopies, communication, postage, telephone charges, survey tools, questionnaires, publication charges, reprints, binding etc. Other expenses could be allowances for patients/participants, food charges and physician fees.

4.1.3. Non-recurring expenses:

Non-recurring expenses are those which are one-time in nature or which do not recur at regular intervals. Particulars included in this category are equipments or instruments with its accessories, software's, computer, printer, electrical and electronic items and accessories of the existing instrument in your lab. Percentage of budget allocated for equipment varies among the funding agencies from 25% to 90% of the entire budget. Some of the agencies do not have provision for equipment in budget. Vision Group on Science and Technology allocated their maximum grant (up to 90%) for development of infrastructure of laboratories [14] .

4.1.4. Traveling expenses:

Budget allocated for traveling can be used for attending meetings, conferences, workshops and training programs. Foreign travel is not allowed by any Indian funding agency. Traveling expenses for collection of data, survey and visit to other centers in multicentric study can be budgeted in this sub-section.

4.2. Indirect costs:

These are the costs which cannot be directly attributed to specific expenses of a project, but are required to run a project. It is also termed as overhead charges. Laboratory, electricity, water, library and other facilities are provided by the institution to run a proposed research project. Therefore, a fixed cost (usually) of about 5–15% of the total budget is provisioned as institutional overhead charges which goes to the institution directly. The range may, however, be flexible on the basis of the type of funding agency.

5. Budget justification

Most of the funding agencies require submission of a budget justification with all the items described above. Sometimes it is also called as budget narrative. Explanation of need for each line item in the budget with item-wise and year-wise breakdown has to be provided. Quantification of total costs of each line-item and document cost calculation should be done. When writing a budget justification, it is important to follow the same order as that in an itemized budget. For example, if equipment such as color doppler is required, then justify the need of a device with respect to the proposed methodology of the study. Similarly, for non-recurring expenses, breakdown the consumables item-wise and year-wise with its cost and calculation according to the protocol of the study and justify accordingly.

6. Budget summary

An item-wise and year wise summary of the total budget is usually required in most of the applications. Budget summary outlines the proposed grant and often (most of the format) appears at the beginning of the proposal. It should always be prepared at the end, after the grant proposal has been completely developed. A sample budget summary (as an example) for a proposed study for the duration of three years is shown in Table 2 . In the personnel section, a research fellow salary with allowances is budgeted year-wise. The salary of the research fellow for the first and second year is Rs. 2,30,000 per year (JRF) with an enhancement to Rs 2, 59,000 for the third year (SRF) as per the guidelines of the funding agency. As non-recurring expenses are one time in nature, a budget for equipment was budgeted only for the first year. Under the section of recurring expenses, more budgets are allocated in the second year for consumables because recruitment of subjects in large number will be done during the second year of the proposed study. Similarly, expenses toward travel, investigator fee and other miscellaneous costs year-wise have been budgeted. The emoluments and guidelines on service conditions for research personnel employed in research project by ICMR has been given in reference section [15] , [16] .

Table 2

Sample budget summary (year wise).

7. How to plan a simple research budget?

Planning of the research budget begins with an innovative research question, objectives and design of the study. Before starting to write a budget plan, it is essential to understand the expectations of funding agencies, University/Institute and the team of researchers. It is imperative to keep in mind that the research proposal will be reviewed by both scientific and financial (non-scientific) experts. Hence, the proposal should be prepared in such a way that it can be easily understood by even non-scientific experts.

Firstly, a list of what is essential and would add value for research such as focus of research, primary and secondary outcomes of the study, the source of the sample, study setting, sample design and sample size, techniques used to collect data, method of data analysis and available resources should be made [17] .

Secondly, the instructions, format of the application and rules of the funding agency should be read thoroughly. Budget specifications, limitations of recurring and non-recurring costs, and necessity of budget justification with cost breakdown should be checked. Note that one should not deviate or modify the proforma of the funding agency.

Thirdly, a list of items should be made and categorized into recurring and non-recurring expenses. Breakdown of the budget into item-wise and year-wise with cost calculation should be done. It should be ensured that costs are reasonable, allowable and related to the research proposal, so that the budget appears realistic. Travel expenses should be calculated as per the rules of the funding agency.

Fourthly, item-wise and year-wise justification of the requirement in a same sequence of format should be provided. A well-justified budget can enhance the evaluation of the research proposal by reviewers and funding body.

The last most important part is to review the budget and verify the costs and calculation. It is better, if other research team members can review the budget plan and re-calculate the costs thoroughly. Remember, too high budget and too low budget with respect to the research proposal are suspicious and chances of receiving a grant are less.

Sources of funding

Conflict of interest.

Peer review under responsibility of Transdisciplinary University, Bangalore.

How to Create a Financial Plan Like a Pro

Building a financial plan can help you achieve more of what you want in your life – learn how to do it like a pro.

Create a Financial Plan Like a Pro

woman holding wallet with u.s. $1 paper bills showing

Getty Images

The first thing you need to do is decide where you’re headed. What’s your endgame and what do you hope to be able to achieve with your financial plan?

Are you ready to take the reins of your finances and your life? If so, you're going to need a plan. Here’s a guide to help you create a financial plan like a pro in just eight steps.

1. Define Your Financial Goals

“A financial plan is like building a house. Before putting up any walls or installing countertops, you need to think about what type of house you want,” Steven Gilbert, certified financial planner and founder of financial planning firm Gilbert Wealth, says.

Think in terms of the next year, the next few decades and the rest of your life.

  • Short term : Is there anything you’re hoping to achieve soon, like building an emergency fund, getting out of credit card debt or saving up for a down payment on a car? 
  • Midterm : What are your plans for the next 10 to 20 years? Perhaps you want to save for a down payment on a house or higher education for a child.
  • Long term : Think big picture here. Do you want to save for things like retirement, end of life expenses or a vacation home?

“People who have clear goals are more equipped to work through the steps of a comprehensive plan and put in place the strategies that best fit them and their goals,” Gilbert says.

2. Audit Your Financial Situation 

The next step is to figure out where your finances stand. You’ll need to take stock of your full financial picture, including:

  • Income : List all of your monthly income sources and amounts. 
  • Savings : Determine how much you have in savings, including traditional and high-yield savings accounts , certificates of deposit and money market accounts. 
  • Investments: Write down the types of investments you have, such as standard brokerage, retirement, education, whole life insurance or child investment accounts. Take note of their current balances and estimated growth trajectories.
  • Assets : List your assets and their fair market values. 
  • Expenses : Write down all of your monthly expenses, including rent, car payments, bills, subscriptions, entertainment and miscellaneous spending. 

Next, find the sum for each category; income, savings, investments, assets and expenses. Then, subtract your monthly expenses from your monthly income to find out how much you can save each month.

3. Maximize Your Disposable Income

Analyze your income and expenses to see if there are any opportunities to save. Consider if each expense is necessary and try to find a way to reduce it if it is.

For example, you could shop around to see if you have the best deal on your car and home insurance , cellphone plan and internet service . You may also be able to cut down on expenses like your entertainment and eating out.

Once you optimize your expenses, look at your income: Maybe there's a way you could bump it up. Perhaps you're due for a raise at work or there's a professional development path you could pursue to increase your earnings.

Or, it might be time to explore the job market and see if you’re receiving competitive compensation. Another option is to look into a side gig, like working as a delivery or rideshare driver, online tutor or freelance writer.

4. Develop a Financial Plan That Works for You

With an understanding of how much disposable income you have each month you can begin to reverse engineer your financial goals. For this step, strategize how you can best use your resources.

For example, let’s say you have $1,000 to save each month and your goals include building an emergency fund to cover three months of expenses, saving for a down payment on a house and putting 15% of your income toward retirement.

Amount you're able to save per month : $1,000 Emergency fund goal : $15,000 House down payment : $13,000 Retirement : $8,000 per year

Example Strategy No. 1

If your primary goal is to build your emergency fund as quickly as possible, start by putting $500 per month into your emergency savings and $500 toward retirement.

While your retirement savings would be a little shy of your goal and your house down payment would be on the back burner, you could build your emergency fund in fewer than three years (30 months). Then, you could shift to saving $500 for your house down payment and reach your goal in 26 months.

Example Strategy No. 2

If you want to make sure you hit the $8,000 per year retirement goal, you'd need to save $667 each month, which would leave you with $333 to put toward your other goals. If you decided to split the remainder evenly, you’d hit your emergency fund and house down payment goals in about eight years.

The key here is understanding that you have some leeway – you can decide what’s most important and what can wait.

Not sure what you should prioritize?

“The foundation of most financial plans is the same: Get on a budget, get out of debt, save and invest,” Jay Zigmont, Ph.D., CFP and founder of investment advisory firm Childfree Wealth, says.

When it comes to the saving step, Zigmont says, “Start by saving three to six months of your expenses in an emergency fund held in a high-yield savings account. After you are out of debt and have an emergency fund, work on investing.”

In the end, however, saving will come down to what's most important to you. If you want to prioritize a vacation for next year, bump it up on the list.

It's important to plan for the future but also to live it up a little as you go. Plus, enjoying some of the rewards of saving can help to keep you motivated.

5. Account for Future Scenarios

Next, think about the future and how it will impact your disposable income. For example, are you pursuing a career path that will increase your income over time?

On the other hand, are you planning to stop working in a few years when you have children?

Or, do you typically get a tax refund each year?

Think about how future scenarios like these will factor into your savings ability and goal timelines. Make adjustments to your financial plan as needed.

6. Commit to a Short-Term Savings Goal

Make a plan for the next 90 days. You don’t have to commit to an intimidating year- or decade-long goal – and probably shouldn't. Start with baby steps: Decide how much you’ll save for the upcoming three months and which goals you'll put that money toward.

7. Review Your Progress and Make Adjustments

At the end of the three-month period, review your savings plan. Did you save the amount you planned?

Ask yourself how you’d like to move forward. Do you want to save the same amount for each goal or do you want to make some adjustments?

Once you’ve decided, set your next 90-day goal and follow the plan. Then, rinse and repeat.

8. Adjust as Circumstances Change

At the end of each year, conduct a deeper review of your financial plan. See how much you were able to save throughout the year and check your overall progress. Also, assess your goals to ensure they're still feasible.

For example, if your monthly expenses have increased or decreased you may need to adjust your emergency savings target. Or, if the market’s changed and housing prices have risen or fallen you may need to update your house down payment goal.

Assess your progress and decide what's most important for the coming year. Then, start again with your next 90-day goal.

You Don’t Have to Plan Your Finances Alone

If you feel overwhelmed by the idea of building a financial plan, you don’t have to do it alone.

“Financial planning can be a complicated process depending on how complex your life and finances are, especially if you own a business, so you may want to discuss your plan and goals with a professional,” Andrew Rosen, CFP and president of Diversified LLC, says.

Financial advisors can give you all your options and offer personalized guidance on how to most efficiently reach your goals.

Free Professional Financial Advice

Julie Pinkerton Jan. 25, 2023

Medium wide shot of family with toddler discussing data on laptop with real estate agent while sitting in dining room of home for sale

Tags: financial literacy , money , personal finance , personal budgets , wealth

The Best Financial Tools for You

Credit Cards

research financial plan example

Find the Best Loan for You

research financial plan example

Popular Stories

research financial plan example

Family Finance

research financial plan example

Personal Loans

research financial plan example

Comparative assessments and other editorial opinions are those of U.S. News and have not been previously reviewed, approved or endorsed by any other entities, such as banks, credit card issuers or travel companies. The content on this page is accurate as of the posting date; however, some of our partner offers may have expired.

research financial plan example

Your Money Decisions

Advice on credit, loans, budgeting, taxes, retirement and other money matters.

You May Also Like

What is the oasdi tax.

Geoff Williams March 5, 2024

Best Apps for Selling Used Stuff

Emily Sherman March 4, 2024

Your Guide to Tax Year 2023 Deductions

Jessica Walrack Feb. 29, 2024

Legit Ways to Get Free Money 

Erica Sandberg Feb. 29, 2024

Tax Filing Tips for College Students

Kimberly Lankford Feb. 28, 2024

research financial plan example

Should You Hire a Tax Professional?

Emily Sherman Feb. 28, 2024

research financial plan example

A Guide to Regifting

Erica Sandberg Feb. 27, 2024

research financial plan example

Tax Breaks for Education

Kimberly Lankford Feb. 27, 2024

research financial plan example

About Claiming Mileage Tax Deductions

Maryalene LaPonsie Feb. 27, 2024

research financial plan example

Tax Deductions for the Self-Employed

Jessica Walrack Feb. 26, 2024

research financial plan example

Can You Take the Home Office Deduction?

Kimberly Lankford Feb. 26, 2024

research financial plan example

Start a Small Business 

Erica Sandberg Feb. 23, 2024

research financial plan example

Tax Forms to Gather Before Filing

Geoff Williams Feb. 23, 2024

research financial plan example

Best Ways to Spend Your Tax Refund

Emily Sherman Feb. 22, 2024

research financial plan example

8 Business Books for Entrepreneurs

Jessica Walrack Feb. 22, 2024

research financial plan example

Winning Strategies for Small Businesses

Erica Lamberg Feb. 22, 2024

research financial plan example

National Issues That Impact Your Money

Erica Sandberg Feb. 21, 2024

research financial plan example

Fastest Way to Get Your Tax Refund

Kimberly Lankford Feb. 21, 2024

research financial plan example

Financial Check-ins for Couples

Jessica Walrack Feb. 21, 2024

research financial plan example

IRS Offer in Compromise: What to Know

Emily Sherman Feb. 20, 2024

research financial plan example

Financial Plans: Meaning, Purpose, and Key Components

  • Search Search Please fill out this field.

What Is a Financial Plan?

Understanding a financial plan.

  • When to Create It
  • How to Create It
  • Financial Plan FAQs

The Bottom Line

Liz Manning has researched, written, and edited trading, investing, and personal finance content for years, following her time working in institutional sales, commercial banking, retail investing, hedging strategies, futures, and day trading. 

research financial plan example

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT).

research financial plan example

Ariel Courage is an experienced editor, researcher, and former fact-checker. She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street.

research financial plan example

A financial plan is a document that details a person’s current financial circumstances and their short- and long-term monetary goals. It includes strategies to achieve those goals.

A financial plan can help you to establish and plan for fundamental needs, such as managing life's risks (e.g., those involving health or disability), income and spending, and debt reduction.

It can provide financial guidance so that you're prepared to meet your obligations and objectives. It can also help you track your progress throughout the years toward financial well-being.

Financial planning involves a thorough evaluation of one’s money situation (income, spending, debt, and saving) and expectations for the future. It can be created independently or with the help of a certified financial planner .

Key Takeaways

  • A financial plan documents an individual’s short- and long-term financial goals and includes a strategy to achieve them.
  • The plan should be comprehensive and highly customized.
  • It should reflect an individual’s personal and family financial needs, investment risk tolerance, and plan for saving and investing.
  • Planning in finance starts with a calculation of one’s current net worth and cash flow.
  • A solid financial plan provides guidance over time and serves as a way to track progress toward your goals.

The Fundamentals of Financial Plans

Whether you’re going it alone or with a financial planner, the first step in creating a financial plan is to understand how important it can be to your financial future. It can provide the guidance that assures your financial success.

Start your planning effort by gathering information from your various financial accounts into a document or spreadsheet.

Then make some basic calculations that establish where you stand financially.

You may complete the following steps as an individual or a couple:

Calculate Net Worth

To calculate your current net worth , subtract the total for your liabilities from the total for your assets. Begin by listing and adding up all of the following:

  • Your assets : An asset is property of value that you own. Assets may include a home, a car, cash in the bank, money invested in a 401(k) plan , and other investments accounts.
  • Your liabilities : A liability is something you owe. Liabilities may include outstanding bills, credit card debt, student debt, a mortgage, and a car loan.

Determine Cash Flow

Cash flow is the money you take in measured against the money you spend. To create a financial plan, you must know your income as well as how and when your money is spent.

Documenting your personal cash flow will help you determine how much you need every month for necessities, how much is available for saving and investing, and where you can cut back on spending.

One way to get this done is to review your checking account and credit card statements. Collectively, they should provide a fairly complete history of your income and spending in a wide range of spending categories.

For example, document how much you’ve paid during the year for housing expenses like rent or mortgage payments, utilities, and credit card interest.

Other categories include food, household (including clothing), transportation, medical insurance, and non-covered medical expenses. Still others can include your spending on miscellaneous entertainment, dining out, and vacation travel.

Once you add up all these numbers for a year and divide by 12, you’ll know what your monthly cash flow has been (and where you can improve it).

When establishing your cash flow history, don’t overlook cash withdrawals that may have been used on sundries, from take-out, to shampoo, to sodas. ATM withdrawals can also highlight where you might cut unnecessary spending.

Establish Your Goals

A major part of a financial plan is a person’s clearly defined goals . These may include funding a college education for the children, buying a larger home, starting a business, retiring on time, or leaving a legacy.

No one can tell you how to prioritize these goals. However, a professional financial planner should be able to help finalize a detailed savings plan and specific investing that can help you reach them one by one.

The main elements of a financial plan include a retirement strategy, a risk management plan, a long-term investment plan, a tax reduction strategy, and an estate plan.

Benefits of a Financial Plan

  • A financial plan involves a thorough examination of your income and spending.
  • It can improve your understanding of your financial circumstances at all times.
  • It establishes important short- and long-term financial goals.
  • It clarifies the actions required of you to achieve your various financial goals.
  • A financial plan can focus your attention on important immediate steps, such as reducing debt and building your savings for emergencies.
  • It enhances the probability that you'll achieve financial milestones and overall financial success (however you define it).
  • It can guide your efforts over time and provide a means to monitor your progress.
  • It can keep you out of financial trouble and reduce the stress and worry you may have experienced in the past.

Reasons for a Financial Plan

Financial planning is a smart way to keep your financial house in order. It's a money tool for everyone, regardless of age, earnings, net worth, or financial dreams. It offers individuals a way to document their personal goals and corresponding financial goals. It can keep people on track to meet ongoing financial needs and major financial goals.

When to Create a Financial Plan

A financial plan is always an advantage for those who want to make sure that they manage their finances in ways that are best-suited for them. You can create one at any time, whether you've just joined the workforce or have been working for years.

Beyond that, here are some particular instances that call for the creation and use of a financial plan. They can also serve as signals to adjust existing plans.

  • A new job that results in added income, new expenses, or new opportunities
  • An income change that can affect your ability to pay expenses, pay off debt, or save
  • Major life events such as marriage, children, or divorce that can change financial objectives and spending needs
  • Health adversities that result in re-directing income and spending away from existing goals
  • An income windfall, such as an inheritance or insurance payment, that can affect efforts to reach your financial goals (such as providing more money for investing and debt reduction)

How to Create a Financial Plan

Certain steps are needed to create a financial plan. In addition to calculating your net worth, determining your cash flow, and establishing financial goals, as outlined above, here are additional plan elements/steps to include.

Do It Yourself or Get Professional Help

Decide whether you'll create your financial plan on your own or with the help of a licensed financial planner . While you can certainly build a financial plan, a financial pro can help ensure that your plan covers all the essentials.

Build an Emergency Cash Fund

Based on what your cash flow allows, start setting aside enough money in a liquid account to cover all your expenses for at least 6 months (preferably, for twelve) if you find yourself without income due to unexpected events.

Plan to Reduce Debt and Manage Expenses

If you have debt, the faster and more effectively that you can eliminate it, the better for the growth of your savings, your standard of living, and the achievement of specific financial objectives.

Make it a habit to cut expenses whenever possible so that you can add to your savings. In addition, stay on top of expenses that you know you'll have, such as taxes, so you always meet those obligations on time.

Manage Potential Risks

Your financial well-being can be affected when accidents, health problems, or the death of loved ones strike. Plan to put into place the appropriate insurance coverage that will protect your financial security at such times. This coverage can include home, property , health, auto, disability , personal liability , and life insurance.

Plan to Invest

Take part in a retirement plan at work that automatically deducts contributions from your paycheck. And plan to maximize your tax-advantaged investing with a personal IRA if and when your income allows.

Also, consider how you might allocate any other available income to a taxable investment account that can add to your net worth over time. Your plan for investing should take into account your investment risk tolerance and future income needs.

Include a Tax Strategy

Address the goal of reducing your income taxes with tax deductions, tax credits, tax loss harvesting, and any other opportunities that are legally available to taxpayers.

Consider an Estate Plan

It's important to make arrangements for the benefit and protection of your heirs with an estate plan . The details will depend on your stage in life and whether you're married, have children, or have other legacy goals.

Monitor and Adjust Your Financial Plan

Revisit your plan at least yearly (on your own or with a financial professional) and more often if a change in circumstances affects your financial situation. Keep it working efficiently and effectively by adjusting it as needed.

What Is the Purpose of a Financial Plan?

A financial plan should help you make the best use of your money and achieve long-term financial goals, such as sending your children to college, buying a bigger home, leaving a legacy, or enjoying a comfortable retirement.

How Do I Write a Financial Plan?

You can write a financial plan yourself or enlist the help of a professional financial planner. The first step is to calculate your net worth and identify your spending habits. Once this has been documented, you need to consider longer-term objectives and decide on the ways to achieve them.

What Are the Key Components of a Financial Plan?

Financial plans aren't one-size-fits-all, although the good ones tend to focus on the same things. After calculating your net worth and spending habits, you’ll explore your financial goals and ways to achieve them. Usually, this involves some form of budgeting , saving, and investing each month. To ensure that you live comfortably and financially stress-free for the rest of your life, the areas to focus on include an emergency savings plan, a retirement plan, risk management, a long-term investment strategy, and a tax minimization plan.

A financial plan is an essential planning tool for your financial well-being, now and into the future. It involves setting down the current state of your finances, your various financial goals, and methods that can help you achieve them.

It's never too early or late to create a financial plan. And no matter the amount of money that you have, a financial plan can help you to determine the best way to put it to work so that you can meet your financial needs through all of your life stages.

  • Financial Plans: Meaning, Purpose, and Key Components 1 of 14
  • How To Conduct a Financial Checkup 2 of 14
  • How to Manage Lifestyle Inflation 3 of 14
  • Your Annual Financial Planning Checklist 4 of 14
  • Financial Planning: Can You Do It Yourself? 5 of 14
  • The Importance of Making an Annual Financial Plan 6 of 14
  • What Is Retirement Planning? Steps, Stages, and What to Consider 7 of 14
  • 10 Steps to Financial Security Before Age 30 8 of 14
  • 10 Steps to Retire as a Millionaire 9 of 14
  • Why Should I Pay Myself First? 10 of 14
  • How Can I Budget for Short-Term Expenses and Long-Term Goals? 11 of 14
  • How To Adjust and Renew Your Portfolio 12 of 14
  • Financial New Year's Resolutions You Can Keep 13 of 14
  • How to Conduct a Financial Intervention 14 of 14

TRUSTe

  • Terms of Service
  • Editorial Policy
  • Privacy Policy
  • Your Privacy Choices

research financial plan example

How to Create a Personal Financial Plan (And Reach Your Goals Faster)

We all have goals in life – things like starting a business , buying a house, getting married – but money problems often sneak in and prevent us from achieving these objectives.

And so we are left wishing we had done some financial planning to pay for the necessities and to cover any of life’s unexpected events … and we’d still have enough left to put towards our goals.

If any of this sounds familiar to you, then you probably don’t have a financial plan in place.

At its most basic, a financial plan helps you meet your current financial needs and offers a strategy to achieve future financial stability, so you’re able to move forward with your goals.

In this post, you’ll learn everything you need to know about financial plans. We’ll also share an eight-step process to help you create your own personal financial plan, plus a few templates that can help you save money and time.

Post Contents

What is a Financial Plan?

What is a personal financial plan, step 1: review your current situation, step 2: set short-term and long-term goals, step 3: create a plan for your debts, step 4: establish your emergency fund, step 5: start estate planning, step 6: begin investing in your future, step 7: get protected, step 8: keep track of your plan, daily successful living’s financial plan template, smartsheet’s one-page financial plan template, simply stacie’s printable financial planner, financial plan app options, want to learn more.

research financial plan example

Start selling online now with Shopify

research financial plan example

A financial plan is a roadmap for an individual or a company to reach its goals. 

It takes into your account your existing financial situation and goals, then creates a detailed strategy based on your prioritized objectives, telling you exactly where to spend your money, and when to save. 

→ Click Here to Launch Your Online Business with Shopify

Additionally, financial plans help you prepare for the unanticipated by having you set aside a pot of money. When an unexpected job loss , illness or economic downturn occurs, you can rely on these funds to cover your day-to-day expenses. 

financial plan for emergencies

Essentially, you can use a financial plan to take control of your money such that you can achieve your goals and ease worries you may have about your wellbeing.

In the past, people had to hire a professional to create a financial planner for them. But with the advancements in technology, you should be able to create one on your own. 

It’s pretty easy with a financial plan template, which you can modify to reflect your own goals, cash flow, etc. You’ll find some handy templates you can use, later in the article. 

A personal financial plan is a documented analysis of your personal finances, including your earnings, liabilities, assets, and investments.

Its purpose is to help you assess the feasibility of your personal goals and to understand the steps that you will need to take – money-wise – to accomplish them. 

Your personal financial plan can stretch over weeks, months or years, based on the estimated completion time of your goals.And you can adjust it at any time to reflect new or changing priorities.

How to Create a Personal Financial Plan in 8 Easy Steps 

Making a financial plan could give you more confidence with your cash. Plus, it means fewer nights worrying about those pesky bills. 

The trouble is many people don’t know where to get started. They worry about things like “how much does a financial plan cost?” and assume they need endless professional support.

The good news? It’s never too late (or too early) to start working on your financial plan. Even better – creating a financial plan isn’t as complicated as you’d think. You can even break it down into 8 easy steps, like this:

Before you start the actual “planning” part of the process, you need to know where your journey is going to start. That means checking out what your financial situation is like right now. 

Honestly, everyone could benefit from investing in more frequent financial checkups, but it’s easy to put off looking at your bank statements.

Think about it – when’s the last time you actually looked at all of your payments for gas, electricity, broadband, and Netflix, and figured out what they add up to?

Grab your last 6 to 12 months of bank statements and highlight every regular outgoing expense in one color, then highlight your irregular expenses in another. 

It might be helpful to categorize these costs into personal and “crucial” expenses. Once you’ve got all the right info in front of you, ask yourself:

  • Where can I cut down on spending?
  • How much could I save by switching to a different service?
  • Do I really need all of my “optional” expenses?

how to create a financial plan

Now you have a starting point for your journey to financial freedom. 

The next step is figuring out where you’re going. This is an important component in your “financial plan for dummies” journey. 

Setting solid goals gives you direction and clarity when making decisions about your finances. Your goals will show you if you’re moving in the right direction. 

Ideally, you’ll need your goals to be S.M.A.R.T. This means they’re:

Don’t just say you want to have more money in your savings. Write down a statement that explains exactly what you want to accomplish, such as:

“I want to have at least $2,000 in my savings account by the end of next year.”

Short-term financial goals, like “I’ll put $100 in my savings next month”, keep you motivated by showing constant progress. Long-term goals give you a more consistent direction to move in.

financial plan goal setting

No-one likes thinking about debts – but these are issues that you just can’t ignore if you want to be financially savvy. Personal financial plans can help. 

You can’t make huge progress with your short and long-term goals if your interest and repayments are weighing you down. So figure out how to pay what you owe first. 

Start by creating a plan to get rid of your most problematic debts. These are the expenses that cost the most due to excessive interest rates and fees. Get rid of those as fast as you can. 

If you’re struggling to handle several debts at once, it might help to see whether you can consolidate everything into one, cheaper loan. 

The bottom line is you need to take action and start working towards being debt-free. Remember, debts include everything from immediate issues, like credit cards, to long-term expenses, like student debt . 

An emergency fund is like a financial safety blanket. 

No matter how “prepared” you think you are, there’s always a chance that some unexpected cost will come and sweep you off your feet. 

Emergency funds protect you against things like unexpected illness, suddenly losing your job, or even just a bill that you forgot to pay. 

While the exact amount of emergency funding you have depends on you, it should generally cover about 3 to 6 months’ worth of your fixed expenses. You can also save enough to cover variable expenses like entertainment and food too. 

Emergency funds are beneficial for anyone. However, they’re particularly important if you’re a freelancer , someone with a poor credit score, or someone with variable income. 

When setting up your personal financial plans, make sure you have an emergency fund in place. 

Estate planning is one of those complicated terms that most people ignore – assuming it only applies to wealthy people, or people approaching retirement . 

However, it’s essential that you think about protecting your family when you’re not around. A proper estate plan gives you total peace of mind. 

Estate plans include:

  • Last will and testament
  • Healthcare directives
  • Power of attorney
  • Trust information

This document might also include other clauses for things like final disposition instructions and guardianship nominations. 

Estate planning might not be the best thing you can do with your Friday evening fun-wise, but it will ensure that you’re protected for anything. 

estate planning

The next step is building whatever wealth you already have, so you’re prepared for the future. You can begin focusing on your savings and making investments. 

You might have different plans to suit your short-term and long-term goals. For instance, your short-term financial plan might cover the steps you’re going to take to build wealth now. Your 5-year financial plan might look at things like retirement. 

Investing for retirement is one of the best ways to ensure that you’re ready to tackle the future. When you begin planning for retirement, you’ll need to consider a few variables like:

  • Desired retirement age: When would you like to stop working (be realistic here)
  • Desired lifestyle: What kind of lifestyle do you want? Do you want enough cash to do whatever you like? Then plan for that!
  • Current health: Health is definitely a big contributor to wealth. If you know health problems are likely for you, make sure you’re ready to tackle the issue. 
  • Savings rate: How much are you saving towards the future right now?

If you’re brand-new to investing, seek out some extra support. There are wealth advisors out there that can introduce you to different kinds of investment accounts and vehicles. 

Just as emergency funds protect you from unexpected surprises in life, insurance defends your cash from any unforeseen risks. 

Having the right insurance means that you won’t need to constantly break into your savings every time something goes wrong. For instance, home insurance means that you’re properly protected from things like natural disasters and break-ins. 

Car insurance ensures that if anything goes wrong with your car, you’re ready to jump in and fix the issue – without massive payments. 

Having an emergency fund and making sure you’re insured properly means that you can stay on top of all your savings goals – even when the going gets tough. 

Make a list of all the insurance you might need when planning financial plan components. 

The importance of a financial plan is something you can’t afford to underestimate. 

The more you know about your current financial situation and where you’re headed, the more confident you’ll be in your spending. 

However, getting a financial plan example template and building your own strategy is just the first leg of the journey. You also need to commit to actively tracking your progress. 

Check in every three months or so, and make sure you’re moving in the right direction. A lot can change in your financial situation within just a few weeks. 

Remember to update your plan when significant events occur in your life too. Having a child, getting married, or purchasing a new home will all create new considerations for you to deal with. 

Actively reviewing and updating your plan means that you can enjoy a bullet-proof strategy for reaching your financial goals.

keep updating your financial plan

Financial Plan Example [Templates]

While you can create a financial plan from scratch, it’s always easier and quicker with a template. 

Many financial plan template options are available to help you set up a financial plan. All you need to do is enter the details in their fields. You can also edit or remove fields based on the information you have available. 

Even if you don’t want to use templates, these financial plan examples are a good starting point to learn what real-world plans look like and the specific finances you have to include in the document. 

Here are a few templates:

financial plan template

Daily Successful Living offers a simple template you can use to calculate your net worth. 

You can do this by adding up your assets and then subtracting all of your liabilities. 

Once you have estimated your net worth, you can move onto setting some personal goals. 

net worth estimation

Smartsheet’s free financial plan template lets you create a concise personal finance plan. 

Use it to assess your current financial situation, create a strategy to reach your goals, and use the plan to track progress. 

You can also include details for estate planning or life insurance if needed.

financial plan example

Simply Stacie’s financial planner allows you to lay it all out – month-to-month – to analyze your monthly spending habits compared to what you budgeted. 

If you’re working towards a goal like, say, saving for retirement, it’ll help you find opportunities to cut back and put the money towards your objective.

Keeping track of your money is difficult, especially when you’re unsure of your spending. 

Fortunately, there are budget apps you can use to stay on top of your finances. 

  • Mint : Mint, besides its pleasingly minimal UI, offers a good range of money management tools. These are set around a few different areas, namely expense tracking, credit health, and saving advice tailored to your goals. 
  • Pocketnest : Pocketnest teams up with your bank to take you through different themes of financial planning. After you answer a few questions about your financial hitch, the app walks you through each stage of your plan, giving you to-dos along the way to help address any gaps.
  • YNAB : YNAB offers bank syncing, transaction matching, goal tracking, and more. It can help you prepare for the future by breaking up larger expenses into more manageable, bite-sized amounts. The best expenses are ones you can easily manage.

Each of these apps make creating a financial plan a lot more convenient. Being able to view your income, expenditures, investments, etc. at a glance helps you jot down details much faster than gathering information from individual accounts.

Financial plans aren’t just for people with high income. Anyone can utilize them to identify their goals and create a plan for achieving them. 

If you create a financial plan today, you would be able to work on achieving your life’s goals strategically. 

It doesn’t matter where you stand. The important thing is that you get to fulfill your ambitions while improving your financial stability.

Do you want to start a side hustle , go on a holiday, retire by 40? You decide and then create a personal financial plan for achieving your purpose.

P.S. Life’s going to throw you curveballs that can affect your financial situation. Rather than accepting them as your fate, battle through them. You have the most powerful weapon of them all – your financial plan!

  • 10-Step Formula to Achieve Financial Freedom in 2021
  • 30 Personal Finance Tips You Need to Know
  • Money Blogs: The Best Personal Finance Blogs in 2021
  • Economic Recession: What Steps Can You Take Now?

Oberlo uses cookies to provide necessary site functionality and improve your experience. By using our website, you agree to our privacy policy.

research financial plan example

Business Financial Plan Example: Strategies and Best Practices

Any successful endeavor begins with a robust plan – and running a prosperous business is no exception. Careful strategic planning acts as the bedrock on which companies build their future. One of the most critical aspects of this strategic planning is the creation of a detailed business financial plan. This plan serves as a guide, helping businesses navigate their way through the complex world of finance, including revenue projection, cost estimation, and capital expenditure, to name just a few elements. However, understanding what a business financial plan entails and how to implement it effectively can often be challenging. With multiple components to consider and various economic factors at play, the financial planning process may appear daunting to both new and established business owners.

This is where we come in. In this comprehensive article, we delve into the specifics of a business financial plan. We discuss its importance, the essential elements that make it up, and the steps to craft one successfully. Furthermore, we provide a practical example of a business financial plan in action, drawing upon real-world-like scenarios and strategies. By presenting the best practices and demonstrating how to employ them, we aim to equip business owners and entrepreneurs with the tools they need to create a robust, realistic, and efficient business financial plan. This in-depth guide will help you understand not only how to plan your business finances but also how to use this plan as a roadmap, leading your business towards growth, profitability, and overall financial success. Whether you're a seasoned business owner aiming to refine your financial strategies or an aspiring entrepreneur at the beginning of your journey, this article is designed to guide you through the intricacies of business financial planning and shed light on the strategies that can help your business thrive.

Understanding a Business Financial Plan

At its core, a business financial plan is a strategic blueprint that sets forth how a company will manage and navigate its financial operations, guiding the organization towards its defined fiscal objectives. It encompasses several critical aspects of a business's financial management, such as revenue projection, cost estimation, capital expenditure, cash flow management, and investment strategies.

Revenue projection is an estimate of the revenue a business expects to generate within a specific period. It's often based on market research, historical data, and educated assumptions about future market trends. Cost estimation, on the other hand, involves outlining the expenses a business anticipates incurring in its operations. Together, revenue projection and cost estimation can give a clear picture of a company's expected profitability. Capital expenditure refers to the funds a company allocates towards the purchase or maintenance of long-term assets like machinery, buildings, and equipment. Understanding capital expenditure is vital as it can significantly impact a business's operational capacity and future profitability. The cash flow management aspect of a business financial plan involves monitoring, analyzing, and optimizing the company's cash inflows and outflows. A healthy cash flow ensures that a business can meet its short-term obligations, invest in its growth, and provide a buffer for future uncertainties. Lastly, a company's investment strategies are crucial for its growth and sustainability. They might include strategies for raising capital, such as issuing shares or securing loans, or strategies for investing surplus cash, like purchasing assets or investing in market securities.

A well-developed business financial plan, therefore, doesn't just portray the company's current financial status; it also serves as a roadmap for the business's fiscal operations, enabling it to navigate towards its financial goals. The plan acts as a guide, providing insights that help business owners make informed decisions, whether they're about day-to-day operations or long-term strategic choices. In a nutshell, a business financial plan is a key tool in managing a company's financial resources effectively and strategically. It allows businesses to plan for growth, prepare for uncertainties, and strive for financial sustainability and success.

Essential Elements of a Business Financial Plan

A comprehensive financial plan contains several crucial elements, including:

  • Sales Forecast : The sales forecast represents the business's projected sales revenues. It is often broken down into segments such as products, services, or regions.
  • Expenses Budget : This portion of the plan outlines the anticipated costs of running the business. It includes fixed costs (rent, salaries) and variable costs (marketing, production).
  • Cash Flow Statement : This statement records the cash that comes in and goes out of a business, effectively portraying its liquidity.
  • Income Statements : Also known as profit and loss statements, income statements provide an overview of the business's profitability over a given period.
  • Balance Sheet : This snapshot of a company's financial health shows its assets, liabilities, and equity.

Crafting a Business Financial Plan: The Steps

Developing a business financial plan requires careful analysis and planning. Here are the steps involved:

Step 1: Set Clear Financial Goals

The initial stage in crafting a robust business financial plan involves the establishment of clear, measurable financial goals. These objectives serve as your business's financial targets and compass, guiding your company's financial strategy. These goals can be short-term, such as improving quarterly sales or reducing monthly overhead costs, or they can be long-term, such as expanding the business to a new location within five years or doubling the annual revenue within three years. The goals might include specific targets such as increasing revenue by a particular percentage, reducing costs by a specific amount, or achieving a certain profit margin. Setting clear goals provides a target to aim for and allows you to measure your progress over time.

Step 2: Create a Sales Forecast

The cornerstone of any business financial plan is a robust sales forecast. This element of the plan involves predicting the sales your business will make over a given period. This estimate should be based on comprehensive market research, historical sales data, an understanding of industry trends, and the impact of any marketing or promotional activities. Consider the business's growth rate, the overall market size, and seasonal fluctuations in demand. Remember, your sales forecast directly influences the rest of your financial plan, particularly your budgets for expenses and cash flow, so it's critical to make it as accurate and realistic as possible.

Step 3: Prepare an Expense Budget

The next step involves preparing a comprehensive expense budget that covers all the costs your business is likely to incur. This includes fixed costs, such as rent or mortgage payments, salaries, insurance, and other overheads that remain relatively constant regardless of your business's level of output. It also includes variable costs, such as raw materials, inventory, marketing and advertising expenses, and other costs that fluctuate in direct proportion to the level of goods or services you produce. By understanding your expense budget, you can determine how much revenue your business needs to generate to cover costs and become profitable.

Step 4: Develop a Cash Flow Statement

One of the most crucial elements of your financial plan is the cash flow statement. This document records all the cash that enters and leaves your business, presenting a clear picture of your company's liquidity. Regularly updating your cash flow statement allows you to monitor the cash in hand and foresee any potential shortfalls. It helps you understand when cash comes into your business from sales and when cash goes out of your business due to expenses, giving you insights into your financial peaks and troughs and enabling you to manage your cash resources more effectively.

Step 5: Prepare Income Statements and Balance Sheets

Another vital part of your business financial plan includes the preparation of income statements and balance sheets. An income statement, also known as a Profit & Loss (P&L) statement, provides an overview of your business's profitability over a certain period. It subtracts the total expenses from total revenue to calculate net income, providing valuable insights into the profitability of your operations.

On the other hand, the balance sheet provides a snapshot of your company's financial health at a specific point in time. It lists your company's assets (what the company owns), liabilities (what the company owes), and equity (the owner's or shareholders' investment in the business). These documents help you understand where your business stands financially, whether it's making a profit, and how your assets, liabilities, and equity balance out.

Step 6: Revise Your Plan Regularly

It's important to remember that a financial plan is not a static document, but rather a living, evolving roadmap that should adapt to your business's changing circumstances and market conditions. As such, regular reviews and updates are crucial. By continually revisiting and revising your plan, you can ensure it remains accurate, relevant, and effective. You can adjust your forecasts as needed, respond to changes in the business environment, and stay on track towards achieving your financial goals. By doing so, you're not only keeping your business financially healthy but also setting the stage for sustained growth and success.

Business Financial Plan Example: Joe’s Coffee Shop

Now, let's look at a practical example of a financial plan for a hypothetical business, Joe’s Coffee Shop.

Sales Forecast

When constructing his sales forecast, Joe takes into account several significant factors. He reviews his historical sales data, identifies and understands current market trends, and evaluates the impact of any upcoming promotional events. With his coffee shop located in a bustling area, Joe expects to sell approximately 200 cups of coffee daily. Each cup is priced at $5, which gives him a daily sales prediction of $1000. Multiplying this figure by 365 (days in a year), his forecast for Year 1 is an annual revenue of $365,000. This projection provides Joe with a financial target to aim for and serves as a foundation for his further financial planning. It is worth noting that Joe's sales forecast may need adjustments throughout the year based on actual performance and changes in the market or business environment.

Expenses Budget

To run his coffee shop smoothly, Joe has identified several fixed and variable costs he'll need to budget for. His fixed costs, which are costs that will not change regardless of his coffee shop's sales volume, include rent, which is $2000 per month, salaries for his employees, which total $8000 per month, and utilities like electricity and water, which add up to about $500 per month.

In addition to these fixed costs, Joe also has variable costs to consider. These are costs that fluctuate depending on his sales volume and include the price of coffee beans, milk, sugar, and pastries, which he sells alongside his coffee. After a careful review of all these expenses, Joe estimates that his total annual expenses will be around $145,000. This comprehensive expense budget provides a clearer picture of how much Joe needs to earn in sales to cover his costs and achieve profitability.

Cash Flow Statement

With a clear understanding of his expected sales revenue and expenses, Joe can now proceed to develop a cash flow statement. This statement provides a comprehensive overview of all the cash inflows and outflows within his business. When Joe opened his coffee shop, he invested an initial capital of $50,000. He expects that the monthly cash inflows from sales will be about $30,417 (which is his annual revenue of $365,000 divided by 12), and his monthly cash outflows for expenses will amount to approximately $12,083 (his total annual expenses of $145,000 divided by 12). The cash flow statement gives Joe insights into his business's liquidity. It helps him track when and where his cash is coming from and where it is going. This understanding can assist him in managing his cash resources effectively and ensure he has sufficient cash to meet his business's operational needs and financial obligations.

Income Statement and Balance Sheet

With the figures from his sales forecast, expense budget, and cash flow statement, Joe can prepare his income statement and balance sheet. The income statement, or Profit & Loss (P&L) statement, reveals the profitability of Joe's coffee shop. It calculates the net profit by subtracting the total expenses from total sales revenue. In Joe's case, this means his net profit for Year 1 is expected to be $220,000 ($365,000 in revenue minus $145,000 in expenses).

The balance sheet, on the other hand, provides a snapshot of the coffee shop's financial position at a specific point in time. It includes Joe's initial capital investment of $50,000, his assets like coffee machines, furniture, and inventory, and his liabilities, which might include any loans he took to start the business and accounts payable.

The income statement and balance sheet not only reflect the financial health of Joe's coffee shop but also serve as essential tools for making informed business decisions and strategies. By continually monitoring and updating these statements, Joe can keep his finger on the pulse of his business's financial performance and make necessary adjustments to ensure sustained profitability and growth.

Best Practices in Business Financial Planning

While crafting a business financial plan, consider the following best practices:

  • Realistic Projections : Ensure your forecasts are realistic, based on solid data and reasonable assumptions.
  • Scenario Planning : Plan for best-case, worst-case, and most likely scenarios. This will help you prepare for different eventualities.
  • Regular Reviews : Regularly review and update your plan to reflect changes in business conditions.
  • Seek Professional Help : If you are unfamiliar with financial planning, consider seeking assistance from a financial consultant.

The importance of a meticulously prepared business financial plan cannot be overstated. It forms the backbone of any successful business, steering it towards a secure financial future. Creating a solid financial plan requires a blend of careful analysis, precise forecasting, clear and measurable goal setting, prudent budgeting, and efficient cash flow management. The process may seem overwhelming at first, especially for budding entrepreneurs. However, it's crucial to understand that financial planning is not an event, but rather an ongoing process. This process involves constant monitoring, evaluation, and continuous updating of the financial plan as the business grows and market conditions change.

The strategies and best practices outlined in this article offer an invaluable framework for any entrepreneur or business owner embarking on the journey of creating a financial plan. It provides insights into essential elements such as setting clear financial goals, creating a sales forecast, preparing an expense budget, developing a cash flow statement, and preparing income statements and balance sheets. Moreover, the example of Joe and his coffee shop gives a practical, real-world illustration of how these elements come together to form a coherent and effective financial plan. This example demonstrates how a robust financial plan can help manage resources more efficiently, make better-informed decisions, and ultimately lead to financial success.

Remember, every grand journey begins with a single step. In the realm of business, this step is creating a well-crafted, comprehensive, and realistic business financial plan. By following the guidelines and practices suggested in this article, you are laying the foundation for financial stability, profitability, and long-term success for your business. Start your journey today, and let the road to financial success unfold.

Related blogs

research financial plan example

Stay up to date on the latest investment opportunities

research financial plan example

Book cover

Handbook of Consumer Finance Research pp 103–114 Cite as

Conducting Research in Financial Planning

  • Chris Browning Ph.D. 2 &
  • Michael S. Finke Ph.D. 2  
  • First Online: 31 May 2016

103k Accesses

1 Citations

Financial planning is an emerging profession supported by academic research that explores new planning techniques and understands household financial behaviors. This chapter provides an introduction for scholars who are new to the broad field of financial planning research. We begin by describing the differences between normative and positive research, provide a brief overview of main topic areas and examples of financial planning research, and conclude with an example of a positive research analysis that incorporates behavioral and neoclassical economic theories.

  • Financial planning
  • Household finance
  • Personal finance
  • Research methods

This is a preview of subscription content, log in via an institution .

Buying options

  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
  • Available as EPUB and PDF
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
  • Durable hardcover edition

Tax calculation will be finalised at checkout

Purchases are for personal use only

Agarwal, S., Driscoll, J. C., & Laibson, D. I. (2013). Optimal mortgage refinancing: A closed-form solution. Journal of Money Credit and Banking, 45 (4), 591–622.

Article   Google Scholar  

Ando, A., & Modigliani, F. (1963). The ‘life-cycle’ hypothesis of saving: Aggregate implications and test. American Economic Review, 53 (1), 55–84.

Google Scholar  

Angeletos, G., Laibson, D., Repetto, A., Tobacman, J., & Weiberg, S. (2001). The hyperbolic consumption model: Calibration, simulation and empirical evaluation. Journal of Economic Perspectives, 15 (3), 47–68.

Attanasio, O. P., & Weber, G. (2010). Consumption and saving: Models of intertemporal allocation and their implications for public policy. Journal of Economic Literature, 48 (3), 693–751.

Avery, C., & Turner, S. (2012). Student loans: Do college students borrow too much-or not enough? Journal of Economic Perspectives, 26 (1), 165–192.

Barberis, N., Huang, M., & Santos, T. (2001). Prospect theory and asset prices. Quarterly Journal of Economics, 116 (1), 1–53.

Becker, G. (1965). A theory of the allocation of time. Economic Journal, 75 , 493–517.

Bengen, W. P. (1994). Determining withdrawal rates using historical data. Journal of Financial Planning, 7 (4), 171–180.

Beshears, J., Choi, J. J., Laibson, D., & Madrian, B. C. (2009). The importance of default options for retirement saving outcomes: Evidence from the United States. In Social security policy in a changing environment (pp. 167–195). University of Chicago Press.

Blanchett, D. (2014). Exploring the retirement consumption puzzle. Journal of Financial Planning, 27 (5), 34–42.

Bodie, Z., Treussard, J., & Willen, P. (2007). The theory of life-cycle savings and investing. Federal Reserve Bank of Boston Research Paper no. 07-3.

Brown, J., & Finkelstein, A. (2011). Insuring long term care in the US (No. w17451). National Bureau of Economic Research.

Campbell, J. Y. (2006). Household finance. The Journal of Finance, 61 (4), 1553–1604.

Campbell, J. Y., & Viceira, L. M. (2002). Strategic asset allocation: Portfolio choice for long-term investors . New York: Oxford University Press.

Book   Google Scholar  

Cicchetti, C. J., & Dubin, J. A. (1994). A microeconometric analysis of risk aversion and the decision to self-insure. Journal of Political Economy, 102 (1), 169–186.

Cocco, J. F. (2005). Portfolio choice in the presence of housing. The Review of Financial Studies, 18 (2), 535–567.

Finke, M., Huston, S., & Waller, W. (2009). Do contracts impact comprehensive financial advice? Financial Services Review, 18 (2), 177–193.

Grable, J. E. (2000). Financial risk tolerance and additional factors that affect risk taking in everyday money matters. Journal of Business and Psychology, 14 (4), 625–630.

Gray, J. S. (1998). Divorce-law changes, household bargaining, and married women’s labor supply. The American Economic Review, 88 (3), 628–642.

Guiso, L., Jappelli, T., & Terlizzese, D. (1996). Income risk, borrowing constraints and portfolio choice. The American Economic Review, 86 (1), 158–172.

Hanna, S., Fan, J. X., & Chang, Y. R. (1995). Optimal life cycle savings. Financial Counseling and Planning, 6 , 1–15.

Hoffmann, A., Post, T., & Pennings, J. (2012). Individual investor perceptions and behavior during the financial crisis. Journal of Banking & Finance, 37 (1), 60–74.

Hurst, E. (2008). The retirement of a consumption puzzle . National Bureau of Economic Research Working Paper No. 13789.

Ibbotson, R., Milevsky, M., Chen, P., & Zhu, K. (2007). Lifetime financial advice: Human capital, asset allocation, and insurance . Chicago: CFA Institute.

Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47 (2), 263–291.

Kunreuther, H., & Pauly, M. (2005). Terrorism losses and all perils insurance. Journal of Insurance Regulation, 23 (4), 3.

Laibson, D. (1997). Golden eggs and hyperbolic discounting. The Quarterly Journal of Economics, 112 (2), 443–477.

Loewenstein, G. F., Weber, E. U., Hsee, C. K., & Welch, N. (2001). Risk as feelings. Psychological Bulletin, 127 (2), 267.

Article   PubMed   Google Scholar  

Malmendier, U., & Nagel, S. (2011). Depression babies: Do macroeconomic experiences affect risk taking? The Quarterly Journal of Economics, 126 (1), 373–416.

Markowitz, H. (1952). Portfolio selection. The Journal of Finance, 7 (1), 77–91.

Reichenstein, W. R. (2001). Asset allocation and asset location decisions revisited. The Journal of Wealth Management, 4 (1), 16–26.

Thaler, R. H., & Johnson, E. J. (1990). Gambling with the house money and trying to break even: The effects of prior outcomes on risky choice. Management Science, 36 (6), 643–660.

van Rooij, M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101 (2), 449–472.

Yilmazer, T., & Lyons, A. C. (2010). Marriage and the allocation of assets in women’s defined contribution plans. Journal of Family and Economic Issues, 31 (2), 121–137.

Yuh, Y., & Hanna, S. (2010). Which households think they save? Journal of Consumer Affairs, 44 (1), 70–97.

Download references

Author information

Authors and affiliations.

Department of Personal Financial Planning, Texas Tech University, 1301 Akron Ave., Box 41210, Lubbock, TX, 79409-1210, USA

Chris Browning Ph.D. & Michael S. Finke Ph.D.

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to Chris Browning Ph.D. .

Editor information

Editors and affiliations.

Univ of Rhode Island, Transition Center, Department of Human Development and Family Studies,, Kingston, Rhode Island, USA

Jing Jian Xiao

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer International Publishing Switzerland

About this chapter

Cite this chapter.

Browning, C., Finke, M.S. (2016). Conducting Research in Financial Planning. In: Xiao, J. (eds) Handbook of Consumer Finance Research. Springer, Cham. https://doi.org/10.1007/978-3-319-28887-1_9

Download citation

DOI : https://doi.org/10.1007/978-3-319-28887-1_9

Published : 31 May 2016

Publisher Name : Springer, Cham

Print ISBN : 978-3-319-28885-7

Online ISBN : 978-3-319-28887-1

eBook Packages : Behavioral Science and Psychology Behavioral Science and Psychology (R0)

Share this chapter

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

  • Publish with us

Policies and ethics

  • Find a journal
  • Track your research

Great, you have saved this article to you My Learn Profile page.

Clicking a link will open a new window.

4 things you may not know about 529 plans

Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some juristictions to falsely identify yourself in an email. All information you provide will be used solely for the purpose of sending the email on your behalf. The subject line of the email you send will be “Fidelity.com”.

Thanks for you sent email.

Build a financial plan in 3 easy steps

research financial plan example

Key takeaways

  • Want to feel calm and confident about your financial future? A financial plan may be able to help. The best part is that you can create your own plan without hiring a professional.
  • The first step is to decide what to prioritize based on what matters most to you. Then evaluate the resources you have to put toward your goal and consider how long it may take to reach.
  • Do some math (or use a financial calculator) to see if the amount you have now and the amount you can save over time will allow you to hit that deadline.
  • Are you on track? Then it's on to the next goal. If you aren't quite there, the next steps will be figuring out what it will take, whether it's moving the deadline, saving more—or a little bit of both.

Fidelity Viewpoints

Sign up for Fidelity Viewpoints weekly email for our latest insights.

Financial planning can have a profound impact on your peace of mind and improve your confidence about reaching your goals. 1 But do you need to hire a financial advisor to get all the benefits a financial plan can provide? Not necessarily. If you’re up for the challenge, you can do it yourself—and you may even enjoy it.

What is a financial plan?

A financial plan is a blueprint for managing your money. It's often constructed on some key financial pillars: spending, saving for the future, managing debt, protecting what you already have, and estate planning. But your starting point and the priorities you set are unique to you.

Flexibility is the name of the game when planning because your priorities may change as your life evolves. For instance, you may be focused on paying down debt now and saving money to travel or buy a home. But what if things change unexpectedly? Having a plan in place can help you change course since you'll already know what you need to maintain your current lifestyle, where you stand in regard to your goals, and the safeguards you have in place in the form of insurance and savings.

How to create a financial plan

Technology has enabled some very cool planning tools for the do-it-yourselfer. There are budgeting apps, robo advisors , and slews of financial calculators that can help you reach your goals.

With the right tools and a process for evaluating your situation and identifying what to do next, you can build your own financial plan

To get started, consider the short- and long-term goals you'd like to focus on. For example, you may know you want to retire one day in 20 years or so. But before that you want to build your emergency savings, pay down debt, and send the kids to college. That's a lot to tackle at once, so it can make sense to break it all down into manageable chunks and take it one goal at a time.

Here’s a 3-step process for doing just that.

1. Pick a goal and identify your financial resources

Whether it's a short- or a long-term pursuit, your goal is the destination and your current income, debt Log In Required , and spending Log In Required and savings are the starting points. Identifying how much money you have coming in and going out will show you how much is left over—that’s the money you can save. Taking a close look at your spending can also help identify areas where you could spend less if you want to put more cash toward your goals.

Tip: With Fidelity's planning tools, you can add outside accounts to your planning dashboard so you can see everything in one place and get clear insights into your assets and liabilities.

You should know: Your insurance coverage and estate plan are critical pieces of protection and part of your financial resources. Though you can't spend them, insurance and planning documents like a will can help protect what you have in a worst-case scenario.

Get tactical: Define what you want to work toward. Research has found that having a specific goal in mind can help improve your odds of success versus a vague commitment to save more or spend less. 2 You can even create a goal and name it in Fidelity’s plan summary . You’ll also be able to add as many goals as you like, see where you stand, and track your progress.

But let's just start with one. Saving for retirement is a goal for many of us but who has time to figure it all out?

To start a retirement savings plan, go to the Fidelity website and navigate to the planning summary tab Log In Required (login required). (You can do this on the Fidelity app as well.) Add a retirement goal and answer a few quick questions to get started. The questions will help you progress through the planning steps. At the end, you'll see where you stand with your goal, plus suggestions on next steps to help reach your goal.

planning summary page graphic

2. Evaluate where you stand

Now that you have all of your financial details in one place, evaluate your entire financial picture with your goals.

This should help you see how achievable your goals are and gauge the progress you’re making toward them. Just seeing everything in one place can help you set your priorities and move on to the next phase of planning.

Back to our retirement example, once Fidelity’s planning tool has your goal and your resources in place, it can estimate what you could have, and what you likely need, in retirement. We'll start with your full Social Security retirement age but you can set a target retirement age. Then you'll get an estimate of how much money you may have in retirement and how much you may spend. If the numbers don't look right, you can adjust them.

Finally, you'll get an estimate of your potential monthly income in retirement and any surplus or shortfall you may have.

Retirement outlook graphic

Of course, most people have more than one savings goal. Some of them may be short term—taking a vacation or making some home improvements—while others are long term, like retirement or sending the kids to college. Fidelity’s tool allows you to set multiple goals, and align your resources to them to give you a fuller picture. For now, the retirement goal is the only goal that will show a shortfall or surplus chart.

3. Taking the next steps

A clear snapshot of your full financial picture can help you understand how much money you have versus what you may need. If you're on track toward one or more goals, celebrate and start conquering another one if you're ready. If you feel behind or unclear about what to focus on next, we can help you stay focused on what matters to you.

Not on track? It may be counterintuitive, but finding out that your savings are lacking can be a good thing. It gives you the chance to improve your situation and puts you in the driver's seat. You may have several options to catch up: You could save more money, save for a longer period of time, and evaluate investment options that could help.

See Fidelity’s suggestions for prioritizing debt, savings, and goals, read Viewpoints on Fidelity.com: How to balance debt, saving, and investing

And remember, if it was easy, no one would need a plan. But life and finances can be complicated. A flexible plan can simplify the way forward, show you what you need to do, and help you shift gears when your priorities change.

Ready to start saving or investing?

Choose from a variety of different accounts to help you meet your goals.

More to explore

Create a free plan for what matters, how fidelity can help, subscribe to fidelity viewpoints ®, looking for more ideas and insights, thanks for subscribing.

  • Tell us the topics you want to learn more about
  • View content you've saved for later
  • Subscribe to our newsletters

We're on our way, but not quite there yet

Oh, hello again, thanks for subscribing to looking for more ideas and insights you might like these too:, looking for more ideas and insights you might like these too:, fidelity viewpoints ® timely news and insights from our pros on markets, investing, and personal finance. (debug tcm:2 ... decode crypto clarity on crypto every month. build your knowledge with education for all levels. fidelity smart money ℠ what the news means for your money, plus tips to help you spend, save, and invest. active investor our most advanced investment insights, strategies, and tools. insights from fidelity wealth management ℠ timely news, events, and wealth strategies from top fidelity thought leaders. women talk money real talk and helpful tips about money, investing, and careers. educational webinars and events free financial education from fidelity and other leading industry professionals. fidelity viewpoints ® timely news and insights from our pros on markets, investing, and personal finance. (debug tcm:2 ... decode crypto clarity on crypto every month. build your knowledge with education for all levels. fidelity smart money ℠ what the news means for your money, plus tips to help you spend, save, and invest. active investor our most advanced investment insights, strategies, and tools. insights from fidelity wealth management ℠ timely news, events, and wealth strategies from top fidelity thought leaders. women talk money real talk and helpful tips about money, investing, and careers. educational webinars and events free financial education from fidelity and other leading industry professionals. done add subscriptions no, thanks. saving and budgeting investing for income preparing for retirement saving for retirement living in retirement 1. fidelity investments' retirement mindset study presents the findings of an online survey, consisting of 1,429 adults, 23 to 74 years of age and older. fielding for this survey was completed between february 25, 2019, and march 2, 2019, by brookmark research services, which is not affiliated with fidelity investments. the results of this survey may not be representative of all adults meeting the same criteria as those surveyed for this study. the margin of error is +/- 2.6% at the 95% confidence level. 2. locke, edwin; latham, gary; a theory of goal setting & task performance; the academy of management review; 04/01/1991; www.researchgate.net/publication/232501090_a_theory_of_goal_setting_task_performance. keep in mind that investing involves risk. the value of your investment will fluctuate over time, and you may gain or lose money. past performance is no guarantee of future results. diversification and asset allocation do not ensure a profit or guarantee against loss. important: the projections or other information presented regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. results may vary each time your analysis is run and over time. fidelity does not provide legal or tax advice. the information herein is general in nature and should not be considered legal or tax advice. consult an attorney or tax professional regarding your specific situation. fidelity brokerage services llc, member nyse, sipc , 900 salem street, smithfield, ri 02917 1065294.1.0 mutual funds etfs fixed income bonds cds options active trader pro investor centers stocks online trading annuities life insurance & long term care small business retirement plans 529 plans iras retirement products retirement planning charitable giving fidsafe , (opens in a new window) finra's brokercheck , (opens in a new window) health savings account stay connected.

research financial plan example

  • News Releases
  • About Fidelity
  • International
  • Terms of Use
  • Accessibility
  • Contact Us , (Opens in a new window)
  • Disclosures , (Opens in a new window)
  • Find a Branch
  • Schwab Brokerage 800-435-4000
  • Schwab Password Reset 800-780-2755
  • Schwab Bank 888-403-9000
  • Schwab Intelligent Portfolios® 855-694-5208
  • Schwab Trading Services 888-245-6864
  • Workplace Retirement Plans 800-724-7526

... More ways to contact Schwab

  Chat

  • Schwab International
  • Schwab Advisor Services™
  • Schwab Intelligent Portfolios®
  • Schwab Alliance
  • Schwab Charitable™
  • Retirement Plan Center
  • Equity Awards Center®
  • Learning Quest® 529
  • Mortgage & HELOC
  • Charles Schwab Investment Management (CSIM)
  • Portfolio Management Services
  • Open an Account

8 Keys to Good Financial Plans

null

While there are many ways to go about developing a financial plan—do it yourself, use a robo-advisor, work with a financial planner, or a combination thereof—Schwab has identified eight critical components every plan should include, regardless of the method used to create it. So, what does a good financial plan look like?

1. Setting financial goals

You can't make a financial plan until you know what you want to accomplish with your money—so whether you're creating it yourself or working with a professional, your plan should start with a list of your goals, both big and small, and the time horizons to accomplish them. Doing so can help to organize each objective by how soon you'll need the money:

  • Short-term goals are those you hope to achieve in the next five years, such as paying off debt or building an emergency fund.
  • Medium-term goals are those you hope to achieve in the next five to 10 years, such as the down payment on a home or starting your own business.
  • Long-term goals are those that are 10 or more years away, including saving for college and, of course, retirement.

For each goal, specify a dollar figure and a target date. "The more specific your goals, the easier it is to measure your progress toward them," said Rob Williams, managing director of financial planning at the Schwab Center for Financial Research.

A host of online tools can help you run the numbers, weigh competing priorities, and determine the best course of action for you. Also, if you have multiple goals to work toward, a robo-advisor, or automated investing platform, can help you weigh the importance of each goal, ranking them by needs, wants, and wishes.

Any time is a good time to establish a financial plan.

Ideally, you start investing for financial goals early in life, but any time is a good time to check in on your current financial situation and assess how you're doing. Are you still on track? Do you have other goals you hadn't previously considered? Having a financial plan helps you assess where you are today and where you want to go next.

2. Net worth statement

Knowing your net worth today can serve as a baseline for framing your financial goals and setting a target for your net worth at some point in the future, like in retirement. To determine your net worth, make a list of all your assets (bank and investment accounts, real estate, valuable personal property) and another one of all your debt (credit cards, mortgages, or student loans). Your assets minus your liabilities equals your net worth.

"Don't be discouraged if your liabilities outweigh your assets," Rob said. "That's not uncommon when you're just starting out—especially if you have a mortgage and student loans."

3. Budget and cash flow planning

Your budget is really where the rubber meets the road, planning-wise. It can help you determine where your money is going each month and where you can cut back to meet your goals.

A budget calculator can help ensure you don't overlook irregular but important expenses, such as car repairs, out-of-pocket health care costs, and real estate taxes. As you're compiling your list, separate your expenses into two buckets: must-have items like groceries and rent, and nice-to-haves like eating out and gym memberships.

When considering how your goals fit into your budget, you may want to pressure-test it using "what if" scenarios: What if you want or need to retire earlier? What if you downsized your mortgage? Some robo-advisors offer tools that allow you to adjust certain assumptions to see how they could affect your savings strategy.

4. Debt management plan

Debt is sometimes treated like a four-letter word, but not all debt is bad debt. A mortgage, for example, can help build equity—and boost your credit score in the bargain. High-interest consumer debt like credit cards, on the other hand, can weigh heavily on your credit score. Plus, every dollar you pay in finance charges and interest is one you can't put toward other goals.

If you have high-interest debt, make sure you create a plan that can help you pay it off as quickly as possible. If you're not sure where to start, a financial advisor can help you prioritize, then determine how much of your budget should go toward your debt each month.

5. Retirement plan

An old guideline says you'll need approximately 80% of your present income in retirement. However, this assumes that retiring will free you from any work-related expenses, that you've paid off your mortgage, that any children will be financially independent, and you'll likely fall into a lower tax bracket.

It's also important to keep in mind that Medicare doesn't cover everything, and health care expenses that Medicare doesn't cover—such as long-term care—can add up quickly. You also might spend more on other things in retirement, like travel, dining out, gifts, or financial support to a relative or friend.

Plugging in different scenarios into a retirement savings calculator can help you figure out what you may need in retirement. 

Don't count on the 80% rule 

If you're saving 20% – 30% of your pre-retirement income, then the 80% income-replacement rule is a good place to start. Otherwise, it's safer to aim at covering 100% of your pre-retirement income, minus whatever you're saving for retirement . As with any general rule, there are plenty of exceptions. So be sure to sit down and fine-tune your retirement budget as the time draws near. This should be your top priority because you can borrow for most other goals but not for retirement.

6. Emergency funds

When something unexpected happens—say you lose your job or get hit with an unexpected medical bill—an emergency fund can help you avoid tapping your long-term savings to make ends meet.

It's generally a good idea to save enough to cover at least three months'—but ideally six months'—worth of essential living expenses (for example, groceries, housing, transportation, and utilities). Save this money in a checking or savings account so you can access it in a hurry should the need arise.

7. Insurance coverage

Insurance is an important part of protecting your financial downside—but try to ensure you're not overpaying for coverage you don't need and make sure to cover all your bases:

  • Health insurance : Without it, even routine care can cost a pretty penny, while a serious injury or hospital stay could set you back tens of thousands of dollars. As you get older, you may want to consider long-term care insurance , as well.
  • Disability insurance : This coverage protects you and your family in case you're unable to work. Employer-provided disability insurance typically replaces about 60% of your salary.
  • Auto and homeowners'/renters' insurance : If you own a car or home—or rent and can't afford to replace possessions out of pocket—make sure you're adequately protected.
  • Life insurance : This is generally a good idea for those with dependents. Work with an insurance agent to understand what type of—and how much—coverage makes the most sense for you.

8. Estate plan

At a minimum, most people want a will in place, which states your final wishes with regards to your assets, dependents, and who you want to administer your estate. You should also keep the beneficiaries of your insurance policies and retirement accounts up to date. Also consider establishing powers of attorney for financial and health care decisions, in case you become incapacitated.

For help getting started or tackling more complex estate-planning tasks, consider working with an estate attorney or a qualified financial planner.

Learn more about financial planning

5 times in life when financial planning matters most.

SlideTeam

Researched by Consultants from Top-Tier Management Companies

Banner Image

Powerpoint Templates

Icon Bundle

Kpi Dashboard

Professional

Business Plans

Swot Analysis

Gantt Chart

Business Proposal

Marketing Plan

Project Management

Business Case

Business Model

Cyber Security

Business PPT

Digital Marketing

Digital Transformation

Human Resources

Product Management

Artificial Intelligence

Company Profile

Acknowledgement PPT

PPT Presentation

Reports Brochures

One Page Pitch

Interview PPT

All Categories

Top 7 Financial Plan Templates with Examples and Samples

Top 7 Financial Plan Templates  with Examples and Samples

Prachi Soni

author-user

A financial plan is indispensable for both individuals and corporations. A well-crafted financial plan serves as a road map for achieving financial goals, managing income and expenses, and making sound investment, savings, and budgeting decisions.

Creating a financial plan from scratch, however, is a scary task. This is when financial plan templates come in handy. 

As the starting point for a prosperous financial path, this article will examine the top seven financial plan templates, examples, and samples.

Each of the templates is 100% customizable and editable. The content-ready nature provides you with a starting point and a structure, the editability feature ensures the presentation can be tailored to unique audiences. 

Seven Comprehensive Financial Plan Templates to Meet Objectives

Discover the key to financial success with our carefully curated selection of top seven financial plan templates, with real-life examples and samples. From budgeting and saving strategies to investment plans and retirement goals, each template offers a comprehensive framework tailored to specific financial objectives.

Template 1: Financial Planning PowerPoint Presentation Slides

A Financial Planning PowerPoint Presentation Slides Template helps presenters create an engaging and visually compelling presentation on budgeting, financial strategies, retirement planning, risk management, and more. By using this slide in your presentations on topics related to financial management, you will be able to save time and reduce required effort. Use this presentation template to showcase your expertise in 12 major segments of finance, including time value of money, inventory management, financial risk management and KPIs and dashboards that depict whether your financial plan worked or not .  Master financial statements like those on income, cash flow and undertake a trend analysis as well. Even ratio analysis is covered. Take your financial planning presentations to the next level! Download this presentation template today!

Financial Planning

Download Now!

Template 2: Financial Planning PowerPoint Template Bundles

Pitch yourself using this PPT slide to engage buyer personas and increase brand awareness. Due to the excellent graphics and content, these Financial Planning PowerPoint Template Bundles are perfect for interacting with your audience. This helps you present your financial planning and related topics effectively. Our ready-to-use slides are helpful for large and small companies. With these slides, you can easily explain your actual and budgeted expenses and income. Download it right away without any more delay.  

Financial Planning

Download Now

Template 3: Financial Planning Process Trusting Relationship Finance Information Analysis

This template provides a comprehensive framework for presenting fundamental concepts and steps involved in financial planning. It includes visually appealing slides covering goal setting, data collection, risk assessment, investment analysis, review & reports, and monitoring progress. Moreover, this template emphasizes trusting relationships with clients or stakeholders. Download now and become a standout presenter in the world of finance!

Financial Planning Process

Template 4: Evaluating Company Overall Health with Financial Planning and Analysis PowerPoint 

This PowerPoint template will boost your financial analysis presentations. This extensive deck covers many crucial financial planning and analysis topics. Introduce financial planning and your financial planning and analysis team. This template lets you demonstrate your expertise in assessing a company's financial health and providing insights for informed decision-making. Download now to enhance financial planning and analysis presentations.

Evaluating Company Overall Health with Financial Planning and Analysis

Template 5: Financial Planning and Analysis Guide for Small and Large Businesses PowerPoint  Presentation Slides

Chief financial officers (CFOs) will glean and provide pertinent business insights to their CEOs and other stakeholders for informed decision-making, where the role of money is significantly important. This is where our financial planning and analysis presentation comes into play. It will help businesses track financial health of their organizations and provide reliable guidance to business executives. The slides within the template are designed to be informative, visually appealing, and easy to understand . Download our expertly-crafted template and lead your company to more excellent financial health and success!

Financial Planning and Analysis Guide for Small and Large Businesses

Download Here

Template 6: Client-Centric Financial Planning Process PowerPoint Presentation Slides

Professionally designed to illustrate the client-centric financial planning process, the "Client-Centric Financial Planning Process PowerPoint Presentation Slides" are available for your next presentation. The purpose and benefits of financial planning are outlined in our PowerPoint presentations, which may be used to brief personnel. Professionals may wow clients with their ability to assess their needs, coordinate their efforts, and deliver customized, bespoke financial solutions using these slides in their presentations. Download our PowerPoint Presentation today to impress your audience!

CLIENT CENTRIC FINANCIAL PLANNING PROCESS

Template 7: Financial Planning in Healthcare PPT Presentation Slides

Use this slide to implement best practices and establish monitoring criteria. Use our hospital budget planning PPT Templates to showcase latest financial trends in the healthcare sector, including value-based payments, data analytics, and upgraded financial leadership models. Compare current healthcare costs to future projections. Drive economic efficiency and stay ahead in the ever-evolving healthcare landscape. Download now and revolutionize your healthcare financial planning presentations.

Financial planning in healthcare

TAKE CONTROL OF YOUR FINANCIAL FUTURE

This blog post reviewed top seven financial plan templates with examples. It improves financial planning for individuals and businesses. These templates can accommodate many needs and interests with features like thorough financial analysis and client-focused methods.

Remember that you need a sound financial plan to meet your financial goals, lower risk, and secure your future. It aids decision-making, adaptability, and financial success.

Choose the most effective option, make it your own so you can achieve your goals, and make the most of your financial planning procedure.

Take control of your financial future today! Discover the essential steps of personal financial planning and unlock the key to financial security. Download our comprehensive guide on How to Do Personal Financial Planning to Secure Your Future .

FAQs on Financial Plan Templates

What is a financial plan example.

A financial plan example is a sample or template demonstrating how a comprehensive financial plan is structured and organized. It includes components and sections that covers varied aspects of personal or business finances.

What are the seven categories of a financial plan?

A comprehensive financial plan covers many critical areas of a person’s or organization’s financial goals and plans. Seven financial plan types are:

  • Cash Flow Management : A stable financial situation is maintained by making a budget, keeping track of income and spending, and managing cash flow.
  • Includes insurance , money for emergencies, and planning to manage risks, if something goes wrong. 
  • Investment planning is the process of deciding how to make money through investments based on goals, risk tolerance, and time frame.
  • Planning for retirement : Retirement planning is calculating how much money you’ll need to retire comfortably, planning out how you'll spend your time in retirement, and sticking to that plan.
  • Tax Planning : Tax deductions, tax credits, and tax structures that are easy to understand can help lower your tax bill.
  • Estate planning includes using wills, trusts, and powers of attorney to give away assets after death and keep taxes as low as possible.
  • Financial Goals and Objectives : In this area, you can set financial goals like buying a home, paying for school, or starting a business and plan to reach them.

What are the five components of a financial plan?

A financial plan usually comprises a few essential parts that work together to make a complete plan for reaching financial goals. These are: 

  • Financial Goals : Clear financial goals give the plan direction and a reason for being. Some goals are short-term, like paying off debt, and some are long-term, like saving for retirement or a child's college. 
  • Budgeting and Cash Flow Management : Making a budget help keep track of income and spending, which lets people or groups use their resources in the best way possible. By looking at cash flow, you can see where you can save money, pay down debt, and build an emergency fund.
  • Risk management : This part concerns keeping yourself safe from possible threats and uncertainties. It involves figuring out what kind of insurance you need (e.g., life, health, property), checking what you already have, and thinking about ways to reduce financial risks, like emergency funds and backup plans.
  • Planning for investments means coming up with a plan to make money grow over time. This part looks at risk tolerance, time frame, and financial goals to determine the right asset allocation and investment tools (like stocks, bonds, and mutual funds). 
  • Planning for retirement : Planning for retirement ensures you have enough money when you stop working. It involves figuring out how much money you will need in retirement, how much you can save, how much you can contribute, and choosing retirement accounts like 401(k)s and IRAs.

Related posts:

  • Top 10 Business Development Strategy Templates with Samples and Examples
  • Top 5 Business Plan Timeline Template with Samples and Examples
  • Top 10 Product Launch Timeline Template with Examples and Samples
  • Top 7 Corporate Strategy Templates with Samples and Examples

Liked this blog? Please recommend us

research financial plan example

Must-have Weekly Goals Templates with Samples and Examples

Top 5 Internal Audit Report Templates with Samples and Examples

Top 5 Internal Audit Report Templates with Samples and Examples

This form is protected by reCAPTCHA - the Google Privacy Policy and Terms of Service apply.

digital_revolution_powerpoint_presentation_slides_Slide01

Digital revolution powerpoint presentation slides

sales_funnel_results_presentation_layouts_Slide01

Sales funnel results presentation layouts

3d_men_joinning_circular_jigsaw_puzzles_ppt_graphics_icons_Slide01

3d men joinning circular jigsaw puzzles ppt graphics icons

Business Strategic Planning Template For Organizations Powerpoint Presentation Slides

Business Strategic Planning Template For Organizations Powerpoint Presentation Slides

Future plan powerpoint template slide

Future plan powerpoint template slide

project_management_team_powerpoint_presentation_slides_Slide01

Project Management Team Powerpoint Presentation Slides

Brand marketing powerpoint presentation slides

Brand marketing powerpoint presentation slides

Launching a new service powerpoint presentation with slides go to market

Launching a new service powerpoint presentation with slides go to market

agenda_powerpoint_slide_show_Slide01

Agenda powerpoint slide show

Four key metrics donut chart with percentage

Four key metrics donut chart with percentage

Engineering and technology ppt inspiration example introduction continuous process improvement

Engineering and technology ppt inspiration example introduction continuous process improvement

Meet our team representing in circular format

Meet our team representing in circular format

Google Reviews

research financial plan example

  • Business Plan Builder

Financial Forecasting

  • Canvas Modeling
  • Product Tour
  • Business Consultants and Advisors
  • Entrepreneurs And Small Businesses
  • Accelerators & Incubators
  • Educators & Business Schools
  • Students & Scholars
  • Sample Business Plans
  • business plan course

Strategic Canvas Templates

  • E-Books, Guides & More
  • Success Stories

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Upmetrics

  • 400+ Sample Business Plans

Business Plan Course

E-books, Guides & More

  • WHY UPMETRICS?

Customers Success Stories

Business Planning

AI Assistance

See How Upmetrics Works  →

Stratrgic Planning

Business consultants

Entrepreneurs and Small Business

Accelerators and Incubators

Educators & Business Schools

Students & Scholars

  • Sample Plans

How to Prepare a Financial Plan for Startup Business (w/ example)

Financial Statements Template

Free Financial Statements Template

Ajay Jagtap

  • December 7, 2023

13 Min Read

financial plan for startup business

If someone were to ask you about your business financials, could you give them a detailed answer?

Let’s say they ask—how do you allocate your operating expenses? What is your cash flow situation like? What is your exit strategy? And a series of similar other questions.

Instead of mumbling what to answer or shooting in the dark, as a founder, you must prepare yourself to answer this line of questioning—and creating a financial plan for your startup is the best way to do it.

A business plan’s financial plan section is no easy task—we get that.

But, you know what—this in-depth guide and financial plan example can make forecasting as simple as counting on your fingertips.

Ready to get started? Let’s begin by discussing startup financial planning.

What is Startup Financial Planning?

Startup financial planning, in simple terms, is a process of planning the financial aspects of a new business. It’s an integral part of a business plan and comprises its three major components: balance sheet, income statement, and cash-flow statement.

Apart from these statements, your financial section may also include revenue and sales forecasts, assets & liabilities, break-even analysis, and more. Your first financial plan may not be very detailed, but you can tweak and update it as your company grows.

Key Takeaways

  • Realistic assumptions, thorough research, and a clear understanding of the market are the key to reliable financial projections.
  • Cash flow projection, balance sheet, and income statement are three major components of a financial plan.
  • Preparing a financial plan is easier and faster when you use a financial planning tool.
  • Exploring “what-if” scenarios is an ideal method to understand the potential risks and opportunities involved in the business operations.

Why is Financial Planning Important to Your Startup?

Poor financial planning is one of the biggest reasons why most startups fail. In fact, a recent CNBC study reported that running out of cash was the reason behind 44% of startup failures in 2022.

A well-prepared financial plan provides a clear financial direction for your business, helps you set realistic financial objectives, create accurate forecasts, and shows your business is committed to its financial objectives.

It’s a key element of your business plan for winning potential investors. In fact, YC considered recent financial statements and projections to be critical elements of their Series A due diligence checklist .

Your financial plan demonstrates how your business manages expenses and generates revenue and helps them understand where your business stands today and in 5 years.

Makes sense why financial planning is important to your startup, doesn’t it? Let’s cut to the chase and discuss the key components of a startup’s financial plan.

Say goodbye to old-school excel sheets & templates

Make accurate financial plan faster with AI

Plans starting from $7/month

research financial plan example

Key Components of a Startup Financial Plan

Whether creating a financial plan from scratch for a business venture or just modifying it for an existing one, here are the key components to consider including in your startup’s financial planning process.

Income Statement

An Income statement , also known as a profit-and-loss statement(P&L), shows your company’s income and expenditures. It also demonstrates how your business experienced any profit or loss over a given time.

Consider it as a snapshot of your business that shows the feasibility of your business idea. An income statement can be generated considering three scenarios: worst, expected, and best.

Your income or P&L statement must list the following:

  • Cost of goods or cost of sale
  • Gross margin
  • Operating expenses
  • Revenue streams
  • EBITDA (Earnings before interest, tax, depreciation , & amortization )

Established businesses can prepare annual income statements, whereas new businesses and startups should consider preparing monthly statements.

Cash flow Statement

A cash flow statement is one of the most critical financial statements for startups that summarize your business’s cash in-and-out flows over a given time.

This section provides details on the cash position of your business and its ability to meet monetary commitments on a timely basis.

Your cash flow projection consists of the following three components:

✅ Cash revenue projection: Here, you must enter each month’s estimated or expected sales figures.

✅ Cash disbursements: List expenditures that you expect to pay in cash for each month over one year.

✅ Cash flow reconciliation: Cash flow reconciliation is a process used to ensure the accuracy of cash flow projections. The adjusted amount is the cash flow balance carried over to the next month.

Furthermore, a company’s cash flow projections can be crucial while assessing liquidity, its ability to generate positive cash flows and pay off debts, and invest in growth initiatives.

Balance Sheet

Your balance sheet is a financial statement that reports your company’s assets, liabilities, and shareholder equity at a given time.

Consider it as a snapshot of what your business owns and owes, as well as the amount invested by the shareholders.

This statement consists of three parts: assets , liabilities, and the balance calculated by the difference between the first two. The final numbers on this sheet reflect the business owner’s equity or value.

Balance sheets follow the following accounting equation with assets on one side and liabilities plus Owner’s equity on the other:

Here is what’s the core purpose of having a balance-sheet:

  • Indicates the capital need of the business
  • It helps to identify the allocation of resources
  • It calculates the requirement of seed money you put up, and
  • How much finance is required?

Since it helps investors understand the condition of your business on a given date, it’s a financial statement you can’t miss out on.

Break-even Analysis

Break-even analysis is a startup or small business accounting practice used to determine when a company, product, or service will become profitable.

For instance, a break-even analysis could help you understand how many candles you need to sell to cover your warehousing and manufacturing costs and start making profits.

Remember, anything you sell beyond the break-even point will result in profit.

You must be aware of your fixed and variable costs to accurately determine your startup’s break-even point.

  • Fixed costs: fixed expenses that stay the same no matter what.
  • Variable costs: expenses that fluctuate over time depending on production or sales.

A break-even point helps you smartly price your goods or services, cover fixed costs, catch missing expenses, and set sales targets while helping investors gain confidence in your business. No brainer—why it’s a key component of your startup’s financial plan.

Having covered all the key elements of a financial plan, let’s discuss how you can create a financial plan for your startup.

How to Create a Financial Section of a Startup Business Plan?

1. determine your financial needs.

You can’t start financial planning without understanding your financial requirements, can you? Get your notepad or simply open a notion doc; it’s time for some critical thinking.

Start by assessing your current situation by—calculating your income, expenses , assets, and liabilities, what the startup costs are, how much you have against them, and how much financing you need.

Assessing your current financial situation and health will help determine how much capital you need for your startup and help plan fundraising activities and outreach.

Furthermore, determining financial needs helps prioritize operational activities and expenses, effectively allocate resources, and increase the viability and sustainability of a business in the long run.

Having learned to determine financial needs, let’s head straight to setting financial goals.

2. Define Your Financial Goals

Setting realistic financial goals is fundamental in preparing an effective financial plan. So, it would help to outline your long-term strategies and goals at the beginning of your financial planning process.

Let’s understand it this way—if you are a SaaS startup pursuing VC financing rounds, you may ask investors about what matters to them the most and prepare your financial plan accordingly.

However, a coffee shop owner seeking a business loan may need to create a plan that appeals to banks, not investors. At the same time, an internal financial plan designed to offer financial direction and resource allocation may not be the same as previous examples, seeing its different use case.

Feeling overwhelmed? Just define your financial goals—you’ll be fine.

You can start by identifying your business KPIs (key performance indicators); it would be an ideal starting point.

3. Choose the Right Financial Planning Tool

Let’s face it—preparing a financial plan using Excel is no joke. One would only use this method if they had all the time in the world.

Having the right financial planning software will simplify and speed up the process and guide you through creating accurate financial forecasts.

Many financial planning software and tools claim to be the ideal solution, but it’s you who will identify and choose a tool that is best for your financial planning needs.

research financial plan example

Create a Financial Plan with Upmetrics in no time

Enter your Financial Assumptions, and we’ll calculate your monthly/quarterly and yearly financial projections.

Instagram image tagging

Start Forecasting

4. Make Assumptions Before Projecting Financials

Once you have a financial planning tool, you can move forward to the next step— making financial assumptions for your plan based on your company’s current performance and past financial records.

You’re just making predictions about your company’s financial future, so there’s no need to overthink or complicate the process.

You can gather your business’ historical financial data, market trends, and other relevant documents to help create a base for accurate financial projections.

After you have developed rough assumptions and a good understanding of your business finances, you can move forward to the next step—projecting financials.

5. Prepare Realistic Financial Projections

It’s a no-brainer—financial forecasting is the most critical yet challenging aspect of financial planning. However, it’s effortless if you’re using a financial planning software.

Upmetrics’ forecasting feature can help you project financials for up to 7 years. However, new startups usually consider planning for the next five years. Although it can be contradictory considering your financial goals and investor specifications.

Following are the two key aspects of your financial projections:

Revenue Projections

In simple terms, revenue projections help investors determine how much revenue your business plans to generate in years to come.

It generally involves conducting market research, determining pricing strategy , and cash flow analysis—which we’ve already discussed in the previous steps.

The following are the key components of an accurate revenue projection report:

  • Market analysis
  • Sales forecast
  • Pricing strategy
  • Growth assumptions
  • Seasonal variations

This is a critical section for pre-revenue startups, so ensure your projections accurately align with your startup’s financial model and revenue goals.

Expense Projections

Both revenue and expense projections are correlated to each other. As revenue forecasts projected revenue assumptions, expense projections will estimate expenses associated with operating your business.

Accurately estimating your expenses will help in effective cash flow analysis and proper resource allocation.

These are the most common costs to consider while projecting expenses:

  • Fixed costs
  • Variable costs
  • Employee costs or payroll expenses
  • Operational expenses
  • Marketing and advertising expenses
  • Emergency fund

Remember, realistic assumptions, thorough research, and a clear understanding of your market are the key to reliable financial projections.

6. Consider “What if” Scenarios

After you project your financials, it’s time to test your assumptions with what-if analysis, also known as sensitivity analysis.

Using what-if analysis with different scenarios while projecting your financials will increase transparency and help investors better understand your startup’s future with its best, expected, and worst-case scenarios.

Exploring “what-if” scenarios is the best way to better understand the potential risks and opportunities involved in business operations. This proactive exercise will help you make strategic decisions and necessary adjustments to your financial plan.

7. Build a Visual Report

If you’ve closely followed the steps leading to this, you know how to research for financial projections, create a financial plan, and test assumptions using “what-if” scenarios.

Now, we’ll prepare visual reports to present your numbers in a visually appealing and easily digestible format.

Don’t worry—it’s no extra effort. You’ve already made a visual report while creating your financial plan and forecasting financials.

Check the dashboard to see the visual presentation of your projections and reports, and use the necessary financial data, diagrams, and graphs in the final draft of your financial plan.

Here’s what Upmetrics’ dashboard looks like:

Upmetrics financial projections visual report

8. Monitor and Adjust Your Financial Plan

Even though it’s not a primary step in creating a good financial plan, it’s quite essential to regularly monitor and adjust your financial plan to ensure the assumptions you made are still relevant, and you are heading in the right direction.

There are multiple ways to monitor your financial plan.

For instance, you can compare your assumptions with actual results to ensure accurate projections based on metrics like new customers acquired and acquisition costs, net profit, and gross margin.

Consider making necessary adjustments if your assumptions are not resonating with actual numbers.

Also, keep an eye on whether the changes you’ve identified are having the desired effect by monitoring their implementation.

And that was the last step in our financial planning guide. However, it’s not the end. Have a look at this financial plan example.

Startup Financial Plan Example

Having learned about financial planning, let’s quickly discuss a coffee shop startup financial plan example prepared using Upmetrics.

Important Assumptions

  • The sales forecast is conservative and assumes a 5% increase in Year 2 and a 10% in Year 3.
  • The analysis accounts for economic seasonality – wherein some months revenues peak (such as holidays ) and wanes in slower months.
  • The analysis assumes the owner will not withdraw any salary till the 3rd year; at any time it is assumed that the owner’s withdrawal is available at his discretion.
  • Sales are cash basis – nonaccrual accounting
  • Moderate ramp- up in staff over the 5 years forecast
  • Barista salary in the forecast is $36,000 in 2023.
  • In general, most cafes have an 85% gross profit margin
  • In general, most cafes have a 3% net profit margin

Projected Balance Sheet

Projected Balance Sheet

Projected Cash-Flow Statement

Cash-Flow Statement

Projected Profit & Loss Statement

Profit & Loss Statement

Break Even Analysis

Break Even Analysis

Start Preparing Your Financial Plan

We covered everything about financial planning in this guide, didn’t we? Although it doesn’t fulfill our objective to the fullest—we want you to finish your financial plan.

Sounds like a tough job? We have an easy way out for you—Upmetrics’ financial forecasting feature. Simply enter your financial assumptions, and let it do the rest.

So what are you waiting for? Try Upmetrics and create your financial plan in a snap.

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

crossline

Frequently Asked Questions

How often should i update my financial projections.

Well, there is no particular rule about it. However, reviewing and updating your financial plan once a year is considered an ideal practice as it ensures that the financial aspirations you started and the projections you made are still relevant.

How do I estimate startup costs accurately?

You can estimate your startup costs by identifying and factoring various one-time, recurring, and hidden expenses. However, using a financial forecasting tool like Upmetrics will ensure accurate costs while speeding up the process.

What financial ratios should startups pay attention to?

Here’s a list of financial ratios every startup owner should keep an eye on:

  • Net profit margin
  • Current ratio
  • Quick ratio
  • Working capital
  • Return on equity
  • Debt-to-equity ratio
  • Return on assets
  • Debt-to-asset ratio

What are the 3 different scenarios in scenario analysis?

As discussed earlier, Scenario analysis is the process of ascertaining and analyzing possible events that can occur in the future. Startups or businesses often consider analyzing these three scenarios:

  • base-case (expected) scenario
  • Worst-case scenario
  • best case scenario.

About the Author

research financial plan example

Ajay is a SaaS writer and personal finance blogger who has been active in the space for over three years, writing about startups, business planning, budgeting, credit cards, and other topics related to personal finance. If not writing, he’s probably having a power nap. Read more

Related Articles

research financial plan example

How to Write a Business Plan Complete Guide

research financial plan example

Business Problem Statement Explained with Examples

research financial plan example

Business Startup Checklist: 10 Steps for a Great Start

Upmetrics logo

Reach Your Goals with Accurate Planning

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

trustpilot reviews

Popular Templates

Financial-Reports-template

Analyst Answers

Data & Finance for Work & Life

research financial plan example

Financial Planning Methods: 3 Types & Excel Examples

Financial planning can make the difference between success and failure for companies in today’s dynamic markets. In most companies, Financial Planning & Analysis (FP&A) teams are responsible for outlining financial plans using an analytical toolbox to deliver consistent and flexible insights that feed the corporate decision-making process. Financial planning methods are the fundamental elements in this FP&A toolbox .

The purpose of this article is to outline 3 financial planning methods and how to execute those methods in Microsoft Excel, as well as 2 types of financial planning into which it all fits.

Financial planning methods:

  • Budget and business planning

Cash flow planning

Funds planning.

Types of Financial Planning:

  • Organic growth planning
  • Strategic growth planning

How financial planning works: developing a financial plan

Before we jump into methods and techniques, you need to understand how financial planning works in a company. At a high level, it happens in these three steps:

  • Qualitative outline . Business decision-makers outline what the company will need in order to better serve its customers in a period of at least the next 365 days .
  • Quantitative outline . Financial analysts use the qualitative plan to determine how much it will cost, how much revenue it is expected to generate, if the company can afford to fund the plan, and if not, how to fund it.
  • Revision of the qualitative plan . Perhaps the most painful step, revision is the process by which financial analysts explain how the strategic qualitative plan may negatively impact the company financially . They must then make suggestions on how to modify the plan. It’s painful because, in most companies, business decision-makers don’t like changing their plans. (Honestly, does anyone like changing their plans?)

These steps stand in opposition to popular opinion, which says that financial planning is a complex, math-heavy process that requires advanced studies to implement. This is far from the truth. In reality, financial planning is the process of reflecting the financial impact of strategic business decisions.

In most companies, sales, executive, and product departments make suggestions for how the business should pursue better serving its existing customers or serve new customers over a period of at least one year, and in most cases 5 years . This part of the financial plan is the qualitative section .

It is the most important section. Without a detailed qualitative explanation of what the business should do, the financial plan is nothing more than random numbers in Excel. In other words, financial planning starts with the qualitative plan and becomes the quantitative plan.

Financial planning basics

The basics of financial planning help weed out the myths that financial planning is complicated. Broken down, the essential components of a company are simple: costs, revenue, and funding. The basics of financial planning ask the following three questions:

  • How much does it cost to buy the goods we need, and how expensive are our employees?
  • How much will customers pay for the products we produce?
  • How can we fund the costs of our plans if we don’t have enough cash on hand?

Complexity only enters the equation when we translate these basic concepts to the three financial statements , but don’t worry about those for now. Just remember the basics.

In a sentence, the basics of financial planning are:

  • Costs of the plan,
  • R evenues it will generate, and
  • Funding needed to pay for the costs.

Methods used in financial planning

So, how do we analyze costs, revenues, and funding? We use the financial statements, and most importantly, the profit & loss statement (aka Income Statement, or P&L for short).

As a brief reminder, the P&L looks like this:

The process of completing the three financial statements with relevant information requires three financial planning methods :

  • Budget & business planning,
  • Cash flow planning, and
  • Funds planning .

Let’s look at them in more detail.

Budget & business planning

Budget & business planning requires that we establish known costs and expected revenues for the first year (budget), then use growth metrics to project costs and revenues going forward (business plan) .

The easiest way to understand budget and business planning is with an example. Imagine you run an e-commerce business called Batch Watch that sells watches to retailers. You would like to move into luxury watches, since you currently sell only running watches. The luxury watch will be called Gamma .

You’ve looked at your competitors, and you think you can sell Gamma watches for $750 each (unit revenue). To build the watches, you need to spend $450 on glass and metal per watch, and you need a special machine to work with high quality metals. The machine costs $500,000 and lasts 10 years.

As your financial analyst, I’m going to first build a P&L to show how profitable this venture could be. I assume that the company will sell 1/4 as many luxury watches as running watches, which comes out to 1,000 in the first year. Here’s how profitable it could be:

Now that we have the 1st year budget , we can use growth metrics to see what this will look like over the next 5 years.

We assume that the revenues will grow by 1% year-over-year. CoS will always remain the same proportion of revenues (450/750, or 60% ). Depreciation remains the same each year, and the tax rate will not change. A 5-year profitability business plan, thus, could look like the following:

Now we know the project would be profitable given our assumptions about revenue and growth rates, but we need to see if Batch Watch has enough cash to start the project, and how much it might need over time.

The reason we look at cash as separate from profitability is due to two financial phenomenon: purchases on credit (aka accounts receivable ), and depreciation . Accounting principles dictate that we record revenues at the time they are delivered, not when cash arrives. This means that if Batch Watch allows retailers to pay for watches 30 days after delivery, the company sustains a cost without any cash inflow for that month.

At the same time, Batch Watch has to bear the weight of the $500,000 for the luxury machine. While on the P&L profitability view, we only show $50,000 on the books each year for tax purposes, we had to pay all $500k up front in year 1.

In other words, we need roughly $950,000 in cash during year 1 to start making the luxury watches. But that’s not the only concern. We also need to see how long it will take for Batch Watch to be paid on average for its watches so the company never goes cash negative even after the initial $950k payment.

The easiest way to do this is with a cash flow schedule . Cash flow schedules simply show the starting amount of cash, plus inflows, and minus outflows over time. Let’s assume Batch Flow has 800k in cash as of January 1st, at which point it wants to launch the project. A cash flow schedule might look like the following:

research financial plan example

As you can see, we start with $800k in the bank. The initial $500k purchase for the machine, as well as a subsequent $225k purchase for watch raw materials bring Batch Watch cash level down considerably. While we start to see some interest with $75,000 purchases in March, we become cash negative in April with another $225k purchase of raw materials.

This cash flow schedule helps us understand that while we may be profitable from a P&L view, we would not be cash positive. So what do we do when we need more cash to fund activities? We turn to the third financial planning method: funds planning .

Funds planning (or funding for short), is the process by which analyst find external funding for financial plans. The funding process is usually the last step in quantitative financial planing, since most companies are only interesting in taking on external funding when 1. they know that the project will be profitable, and 2. that their cash flow will be negative without it .

Once you have outlined your cash flow projection, you know how much money you will need, and when. The next step is simply to decide what kind of outside funding the company will use. There are two types of funding available:

  • Loans. Without a doubt, loans are the number one source of funding in financial planning for stable companies. In a sentence, you use a loan to get a surge of cash inflows, then pay it back in manageable installments over time. While consumers are most familiar with mortgage-type loans, the most common types for business are revolving credit facilities , or RCFs . RCFs allow companies to draw down small sums within a given limit, then reimburse it with monthly accumulated interest.
  • Equity. Equity is a much more common option for growth-phases companies that need huge cash injections to launch their products. By issuing or selling equity, company shareholders “give up” parts of their ownership in order to raise huge sums, and fast.

Let’s look back to our example cash flow schedule. We saw that in the month of April, Batch Watch went cash negative. In order to prevent this, we decide on a funding strategy. Since it’s a small amount, we decide to go with a RCF.

The brilliance of the RCF is that we can draw down the amount we need almost instantly when we’re approved. Take a look at this cash flow schedule that assumes we take the loan in April. We then start receiving more substantial orders.

research financial plan example

(NOTE: one element I’m not including in the chart is the cost to reimburse the loan once it’s drawn down. RCF repayments are special in that the reimbursement plan is flexible. Much like a credit card, when you draw it down, you will accumulate interest until it’s reimbursed. No fancy mortgage payment calculations needed!)

Example in Excel

Organic financial planning vs. strategic financial planning.

There are two frameworks that guide financial planning methods: organic financial planning & strategic financial planning.

Organic financial planning uses budget & business planning, cash flow planning, and funds planning to show how a company can grow organically — that is, by excluding the use of external funds.

Strategic financial planning uses budget & business planning, cash flow planning, and funds planning to show how a company can grow through the use of divestitures, acquisition, and external funding.

Organic financial planning focuses on the use of company resources, instead of paying interest rates on loans and yielding equity ownership to generate cash. It’s a low-risk endeavor, but it’s slow.

Strategic financial planning focuses on rapid growth by leveraging external funding, taking on interest, and selling ownership for cash. It’s a high-risk endeavor, but it moves very, very quickly.

Analysts typically use these frameworks to guide assumptions about growth metrics and potential revenues in the profitability view. They use it to examine long term cash flow needs, and whether to include external cash in the funds planning.

About the Author

Noah is the founder & Editor-in-Chief at AnalystAnswers. He is a transatlantic professional and entrepreneur with 5+ years of corporate finance and data analytics experience, as well as 3+ years in consumer financial products and business software. He started AnalystAnswers to provide aspiring professionals with accessible explanations of otherwise dense finance and data concepts. Noah believes everyone can benefit from an analytical mindset in growing digital world. When he's not busy at work, Noah likes to explore new European cities, exercise, and spend time with friends and family.

File available immediately.

research financial plan example

Notice: JavaScript is required for this content.

Join thousands of product people at Insight Out Conf on April 11. Register free.

Insights hub solutions

Analyze data

Uncover deep customer insights with fast, powerful features, store insights, curate and manage insights in one searchable platform, scale research, unlock the potential of customer insights at enterprise scale.

Featured reads

research financial plan example

Product updates

Dovetail retro: our biggest releases from the past year

research financial plan example

Tips and tricks

How to affinity map using the canvas

research financial plan example

Dovetail in the Details: 21 improvements to influence, transcribe, and store

Events and videos

© Dovetail Research Pty. Ltd.

How to write a research plan: Step-by-step guide

Last updated

30 January 2024

Reviewed by

Today’s businesses and institutions rely on data and analytics to inform their product and service decisions. These metrics influence how organizations stay competitive and inspire innovation. However, gathering data and insights requires carefully constructed research, and every research project needs a roadmap. This is where a research plan comes into play.

There’s general research planning; then there’s an official, well-executed research plan. Whatever data-driven research project you’re gearing up for, the research plan will be your framework for execution. The plan should also be detailed and thorough, with a diligent set of criteria to formulate your research efforts. Not including these key elements in your plan can be just as harmful as having no plan at all.

Read this step-by-step guide for writing a detailed research plan that can apply to any project, whether it’s scientific, educational, or business-related.

  • What is a research plan?

A research plan is a documented overview of a project in its entirety, from end to end. It details the research efforts, participants, and methods needed, along with any anticipated results. It also outlines the project’s goals and mission, creating layers of steps to achieve those goals within a specified timeline.

Without a research plan, you and your team are flying blind, potentially wasting time and resources to pursue research without structured guidance.

The principal investigator, or PI, is responsible for facilitating the research oversight. They will create the research plan and inform team members and stakeholders of every detail relating to the project. The PI will also use the research plan to inform decision-making throughout the project.

  • Why do you need a research plan?

Create a research plan before starting any official research to maximize every effort in pursuing and collecting the research data. Crucially, the plan will model the activities needed at each phase of the research project.

Like any roadmap, a research plan serves as a valuable tool providing direction for those involved in the project—both internally and externally. It will keep you and your immediate team organized and task-focused while also providing necessary definitions and timelines so you can execute your project initiatives with full understanding and transparency.

External stakeholders appreciate a working research plan because it’s a great communication tool, documenting progress and changing dynamics as they arise. Any participants of your planned research sessions will be informed about the purpose of your study, while the exercises will be based on the key messaging outlined in the official plan.

Here are some of the benefits of creating a research plan document for every project:

Project organization and structure

Well-informed participants

All stakeholders and teams align in support of the project

Clearly defined project definitions and purposes

Distractions are eliminated, prioritizing task focus

Timely management of individual task schedules and roles

Costly reworks are avoided

  • What should a research plan include?

The different aspects of your research plan will depend on the nature of the project. However, most official research plan documents will include the core elements below. Each aims to define the problem statement, devising an official plan for seeking a solution.

Specific project goals and individual objectives

Ideal strategies or methods for reaching those goals

Required resources

Descriptions of the target audience, sample sizes, demographics, and scopes

Key performance indicators (KPIs)

Project background

Research and testing support

Preliminary studies and progress reporting mechanisms

Cost estimates and change order processes

Depending on the research project’s size and scope, your research plan could be brief—perhaps only a few pages of documented plans. Alternatively, it could be a fully comprehensive report. Either way, it’s an essential first step in dictating your project’s facilitation in the most efficient and effective way.

  • How to write a research plan for your project

When you start writing your research plan, aim to be detailed about each step, requirement, and idea. The more time you spend curating your research plan, the more precise your research execution efforts will be.

Account for every potential scenario, and be sure to address each and every aspect of the research.

Consider following this flow to develop a great research plan for your project:

Define your project’s purpose

Start by defining your project’s purpose. Identify what your project aims to accomplish and what you are researching. Remember to use clear language.

Thinking about the project’s purpose will help you set realistic goals and inform how you divide tasks and assign responsibilities. These individual tasks will be your stepping stones to reach your overarching goal.

Additionally, you’ll want to identify the specific problem, the usability metrics needed, and the intended solutions.

Know the following three things about your project’s purpose before you outline anything else:

What you’re doing

Why you’re doing it

What you expect from it

Identify individual objectives

With your overarching project objectives in place, you can identify any individual goals or steps needed to reach those objectives. Break them down into phases or steps. You can work backward from the project goal and identify every process required to facilitate it.

Be mindful to identify each unique task so that you can assign responsibilities to various team members. At this point in your research plan development, you’ll also want to assign priority to those smaller, more manageable steps and phases that require more immediate or dedicated attention.

Select research methods

Research methods might include any of the following:

User interviews: this is a qualitative research method where researchers engage with participants in one-on-one or group conversations. The aim is to gather insights into their experiences, preferences, and opinions to uncover patterns, trends, and data.

Field studies: this approach allows for a contextual understanding of behaviors, interactions, and processes in real-world settings. It involves the researcher immersing themselves in the field, conducting observations, interviews, or experiments to gather in-depth insights.

Card sorting: participants categorize information by sorting content cards into groups based on their perceived similarities. You might use this process to gain insights into participants’ mental models and preferences when navigating or organizing information on websites, apps, or other systems.

Focus groups: use organized discussions among select groups of participants to provide relevant views and experiences about a particular topic.

Diary studies: ask participants to record their experiences, thoughts, and activities in a diary over a specified period. This method provides a deeper understanding of user experiences, uncovers patterns, and identifies areas for improvement.

Five-second testing: participants are shown a design, such as a web page or interface, for just five seconds. They then answer questions about their initial impressions and recall, allowing you to evaluate the design’s effectiveness.

Surveys: get feedback from participant groups with structured surveys. You can use online forms, telephone interviews, or paper questionnaires to reveal trends, patterns, and correlations.

Tree testing: tree testing involves researching web assets through the lens of findability and navigability. Participants are given a textual representation of the site’s hierarchy (the “tree”) and asked to locate specific information or complete tasks by selecting paths.

Usability testing: ask participants to interact with a product, website, or application to evaluate its ease of use. This method enables you to uncover areas for improvement in digital key feature functionality by observing participants using the product.

Live website testing: research and collect analytics that outlines the design, usability, and performance efficiencies of a website in real time.

There are no limits to the number of research methods you could use within your project. Just make sure your research methods help you determine the following:

What do you plan to do with the research findings?

What decisions will this research inform? How can your stakeholders leverage the research data and results?

Recruit participants and allocate tasks

Next, identify the participants needed to complete the research and the resources required to complete the tasks. Different people will be proficient at different tasks, and having a task allocation plan will allow everything to run smoothly.

Prepare a thorough project summary

Every well-designed research plan will feature a project summary. This official summary will guide your research alongside its communications or messaging. You’ll use the summary while recruiting participants and during stakeholder meetings. It can also be useful when conducting field studies.

Ensure this summary includes all the elements of your research project. Separate the steps into an easily explainable piece of text that includes the following:

An introduction: the message you’ll deliver to participants about the interview, pre-planned questioning, and testing tasks.

Interview questions: prepare questions you intend to ask participants as part of your research study, guiding the sessions from start to finish.

An exit message: draft messaging your teams will use to conclude testing or survey sessions. These should include the next steps and express gratitude for the participant’s time.

Create a realistic timeline

While your project might already have a deadline or a results timeline in place, you’ll need to consider the time needed to execute it effectively.

Realistically outline the time needed to properly execute each supporting phase of research and implementation. And, as you evaluate the necessary schedules, be sure to include additional time for achieving each milestone in case any changes or unexpected delays arise.

For this part of your research plan, you might find it helpful to create visuals to ensure your research team and stakeholders fully understand the information.

Determine how to present your results

A research plan must also describe how you intend to present your results. Depending on the nature of your project and its goals, you might dedicate one team member (the PI) or assume responsibility for communicating the findings yourself.

In this part of the research plan, you’ll articulate how you’ll share the results. Detail any materials you’ll use, such as:

Presentations and slides

A project report booklet

A project findings pamphlet

Documents with key takeaways and statistics

Graphic visuals to support your findings

  • Format your research plan

As you create your research plan, you can enjoy a little creative freedom. A plan can assume many forms, so format it how you see fit. Determine the best layout based on your specific project, intended communications, and the preferences of your teams and stakeholders.

Find format inspiration among the following layouts:

Written outlines

Narrative storytelling

Visual mapping

Graphic timelines

Remember, the research plan format you choose will be subject to change and adaptation as your research and findings unfold. However, your final format should ideally outline questions, problems, opportunities, and expectations.

  • Research plan example

Imagine you’ve been tasked with finding out how to get more customers to order takeout from an online food delivery platform. The goal is to improve satisfaction and retain existing customers. You set out to discover why more people aren’t ordering and what it is they do want to order or experience. 

You identify the need for a research project that helps you understand what drives customer loyalty. But before you jump in and start calling past customers, you need to develop a research plan—the roadmap that provides focus, clarity, and realistic details to the project.

Here’s an example outline of a research plan you might put together:

Project title

Project members involved in the research plan

Purpose of the project (provide a summary of the research plan’s intent)

Objective 1 (provide a short description for each objective)

Objective 2

Objective 3

Proposed timeline

Audience (detail the group you want to research, such as customers or non-customers)

Budget (how much you think it might cost to do the research)

Risk factors/contingencies (any potential risk factors that may impact the project’s success)

Remember, your research plan doesn’t have to reinvent the wheel—it just needs to fit your project’s unique needs and aims.

Customizing a research plan template

Some companies offer research plan templates to help get you started. However, it may make more sense to develop your own customized plan template. Be sure to include the core elements of a great research plan with your template layout, including the following:

Introductions to participants and stakeholders

Background problems and needs statement

Significance, ethics, and purpose

Research methods, questions, and designs

Preliminary beliefs and expectations

Implications and intended outcomes

Realistic timelines for each phase

Conclusion and presentations

How many pages should a research plan be?

Generally, a research plan can vary in length between 500 to 1,500 words. This is roughly three pages of content. More substantial projects will be 2,000 to 3,500 words, taking up four to seven pages of planning documents.

What is the difference between a research plan and a research proposal?

A research plan is a roadmap to success for research teams. A research proposal, on the other hand, is a dissertation aimed at convincing or earning the support of others. Both are relevant in creating a guide to follow to complete a project goal.

What are the seven steps to developing a research plan?

While each research project is different, it’s best to follow these seven general steps to create your research plan:

Defining the problem

Identifying goals

Choosing research methods

Recruiting participants

Preparing the brief or summary

Establishing task timelines

Defining how you will present the findings

Get started today

Go from raw data to valuable insights with a flexible research platform

Editor’s picks

Last updated: 21 September 2023

Last updated: 14 February 2024

Last updated: 17 February 2024

Last updated: 19 November 2023

Last updated: 5 February 2024

Last updated: 30 January 2024

Last updated: 15 February 2024

Last updated: 12 October 2023

Last updated: 31 January 2024

Last updated: 10 April 2023

Latest articles

Related topics, log in or sign up.

Get started with a free trial

logicaldollar logo

The Personal Financial Plan Example You Can Use To Reach Your Financial Goals

Financial planning is important no matter where in your financial life you are. That said, it can be a bit daunting when trying to figure out exactly how to do this, which is why having a personal financial plan example can really help.

After all, without some kind of sample to work off, it’s hard to know just what to include.

Is it like a long term budget? Or is it more of a place to set out your goals?

Well, in many ways, it’s basically both of these, with some extra features thrown in for good measure.

budget sheets

TAKE BACK CONTROL OF YOUR FINANCES

Our free budget planner will help you to  quickly and easily take control of your money  – instead of it controlling you.

Get it free for a limited time!

Check your inbox to grab your budget!

.

You’ll also join our mailing list to get updates on how to manage your money – unsubscribe at any time at the end of each email.

But the overall goal of a personal financial plan is to see where you are and where you want to be from a financial perspective, as well as how to get there.

So keep reading to find out how you can do just that.

Table of Contents

What is a personal financial plan?

A financial plan is a strategy that clearly sets out the financial goals you want to achieve, as well as how you plan to do this.

This means that it involves looking at your current financial situation, particularly your net worth, and spelling out the exact money steps you need to take from here.

It’s also a good opportunity to see where you’re doing well and where there are areas you can probably improve with respect to your money management. In this way, it’s kind of like a long term budget.

This means, of course, that you’ll have to continue to keep an eye on your money management as you go forward, including to make sure that you’re doing all you can over the coming months and years to reach the steps set out in your financial plan.

For that, we always recommend Personal Capital . In our experience, it’s by far the best app for giving you a free, ongoing perspective of your financial situation, along with personalized tips on how to manage your money even better.

personal capital logo and sample screens

Personal Capital

Our pick: best money management app.

Easily our choice for the best app to help you manage your money better.

Create a budget, track your spending automatically, receive personalized advice, get alerts about hidden fees and a ton more – and it’s all free .

What are the benefits of having a personal financial plan?

Having a personal financial plan is a great way to make sure that you’re setting yourself up for future financial success.

Instead of vaguely thinking that you, for example, have to save for retirement, it gives you actionable steps to reach an actual goal of, say, how much money you think you need to retire.

More specifically, some of the benefits of having a financial plan can be seen below.

1. Knowing your exact net worth

Having an idea of your exact net worth is an underrated aspect of financial management. Many people write this off as being unimportant and choose to focus instead of things such as how much debt they have left to pay off or the value of their retirement accounts.

But calculating your net worth is super important for knowing how you are performing financially. By balancing out your assets and liabilities, you’ll have the exact starting point for developing your strategy of how to reach your financial goals.

(After all, in any journey, it’s pretty much impossible to know how to get to a destination if you don’t know where the starting line is.)

This doesn’t have to be complicated. In fact, as just mentioned, Personal Capital will actually do this for you by connecting securely to all of your accounts and giving you the overall picture on one screen.

2. Tracking your finances

By committing to following a personal financial plan, you’re also indirectly committing to keeping a closer eye on your financial records.

This is because any sort of letter or other document you receive that relates to your finances will guide the ongoing development of your financial plan.

This includes bills, bank statements, pay slips, insurance policies and renewal notices, loan agreements, tax notices and anything related to estate planning.

3. Monitoring your cash flow

Very simply, your cash flow helps you see whether you have more money coming in or out.

A positive cash flow means you have more income than what you’re spending and a negative cash flow is the other way around – and, obviously, not where you want to be.

Many people think they’re breaking about even when they actually are spending more than they realize. It’s only as their credit card debt starts to creep up do they see that their cash flow situation isn’t quite where they thought it was.

So monitoring your cash flow is a good way to make sure that your spending habits are under control and that you’re not going into debt to support your lifestyle.

(And if you are, you should seriously consider drastically cutting your expenses .)

MANAGE YOUR MONEY LIKE A BOSS

Managing your money effectively can  literally change your life . And starting a budget using our budget planner is the first step towards you doing just that.

4. Planning for how to achieve your financial goals

Having financial goals is great. But, like any other goal, it has to be SMART – that is, Specific, Measurable, Achievable, Realistic and Timely .

This means, rather than simply planning to, say, pay off all your credit card debt to increase your credit score , you should be more specific and work it out using the SMART format. That is:

  • Specific : You want to pay off your credit card debt in full.
  • Measurable : You have $5,000 in credit card debt to pay off.
  • Achievable : By only allowing yourself to get food delivered once every two weeks, taking your lunch to work and only going out for dinner once a month, you’ve calculated that you’ll free up just over $200 every month.
  • Realistic : Based on the amount of debt and the timeline you’ve set, this goal is realistic to achieve.
  • Timely : You’ve given yourself two years to pay this off.

And by having a financial plan, you’re not only setting financial goals but breaking these down into manageable steps based on your actual financial situation, making it far more likely that you’ll actually achieve them. 

Related: Why Living Stingy Could be the Key to Achieving All Your Financial Goals

What is included in a financial plan?

Your financial plan can include as much or as little detail as you want, although more is generally better, especially when working out your current situation as well as your strategy to move forward from there.

One good way to draft your personal financial plan is to base it around what are often referred to as the “7 key components of financial planning”.

What are the 7 key components of financial planning?

These are the main components that many experts say should be included in anyone’s personal financial plan, given how important each one is to securing your financial future.

1. Retirement plans

No matter what your other financial goals are, any plan should include a strategy for building towards a financially secure retirement.

2. Investment management

Your investment objectives may overlap with some of the other components, such as if you’re investing for retirement. 

But that’s to be expected – what this part of the plan does is look at your investment objectives and risk tolerance, then determine how you will manage this with respect to your asset allocation (that is, the mix of assets in your portfolio). 

For example, you may plan to manage your investments quite aggressively for the next five years while you’re young and your risk tolerance is higher, then plan to scale back to a more conservative portfolio after that.

3. Social security planning

If you currently receive any social security benefits, these should be included as part of your plan, including to take into account when these may increase or, alternatively, when they may no longer be available, forcing you to cover the benefits through other means.

Similarly, you may be expecting to receive benefits in future, such as when you retire. These should also form part of your plan as, to continue this example, this could help a lot in determining what actions you need to take now to fund your retirement.

4. Risk management

This doesn’t involve simply considering your situation based on the current risks you face, but also planning for other, more unexpected risks.

For example, what if you have an accident and are no longer able to work to support your family – how will your finances fare in a situation like this?

5. Tax planning

It can be a good idea to speak with a tax accountant who can advise you on the tax consequences of your financial plan, as well as to potentially include legal tax reduction strategies as part of your plan for the future.

6. Estate planning

Estate planning – or what happens to your finances and other aspects of your estate when you die – is important for anyone to consider, no matter where you are in life.

Having a valid will is only one aspect of this. Depending on your circumstances, you may also wish to consider medical directives, durable power of attorney and guardianship for any children.

7. Cash flow and budgeting

As mentioned earlier, knowing the status of your cash flow is imperative for anyone looking to take their finances to the next level. This is especially the case if you have a negative cash flow, meaning you’re living beyond your means.

So as part of any financial plan, getting your spending under control is critical to then address the other aspects of your plan. And the best way to do this for many people is to start – and stick to – a budget.

What makes a good financial plan?

What makes a good financial plan for one person won’t be the same for the next, as it very much depends on your personal circumstances.

That said, there are some key features that are the same across all good plans, including that they:

  • Include realistic, achievable goals
  • Have room for adjustments as you go forward and (ideally) come closer to achieving your goals
  • Address all possible financial issues , not just those that you’re facing right now
  • Prepare you for the unexpected
  • Are relatively simple to monitor over the long term
  • Have the ultimate aim of making sure that you are financially secure for retirement

Personal financial plan example

Looking at a personal financial plan example may help when figuring out how to do your own.

So let’s look at how Fred’s money management is going.

What does a financial plan look like?

Fred’s personal financial plan example makes a few assumptions:

  • He’s currently earning $40,000 after tax but expects to get a 3% pay rise for at least the next five years
  • He has a housemate who is paying him $100 per week to help with the mortgage, but Fred only wants to live with someone for the next three years
  • Fred is 35 years old and plans to retire at age 65
  • He made some savvy investments over time and will receive $1,500 in dividends this year. He expects this to increase by 10% every year for at least the next five years as he further contributes to his investments.
  • He doesn’t think he’ll be receiving any social security.

And one note for you: this is fairly simplified and only shows the first five years. When doing your own personal financial plan, it’s best for it to continue at least until you retire.

Current net worth

The first step is always to work out your current net worth so you know where you stand financially at the moment.

Financial goals

The next step for Fred is to list his financial goals in the order he wants to achieve them, with the amount that he wants this to be (in his case, “in full”) and how long this will take.

Cash flow estimation

Fred now has to estimate his cash flow. As mentioned above, this is a fairly simple version of this but, at the same time, you’re not a fortune teller so it’s never going to be 100% accurate – which is exactly why financial plans need to be reviewed and revised from time to time.

But, for now, here’s Fred’s estimation for the next five years (noting that yours should be until retirement):

What should the next steps be in this personal financial plan example?

We go through this further below, but Fred’s job now is to use the information he’s prepared above to list the following:

  • Brainstorm potential risks that could stop him from reaching his financial goals and determine how these could be mitigated, such as through taking out appropriate insurance policies or having a more conservative investment portfolio
  • Create an investment strategy based on his financial goals, estimated cash flow and to avoid potential risks

For Fred, losing his job is a major risk given that it’s his main source of income and he has to continue paying off that mortgage. Some ways to mitigate this could be to increase his savings through living more frugally for a while or keep a housemate for longer than planned to help with the mortgage. 

He may also want to consider taking out an insurance policy that covers him if he’s unable to work due to illness.

Fred’s investment strategy, noting his aim is to have $1,000,000 for retirement, also needs to reflect the fact that a lot of his money is going to be focused on paying off debt for the next eight years .

This means that, after that’s done, he’s really going to have to knuckle down and throw a lot of money at his investment and retirement accounts, while also making sure that his investments aren’t too conservative so as to maximize returns.

He should also double check that he has a valid will in place so as to cover his estate planning.

Personal financial planning strategy

You’ve now seen a personal financial plan example that incorporates the 7 key components of financial planning. And you know you need a plan given the benefits of having one that we outlined above.

But when starting from scratch, it can still seem a bit daunting to actually get started with creating your plan. This is why many recommend using the following set process for actually establishing this plan.

What are the 5 components of a financial plan process?

These 5 components of a financial plan provide a simple step-by-step way to prepare your first plan.

In fact, you can see how these were followed in the personal financial plan example mentioned earlier.

Keep in mind though that these come after you work out your current financial position . That always comes before any future plans are considered.

1. Set your financial plan goals

The first part of your journey is knowing just what your destination is! In this case, the first step is to define the financial goals you want your plan to help you achieve.

Remember the point raised earlier: these should be SMART. In finances, as with many things in life, simple is usually best.

The best way to do this is as follows:

  • Take your time to think about what you want to achieve financially and list them as they come to mind.
  • Next, list them in the order in which you want to complete them
  • Finally, place numbers next to them in your personal order of priority. This will usually be similar to their chronological order, but can be a good way to distinguish between two priorities that have the same timeline.

Don’t worry, these aren’t now set in stone. In fact, it’s a good idea to revisit these as your finances evolve and you become better at managing your money.

2. Estimate your future cash flow

Having at least a rough estimate of your future cash flow helps in later steps when figuring out all the “what ifs”.

What if you lose your job in the next five years and can’t find another one for 18 months – will your cash flow with your existing savings allow you to survive?

Or what if you’re forced to retire 10 years early because of health concerns – how will you cope with that?

It can even be more positive – what if you actually want to retire 10 years early? Is this possible?

It should start to become pretty clear as you brainstorm more of these scenarios just how important having a cash flow estimate is when planning to cope with some of these (not always welcome) surprises.

Related: How to Calculate Your Savings Rate – and Why You Should

3. Assess any risks to your finances

These risks relate to the “what ifs” we mentioned in the previous step. That is, in this step, you’ll look at your goals and then list all the things that could get in the way of reaching those objectives.

Sure, you may want to save for retirement and pay for both of your kids to go to college. But what if (to use an earlier example) you have an accident and can’t work for some time – do you have an insurance policy to cover this? 

Or what if the stock market crashes – does your potential investment strategy give you time to recover from this?

Maybe you want to buy a house in the next five years – does your salary allow this? Or are your assets liquid enough to allow this to happen?

Once you’ve exhausted all your ideas for potential risks, you can then go through these to see what you can do to protect yourself if they do actually happen . Insurance policies may help, such as medical or life insurance. For other aspects, adjusting your investment strategy may be needed.

4. Create an investment strategy

Your investment strategy should be a combination of:

  • Your timeline to achieve these
  • Your cash flow projection (i.e. how much you believe you’ll have to invest once you cover your other expenses)
  • The risks you’re willing to accept as an investor – take into account any risks from the previous step that may affect your investments and can’t be mitigated through insurance policies or other protective acts

5. Review and revise your plan regularly

Your financial plan is never really finished. As your life changes, including your financial circumstances, your plan will evolve too to cope with this. 

So make sure you sit down regularly to go through it and see what can be adjusted to make sure your money is being managed as solidly as possible. 

Maybe you’ve reached a goal faster than you expected – or not fast enough. Or perhaps your income has gone up or down and adjustments are needed based on this.

Whatever it is, reviewing and updating your personal financial plan from time to time will make sure that it remains as relevant as possible to your current situation.

So, in summary, how do I write a financial plan for retirement? Can I just copy the personal financial plan example you used?

You can certainly copy that personal financial plan example and just insert your own numbers where needed.

Otherwise, one of the other templates you can find online will also do the job.

Just make sure you follow the process set out in the 5 components of a financial plan. Then, when it’s done, check that your own plan addresses each of the 7 key components of financial planning.

And from there, you’re on your way to reaching each of the financial goals your plan sets out to achieve!

READY FOR MORE?

Join thousands of subscribers in getting regular tips in your inbox on  how to take control of your finances and save more money  – and, for a limited time, get our free budget planner as a gift!

' src=

Anna is the founder of LogicalDollar and a personal finance expert, having been featured in Forbes, HuffPost, Reader’s Digest, Bankrate, MSN Money, Yahoo! Finance, CreditCards.com and many more. With more than 10 years of experience in the financial and legal industries, bachelor’s and master’s degrees in these fields, as well as her own journey in turning $60,000 in debt into a thriving investment portfolio, she’s committed to helping others get on the path to financial freedom.

Similar Posts

How to Write a Check: A Simple Step-by-Step Guide

How to Write a Check: A Simple Step-by-Step Guide

10 Tips for the Day to Set Yourself Up for Success

10 Tips for the Day to Set Yourself Up for Success

13 Must-See Money Documentaries on Netflix (to Get Smart on Finance)

13 Must-See Money Documentaries on Netflix (to Get Smart on Finance)

I Need to Move Out But Can’t Afford It! What Should I Do?

I Need to Move Out But Can’t Afford It! What Should I Do?

What To Do When Your Debit Card Expires (Can You Still Use It?)

What To Do When Your Debit Card Expires (Can You Still Use It?)

Instacart Tipping: Ultimate Guide on the Do’s and Don’ts

Instacart Tipping: Ultimate Guide on the Do’s and Don’ts

What Is Storyselling for Financial Advisors?

Financial advisors reviewing a storyselling marketing strategy to attract new clients.

Increasing sales is a common goal for advisors and the way you approach your marketing plan can have a direct impact on outcomes. Story selling is an increasingly popular strategy for promoting services and products to clients in an approachable, relatable way. If you’ve struggled to gain traction with marketing, learning story selling for financial advisors may help you translate action into results.

SmartAsset’s Advisor Marketing Platform can help you add new clients at your desired pace.  Sign up for a free demo today .

What Is Storyselling?

Storyselling or story selling is a marketing strategy that emphasizes the use of stories to promote and sell products and services. Rather than simply listing the technical details of a product or service, story selling aims to make an emotional connection with customers.

How can story selling help you increase sales as a financial advisor? Here are five potential benefits:

  • Using stories to sell your services can allow you to grab the attention of prospective clients who may have become accustomed to tuning out traditional marketing messages.
  • You have the opportunity to structure stories in ways that allow you to weave in elements of your business’s mission and values, which can make your brand “stickier” and more memorable.
  • Story selling can help you break down the more complex details of your services or products in a way that’s easier for prospective clients to digest.
  • Building emotional connections through your marketing could help you gain more clients if they’re able to see themselves through the lens of the stories you’re telling.
  • Story selling doesn’t end once someone becomes your client; existing clients may generate more sales for your business if your marketing messaging allows them to identify additional financial planning needs.

Selling stories, not just products or services, can also give you a competitive edge in your chosen niche. Prospective clients may be more likely to gravitate toward an advisory firm that’s telling stories through marketing they’re able to identify with.

How to Implement Storyselling in Your Advisor Marketing Plan

There are a few ways to go about developing marketing stories for your business. Depending on the story you want to tell, you might:

  • Draw from your own experiences or those of your staff
  • Ask your existing clients to share their stories with you
  • Create hypothetical client stories

You may choose one of these options or all of them. When deciding which path to take it’s helpful to consider:

  • What your objective is in telling a marketing story
  • Who your intended audience is (i.e., who does this story need to resonate with?)
  • How to tell the story

When it comes to the “how” of storyselling, there are a variety of options you might consider. For example, if you’ve set up a professional advisor website you might start by including some client testimonials on the homepage. If the website also has a blog component, you might share a blog post breaking down a case study of how your services or products helped one of your clients, weaving in some direct quotes from them.

If you’re active on social media , you might tell stories through short or long-form videos. Email and direct mail marketing are two other possibilities for telling stories that prospective or existing clients are likely to connect with.

Once you’ve chosen the format your story will take, the next step is fleshing out the story. Here, the emphasis is on identifying the problem the (real or fictional) client faced and how you helped them to solve it. The goal is to inspire and motivate prospective clients who may be dealing with a similar issue to take the next step and contact you for help.

Example of Storyselling for Financial Advisors

A financial advisor sharing a story with clients to explain the potential benefits of financial planning.

The stories you tell as an advisor may depend largely on who you’re trying to reach with your marketing. Here’s an example of how you might structure a story if women are your primary target audience:

“The day Sarah’s life changed was the same as any other. She woke up, showered and dressed, had breakfast and prepared to head off to work. What she didn’t know was that before the day was over, her financial security would be threatened by a change she never saw coming.

Sarah’s spouse wanted a divorce. And now at the age of 43, she was starting over with very little money saved for retirement and quite a bit of debt.

Sarah came to us wanting to know how she could turn things around. She knew that statistically, women who experience divorce are often left at a significant financial disadvantage. And Sarah didn’t want to give up her original vision for retirement, which involved traveling the world.

We sat down and began working through the numbers, starting with her post-divorce debt and the assets she was able to leave the marriage with, which included a 401(k) and an IRA. We assessed Sarah’s risk tolerance, budget and goals to create a plan that now has her on track to retire at 65 with $2 million in savings.

‘I was worried about what my retirement might look like or if I might be able to retire at all,’ Sarah says. ‘But now I’m confident that despite the divorce, my goals are still within reach.’”

This is a short, condensed example of what storytelling might look like in action. But it’s designed to give you an idea of how to structure a good story that has:

  • A protagonist or hero (Sarah)
  • A conflict (her divorce)
  • A guide (that’s you)
  • A resolution (getting her retirement plan on track)

If you need more examples, you might consider giving “Storyselling for Financial Advisors: How Top Producers Sell” a read. The book, authored by Scott West and Mitch Anthony, explores what successful financial advisors know about gaining clients’ trust through the use of storytelling. Rather than inundating clients with facts and figures or technical details, storyselling as it’s explained here is all about tapping into intuition and client emotions to sell your services.

Frequently Asked Questions

What is the difference between storytelling and story selling.

Storytelling is what it sounds like—communicating a story. The purpose of doing so may be to attract interest, gain sympathy or warn others about someone or something. With story selling , the end goal is to persuade those reading or listening to the story to act. That most often means buying something, whether it’s a product or service.

How do you sell through story selling?

The key to successful storyselling for financial advisors lies in creating a story that your target audience will resonate with and be inspired by. A compelling story is tailored to speak to the pain points of prospective clients in a way that’s relatable and prompts them to act, which often means contacting you to schedule a chat.

Why should advisors use storyselling?

Storyselling can give you an advantage as an advisor if you’re able to make your business stand out and your stories reach your target audience. Telling stories adds a human element and warms up what might otherwise come across as a cold sales pitch. Clients who come to you because of the stories you tell may be more likely to remain your clients over the long term if you’re continually speaking to their evolving needs.

Bottom Line

Financial advisors discussing a storyselling strategy.

Storyselling might be a new concept to you but it could be worth diving into if you’re ready to inject some new life into your marketing. The most important thing to remember is that you need to know your clients—and the issues they might be facing—to tell stories that they’ll want to listen to.

Tips for Growing Your Advisory Business

  • Marketing can help you connect with new clients. But if you have limited time or a limited budget to promote your business, you may consider an online lead generation service. SmartAsset AMP (Advisor Marketing Platform)  is our holistic marketing service that financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation.  Get started today .
  • Working with a professional marketing agency for financial advisors is something you might think about if you have little experience with marketing. An agency can evaluate your goals and ideal client profile to help you build a customized campaign. If you’re shopping around for an agency, take time to research their background and ask for tangible proof of the results they’ve been able to achieve for other advisors.

Photo credit: ©iStockPhoto/shapecharge, ©iStockPhoto/Drazen Zigic, ©iStockPhoto/VioletaStoimenova

SharpSheets

Trucking Business Plan PDF Example

Avatar photo

  • March 5, 2024
  • Business Plan

the business plan template for a trucking business

Creating a comprehensive business plan is crucial for launching and running a successful trucking business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your trucking business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a trucking business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your trucking business concept into reality. Let’s dive in!

Our trucking business plan is formulated to encompass all essential aspects required for a thorough and strategic framework. It outlines the company’s operational strategies, marketing plans, industry landscape, competition, management structure, and financial forecasts.

  • Executive Summary: Provides a concise overview of the trucking company’s business model, highlighting the key aspects of market analysis, management capabilities, and financial strategy.
  • Shipping Routes & Operations: Describes the geographic scope and operational logistics that enable the company to provide efficient transportation solutions.
  • Services & Rates: Details the specific transportation services offered by the company, along with a transparent and competitive pricing structure.
  • Key Stats: Presents crucial statistics that underscore the size, growth, and dynamics of the trucking industry.
  • Key Trends: Highlights the evolving trends within the trucking sector that could influence business operations and opportunities.
  • Key Competitors: Provides an assessment of the competitive environment, delineating how the company distinguishes itself from other market players.
  • SWOT Analysis: Conducts a comprehensive examination of the internal and external factors that impact the company’s strategic positioning.
  • Marketing Plan: Articulates the marketing strategies devised to enhance the company’s market reach and customer engagement.
  • Timeline: Establishes critical milestones that the company aims to achieve in its journey towards expansion and market leadership.
  • Management: Introduces the experienced management team at the helm, detailing their roles in steering the company towards its objectives.
  • Financial Plan: Forecasts the 5-year financial trajectory of the trucking company, detailing expected revenue streams, profit margins, and the overarching financial strategy to ensure fiscal health and growth.

the business plan template for a trucking business

Trucking Business Plan

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The executive summary introduces your trucking business’s business plan, providing a succinct overview of your company and its logistics and transportation services. It should detail your market positioning, the variety of transport and logistical solutions you offer, its operational base, fleet size, and an outline of daily operations.

This section should also delve into how your trucking business will integrate into the regional or national market, including the number of direct competitors within the sector, identifying who they are, along with your business’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the company’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your trucking business’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Trucking Business Plan executive summary1

Dive deeper into Executive Summary

Business Overview

For a trucking business, the Business Overview section can be effectively divided into 2 main areas:

Shipping Routes & Operations

Briefly describe the core operational aspects of your trucking business, focusing on the geographical scope, such as regional, national, or international shipping routes.

Next, highlight the efficiency and reliability of your operations, emphasizing the strategic positioning of your hubs or depots for optimal logistics management. Explain why these routes and operations are advantageous in serving your target market and meeting customer demands.

Services & Rates

Detail the range of transportation and logistics services offered, from standard freight shipping to specialized services such as refrigerated transport, hazardous materials, or oversized loads.

Outline your pricing strategy, ensuring it reflects the value and competitiveness of your services within the industry. Highlight any flexible pricing options, bulk shipping discounts, or loyalty programs that provide added value to your clients, encouraging long-term partnerships and customer retention.

Make sure to cover here _ Shipping Routes & Operations _ Services & Rates

Trucking Business Plan PDF Example shipping routes

Market Overview

Industry size & growth.

In the Market Overview of your trucking business plan, begin by evaluating the size of the transportation and logistics industry and its growth potential. This analysis is essential for understanding the market’s breadth and pinpointing opportunities for expansion.

Key market trends

Continue by discussing recent market trends, such as the growing emphasis on supply chain efficiency, the rise of e-commerce driving demand for shipping services, and advancements in transportation technology like telematics and autonomous vehicles. For instance, highlight the need for versatile shipping solutions that accommodate a range of delivery timelines and product types, along with the increasing interest in eco-friendly and sustainable logistics practices.

Key Competitors

Next, assess the competitive landscape, which spans from large national carriers to smaller regional trucking companies, as well as alternative logistics services like intermodal transport. For example, underline what sets your trucking business apart, whether it’s through superior reliability, a broad spectrum of services, or niche expertise in certain types of cargo.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Trucking Business Plan market overview

Dive deeper into Key competitors

First, conduct a SWOT analysis for the trucking business, highlighting Strengths (such as a diverse fleet and reliable service), Weaknesses (including dependency on fuel prices or regulatory challenges), Opportunities (for instance, the expansion of e-commerce and the need for more shipping solutions), and Threats (such as economic fluctuations that may impact shipping volumes or the rise of digital freight matching platforms).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through strategic partnerships, competitive pricing, a strong online presence, and exceptional customer service. Emphasize the importance of building a reputable brand in the logistics industry, leveraging digital marketing, and participating in industry events to network with potential clients.

Finally, create a detailed timeline that outlines critical milestones for the trucking business’s initiation, marketing initiatives, client acquisition, and growth objectives. Ensure the business progresses with clear direction and purpose by setting realistic goals for service expansion, fleet enhancement, and possibly geographic extension of operations.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Trucking Business Plan strategy

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the trucking business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the trucking business toward its financial and operational goals.

For your trucking business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Trucking Business Plan management

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your Trucking business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your trucking business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Trucking Business Plan financial plan

Privacy Overview

Growthink logo white

Sample Mobile App Business Plan

Growthink.com Mobile App Business Plan Template

Download our Ultimate Mobile App Business Plan Template

Having a thorough business plan in place is critical for any successful mobile app venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A mobile app business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The mobile app business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your mobile app as Growthink’s Ultimate Mobile App Business Plan Template , but it can help you write a mobile app business plan of your own.

Example – AppInnovate Solutions

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to AppInnovate Solutions, a trailblazing mobile app company nestled in the vibrant heart of Miami, FL. We are dedicated to revolutionizing the local mobile app market by offering a comprehensive suite of bespoke development services. Our expert team specializes in Mobile App Development, UI/UX Design, App Testing, Quality Assurance, and ongoing Maintenance and Updates. Additionally, we provide Consultation and Project Management to ensure our clients’ visions are seamlessly brought to life. Leveraging our deep understanding of both the local and global market, we are committed to creating intuitive, engaging, and technologically advanced apps that meet the highest international standards of excellence.

Our foundation for success is deeply rooted in the vast experience of our founder, combined with our commitment to delivering superior apps at competitive prices. Since launching on January 4, 2024, as a Limited Liability Company, we’ve made significant strides, including establishing a strong local presence in Miami and developing a unique brand identity. These initial steps have positioned us as a leading contender in the mobile app industry, with our dedication to quality, innovation, and affordability setting us apart as the go-to choice for mobile app development in the region.

The Mobile App industry in the United States is experiencing explosive growth, currently valued at over $120 billion. This growth is driven by an increasing dependency on smartphones and tablets, with a notable shift towards personalized and user-friendly apps. AppInnovate Solutions is uniquely positioned to capitalize on these trends, focusing on custom mobile apps that cater to the specific needs of Miami’s residents and businesses. Furthermore, the rise of mobile commerce presents an exceptional opportunity for us to provide innovative solutions to businesses aiming to engage in this lucrative trend, ensuring our competitive edge in the fast-paced mobile app market.

Our initial market penetration strategy targets local residents and tourists in Miami, offering them innovative app solutions to enhance their daily lives and travel experiences. By tailoring our app’s features to meet the needs of Miami’s diverse population, we ensure a wide range of functionalities from local service recommendations to event discovery. Additionally, we aim to serve local businesses by offering advertising opportunities and business tools within our app, fostering a beneficial relationship that enhances visibility for businesses while providing valuable, localized offers to our users.

Our main competitors are Pixels Media Inc, SDSol Technologies, and Business Site Designer, each offering a range of digital services. Despite the strengths of these companies, AppInnovate Solutions stands out for our ability to deliver high-quality, affordable mobile applications. Our competitive advantage lies in our innovative development techniques, cost-effective pricing, and deep understanding of the Miami market. This unique combination enables us to offer applications that are not only financially accessible but also resonate well with our target audience, ensuring high user engagement and satisfaction.

AppInnovate Solutions offers a comprehensive range of services, including Mobile App Development, UI/UX Design, App Testing, Quality Assurance, and ongoing Maintenance and Updates. Our pricing strategy is designed to cater to a broad spectrum of clients, ensuring affordability without compromising on quality or functionality. Our promotional strategy is centered around online marketing, leveraging social media, SEO, and email marketing to build a strong digital presence. Additionally, we plan to engage with the local community through events and partnerships, complemented by a referral program to organically grow our user base. This multifaceted approach aims to not only attract but also retain customers by establishing a strong brand presence and fostering community engagement.

To ensure the success of AppInnovate Solutions, we will engage in continuous market analysis, provide exceptional customer support, regularly update our app based on user feedback, and maintain rigorous quality assurance standards. Our operational strategy also includes targeted marketing campaigns, careful financial management, and fostering partnerships with other businesses. Crucially, we will focus on compliance, security, and fostering a collaborative work environment. Upcoming milestones include securing initial funding, finalizing product development, achieving operational stability, reaching 1,000 active users, and generating significant monthly revenue. These steps are designed to systematically reduce risks and establish a stable foundation for our long-term success.

Under the leadership of our CEO, Dylan Torres, AppInnovate Solutions boasts a management team with unrivaled expertise and a track record of success in the mobile app industry. Torres’s extensive experience and strategic vision are instrumental in navigating the complexities of app development and market penetration. His leadership ensures that our team remains focused on innovation, user experience, and scalability, driving AppInnovate Solutions towards achieving our ambitious goals.

Welcome to AppInnovate Solutions, a pioneering mobile app company catering to the vibrant community of Miami, FL. As a local mobile app business, we pride ourselves on filling the void in high-quality local mobile app services in the area. Our dedication to innovation and excellence sets us apart, ensuring we meet the diverse needs of our customers with unparalleled precision and creativity.

At AppInnovate Solutions, our offerings encompass a comprehensive suite of mobile app development services designed to bring your digital visions to life. Our expertise in Mobile App Development is complemented by our deep understanding of User Interface (UI) and User Experience (UX) Design, ensuring that every app we create is not only functional but also intuitive and engaging for users. We are committed to excellence through our rigorous App Testing and Quality Assurance processes, ensuring that every product we deliver operates flawlessly. Additionally, we provide ongoing App Maintenance and Updates to keep our clients’ applications at the forefront of technological advancements. Understanding the complexities of app development, we also offer Consultation and Project Management services to guide our clients through every step of the development process, ensuring a smooth and efficient journey from concept to launch.

Located in the heart of Miami, FL, AppInnovate Solutions is strategically positioned to serve the vibrant and diverse community of this dynamic city. Our deep understanding of the local market, combined with our global outlook, enables us to create apps that resonate with local users while meeting international standards of excellence.

Our unique position for success is rooted in the rich experience of our founder, who has a proven track record of running a successful mobile app business. This experience, combined with our commitment to creating superior apps at affordable prices, positions us as a formidable competitor in the mobile app industry. Our dedication to quality, innovation, and affordability makes us the preferred choice for mobile app development in Miami, FL.

Since our inception on January 4, 2024, AppInnovate Solutions has made significant strides as a Limited Liability Company. Our journey began with the creation of a distinct logo and the careful selection of our company name, which reflects our mission and values. Finding an ideal location in Miami has enabled us to establish a strong presence in the local market. These foundational steps mark the beginning of our journey towards becoming a leader in the mobile app development industry.

The Mobile App industry in the United States is currently booming, with a market size of over $120 billion. This industry has shown consistent growth over the past few years, and is expected to continue expanding at a rapid pace in the coming years. With the increasing reliance on smartphones and tablets for everyday tasks, the demand for mobile apps is only expected to rise.

One of the key trends in the Mobile App industry is the shift towards personalized and user-friendly apps. Customers are now looking for apps that cater to their specific needs and provide a seamless user experience. This trend bodes well for AppInnovate Solutions, as their focus on creating customized mobile apps for customers in Miami, FL aligns perfectly with this growing demand for personalized solutions.

Another trend in the Mobile App industry is the rise of mobile commerce, with more and more consumers using apps to make purchases and manage their finances. This presents a great opportunity for AppInnovate Solutions to tap into this market and offer innovative solutions for businesses looking to capitalize on the mobile commerce trend. By staying ahead of industry trends and providing top-notch mobile app development services, AppInnovate Solutions is well-positioned to thrive in the competitive Mobile App industry.

Below is a description of our target customers and their core needs.

Target Customers

AppInnovate Solutions will target local residents in its initial market penetration strategy. These customers are the backbone of the application’s user base, seeking innovative solutions to enhance their daily lives. The app will tailor its features to meet the specific needs and preferences of Miami’s diverse population, covering a wide range of functionalities from local service recommendations to event discovery.

The company will also focus on Miami’s vibrant tourist population. Visitors to the city are always in need of reliable, easy-to-use tools that can help them navigate the local scene, discover hidden gems, and manage their travel logistics effortlessly. By integrating features that cater to this segment, AppInnovate Solutions is set to become an indispensable travel companion for those exploring Miami.

Furthermore, AppInnovate Solutions will extend its reach to local businesses looking for innovative ways to connect with customers. By offering advertising opportunities and business tools within the app, it will create a symbiotic relationship that benefits both the businesses by increasing their visibility and the app users by providing them with tailored, local offers and services.

Customer Needs

AppInnovate Solutions meets the growing demand for high quality and functional mobile apps among Miami residents. Customers expect seamless, intuitive user experiences from their applications, which can range from everyday utility tools to complex business solutions. Our commitment to excellence ensures that each app we develop not only meets but exceeds these expectations, providing users with reliable, cutting-edge technology at their fingertips.

In addition to quality and functionality, there is a significant need for apps that are tailored to the specific lifestyles and interests of Miami’s diverse population. AppInnovate Solutions addresses this by offering customized apps that cater to various demographics, including tourists seeking to explore the city, locals in need of convenient service apps, or businesses looking to enhance their operational efficiency. By focusing on the unique needs of each segment, we ensure our apps provide relevant and valuable solutions for all users.

Moreover, with the increasing concern for digital security, AppInnovate Solutions prioritizes the protection of user data and privacy. Customers can trust that the apps they use are not only efficient and personalized but also secure against digital threats. This commitment to security fosters a trustworthy relationship between AppInnovate Solutions and its users, making it a go-to source for mobile app solutions in Miami.

AppInnovate Solutions’s competitors include the following companies: Pixels Media Inc, SDSol Technologies, and Business Site Designer.

Pixels Media Inc offers a wide range of digital services, including mobile app development, web design, and digital marketing. Their products target small to medium-sized businesses looking for comprehensive digital solutions. The price points for their services vary depending on the complexity and scope of the project, with custom quotes provided to prospective clients. Pixels Media Inc generates revenue primarily through project-based work and ongoing support contracts, with annual revenues estimated in the mid-range for the industry. The company operates primarily in the Miami area but has also served clients across the United States. Key strengths include a strong portfolio of successful projects and a multidisciplinary team. A potential weakness is their focus on a broad range of services, which might dilute their expertise in mobile app development specifically.

SDSol Technologies specializes in custom software and mobile app development. They offer solutions tailored to the needs of startups, small businesses, and large corporations. Their pricing model is project-based, with costs reflecting the complexity and custom requirements of each project. SDSol Technologies has a notable presence in Miami, Florida, but also caters to clients nationally and internationally. The company boasts significant annual revenues, indicating a robust client base and a successful business model. A key strength of SDSol Technologies is their extensive experience in developing innovative technology solutions. However, their high focus on custom projects may result in higher price points, which could be a barrier for smaller businesses with limited budgets.

Business Site Designer provides website design and development, mobile app development, and e-commerce solutions. They cater to small and medium-sized businesses, offering competitive pricing for their services. The company’s revenue comes from a mix of project-based fees and ongoing maintenance contracts. Business Site Designer operates primarily in Miami, FL, serving clients both locally and across various regions in the United States. Their strength lies in offering affordable solutions for businesses looking to establish or enhance their online presence. However, their focus on affordability might impact the customization and advanced features available in their mobile app development services.

Competitive Advantages

At AppInnovate Solutions, we understand the critical role that mobile applications play in today’s digital-centric world. Our core competitive advantage lies in our ability to create superior applications at a price point that is highly affordable for our clients. This unique positioning allows us to cater to a broad spectrum of businesses, from startups to established enterprises, ensuring that every organization can leverage the power of mobile technology without breaking the bank. Our commitment to quality and affordability does not mean a compromise on features or functionality; instead, we use innovative development techniques and efficient project management to deliver top-notch applications that meet our clients’ specific needs.

Beyond our competitive pricing and high-quality development, another of our key advantages is our deep understanding of the local market dynamics in Miami, FL. This localized insight enables us to design and develop applications that resonate well with our target audience, fostering greater user engagement and satisfaction. We also place a high emphasis on user experience (UX) design, ensuring that our apps are not only functional but also intuitive and enjoyable to use. This focus on UX is complemented by our dedication to incorporating the latest technological advancements, such as AI and machine learning, to enhance app functionality and provide a more personalized user experience. Through these concerted efforts, we ensure that our clients stay ahead of the curve in a highly competitive digital landscape.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

AppInnovate Solutions emerges as a comprehensive service provider in the realm of mobile application development, catering to the diverse needs of businesses aiming to enhance their digital footprint. Through a blend of technical expertise and innovative strategies, AppInnovate Solutions offers a range of services designed to bring ideas to life and ensure their successful implementation in the competitive market.

At the core of its offerings, Mobile App Development stands out as a pivotal service. AppInnovate Solutions specializes in creating custom mobile applications tailored to the specific requirements of each client. Whether for iOS, Android, or cross-platform solutions, the team leverages the latest technologies and methodologies to deliver robust, scalable, and high-performing apps. Clients can expect to invest an average of $20,000 to $50,000 for a comprehensive mobile app development project, depending on the complexity and features required.

User Interface (UI) and User Experience (UX) Design services are critical to ensuring that the applications not only perform well but also offer an intuitive and engaging user experience. AppInnovate Solutions places a strong emphasis on designing interfaces that are visually appealing and user-friendly. By understanding the target audience and business goals, the team crafts UI/UX designs that enhance user satisfaction and drive engagement. These services are typically priced from $5,000 to $15,000, reflecting the scope of the design work and the intricacies involved in creating a seamless user experience.

Ensuring the quality and reliability of mobile applications is paramount, which is why App Testing and Quality Assurance form an essential part of the service lineup. AppInnovate Solutions employs a rigorous testing methodology to identify and rectify any issues, ensuring that the final product is of the highest quality. This process includes functional testing, performance testing, usability testing, and security audits. The cost for app testing and quality assurance services ranges from $3,000 to $10,000, varying with the application’s complexity and the depth of testing required.

App Maintenance and Updates are crucial for keeping applications relevant and functioning optimally post-launch. AppInnovate Solutions provides ongoing support to address any technical issues, incorporate new features, and adapt to evolving user needs or technological advancements. Clients can expect maintenance and update services to cost between $1,000 and $4,000 per month, depending on the level of support and frequency of updates needed.

Lastly, Consultation and Project Management services are offered to guide clients through the development process, from conceptualization to launch and beyond. AppInnovate Solutions acts as a strategic partner, offering expert advice on market trends, technology selection, and project execution. This holistic approach ensures that projects are delivered on time, within budget, and to the client’s satisfaction. Consultation fees are typically charged on an hourly basis, with project management services priced between $10,000 and $25,000, based on the project’s scale and complexity.

Through its comprehensive suite of services, AppInnovate Solutions positions itself as a key player in the mobile app development industry, committed to delivering high-quality solutions that meet the evolving needs of businesses in today’s digital landscape.

Promotions Plan

AppInnovate Solutions, focusing on captivating the mobile app market in Miami, FL, embarks on a strategic journey to draw customers through a blend of innovative promotional methods. Online marketing stands at the forefront of these strategies, leveraging the power of social media, search engine optimization (SEO), and email marketing campaigns to create a robust digital presence. AppInnovate Solutions will utilize social media platforms to engage with the community, share insights about the app’s features, and provide value to potential users. By crafting content that resonates with the target audience, the company expects to foster a loyal following that eagerly anticipates app updates and releases.

In addition to social media, AppInnovate Solutions will employ SEO techniques to ensure that its website ranks highly in search engine results, making it easier for potential customers to discover their app. This approach includes optimizing website content with relevant keywords, improving site speed, and ensuring mobile-friendliness, all critical factors in enhancing online visibility.

Email marketing campaigns will serve as another pillar in AppInnovate Solutions’ promotional strategy. By collecting email addresses from interested users, the company will send out regular newsletters that provide exclusive insights, tips, and offers related to their mobile app. This direct line of communication will help in building a community of engaged users who are more likely to advocate for the app within their circles.

Beyond online marketing, AppInnovate Solutions will tap into local events and partnerships within Miami, FL. Participating in tech expos, local meetups, and community events will allow the company to demo their app directly to potential users, gather instant feedback, and enhance brand visibility. Collaborating with local businesses and influencers who share a similar target audience will amplify the app’s reach and credibility through co-marketing efforts.

Referral programs will also play a crucial role in attracting new customers. By incentivizing current users to refer friends and family, AppInnovate Solutions expects to grow its user base organically. These programs will not only increase the number of app downloads but also foster a sense of community among users.

In conclusion, AppInnovate Solutions embarks on a comprehensive promotional journey, leveraging online marketing, local engagement, and referral programs to attract customers in Miami, FL. Through these methods, the company expects to establish a strong digital presence, build a loyal community, and drive app downloads, ensuring its success in the competitive mobile app market.

Our Operations Plan details:

  • The key day-to-day processes that our business performs to serve our customers
  • The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of AppInnovate Solutions, there are several key day-to-day operational processes that we will perform.

  • Market Analysis: Conduct continuous market research to stay updated on industry trends, customer needs, and competitor activities. This ensures that AppInnovate Solutions can adapt and evolve to meet market demands.
  • Customer Support: Provide exceptional customer service, including a responsive help desk, FAQs, and troubleshooting guides. This helps to resolve user issues promptly and maintains high customer satisfaction.
  • App Development and Updates: Regularly update the app for performance improvements, new features, and bug fixes, based on user feedback and technological advancements.
  • Quality Assurance: Implement rigorous testing processes for every update and new feature release to ensure the app remains reliable, user-friendly, and free of bugs.
  • User Feedback Collection: Actively seek and analyze user feedback through surveys, app reviews, and social media engagement to understand user needs and preferences better.
  • Marketing and Promotion: Execute targeted marketing campaigns to attract new users and retain existing ones. This includes social media marketing, email campaigns, and local advertising in Miami, FL.
  • Financial Management: Monitor and manage the company’s finances, including budgeting, forecasting, and financial reporting, to ensure sustainable business operations and profitability.
  • Partnership Management: Cultivate and maintain partnerships with other businesses, such as tech suppliers, marketing agencies, and other relevant stakeholders, to enhance service offerings and expand market reach.
  • Compliance and Security: Ensure the app and its operations comply with legal and regulatory requirements, including data protection laws. Implement robust security measures to protect user data and privacy.
  • Team Collaboration and Communication: Foster a collaborative work environment with regular meetings, clear communication channels, and team-building activities. This ensures that all team members are aligned and motivated.
  • Performance Monitoring: Use analytics tools to monitor app performance, user engagement, and operational efficiency. This data will guide strategic decisions and operational adjustments.

AppInnovate Solutions expects to complete the following milestones in the coming months in order to ensure its success:

  • Secure Initial Funding : Acquire seed funding or early-stage investment to cover initial operational costs, including development, marketing, and staffing. This is critical for getting the business off the ground and to support activities leading up to and following the launch.
  • Finalize Product Development : Complete the development phase of the mobile app with all intended features functioning as planned. This involves iterative testing, user feedback incorporation, and ensuring the app is fully operational for public use.
  • Acquire Necessary Licenses and Permissions : Depending on the nature of the app, certain permissions or licenses may be required. Ensuring all legal and regulatory compliance is met before launch is crucial to avoid any operational hiccups.
  • Launch the Mobile App : Officially release the app on relevant platforms (e.g., Apple App Store, Google Play Store). This milestone marks the transition from development to operational status and begins the process of user acquisition.
  • Implement a Marketing Strategy : Develop and execute a comprehensive marketing plan that includes social media, content marketing, paid advertising, and possibly influencer partnerships to increase app visibility and attract users in Miami, FL.
  • Achieve Operational Stability : Ensure that all backend systems (e.g., server infrastructure) are robust and can handle increasing loads. Operational stability also involves establishing customer support channels to handle queries and feedback.
  • Reach 1,000 Active Users : Achieve a user base of at least 1,000 active users. This milestone is critical for validating the app’s market fit and serves as a foundation for scalability.
  • Establish Partnerships with Local Businesses or Organizations : For an app serving customers in Miami, FL, partnerships with local businesses or community organizations can enhance the app’s value proposition and drive user growth.
  • Get to $15,000/Month in Revenue : This financial milestone is crucial for proving the business model’s viability. Achieving this level of revenue signifies a healthy demand for the app’s offerings and supports further investment in growth.
  • Expand the Team : As the business grows, expanding the team to include roles critical for scaling, such as sales, marketing, and product development, is necessary to support and sustain growth. These milestones are designed to systematically reduce the risks associated with starting and scaling a new mobile app business, ensuring a stable foundation for future success.

AppInnovate Solutions management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Dylan Torres, CEO

Dylan Torres brings to AppInnovate Solutions a wealth of experience and a proven track record of success in the mobile app industry. As a seasoned entrepreneur, Torres has previously spearheaded a mobile app business, demonstrating not only his capability to navigate the complex landscape of app development but also his skill in leading a tech company to achieve its strategic goals. His experience is vital in guiding AppInnovate Solutions through the various phases of growth, from product development to market penetration. Torres’s leadership is foundational to the company’s ambitions, ensuring that the team stays focused on innovation, user experience, and scalability to achieve lasting success.

To achieve our growth objectives, AppInnovate Solutions requires $316,000 in funding. This investment will be allocated towards capital investments such as location buildout, equipment, and initial working capital, covering essential operational costs like staff salaries, marketing, and insurance. This strategic financial planning is crucial for supporting our activities from development through to launch, ensuring a smooth trajectory towards profitability and long-term success.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Mobile App Business Plan Example PDF

Download our Mobile App Business Plan PDF here. This is a free mobile app business plan example to help you get started on your own mobile app plan.  

How to Finish Your Mobile App Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your mobile app business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Growthink logo white

Political Wire

GOP Research Failed Again in New York

March 5, 2024 at 10:00 am EST By Taegan Goddard Leave a Comment

Brett Di Resta : “The Suozzi-Pilip race is actually a good example of how research, or the lack of it, influences campaigns, even if it goes unnoticed. Mazi Pilip’s financial difficulties illustrate that point. Pilip and the GOP bragged about how three research firms combed her record and gave her a clean bill of health.”

Said Nassau Republican chairman Joe Cairo: “We know everything we need to know about Mazi.”

“However, the research from the Democratic Congressional Campaign Committee in Washington unearthed the fact that Pilip was embroiled in a lawsuit regarding her family’s medical practice. Later, Pilip’s financial disclosure revealed that she and her husband owed the IRS a substantial debt.”

“While these items aren’t nearly as interesting as Santos’ fake volleyball career or as lurid as his false Holocaust claims, they show that good research, or lack thereof, can undermine a candidate’s credibility.”

Favorite

Recent Posts

The filibuster’s days are numbered.

Sen. Kyrsten Sinema’s (I-AZ) decision not to run for re-election was good news for Democrats hoping to avoid an unpredictable three-way Senate race in Arizona. But it also means the…

Biden’s Plan Is to Bury Trump in Campaign Cash

“Joe Biden and his allies intend to bury Donald Trump in campaign cash, hoping that the president’s financial advantage will be the equalizer in a race that’s becoming more of…

Jon Tester Holds Edge in Re-Election Race

A new Emerson College/The Hill poll in Montana finds Sen. Jon Tester (D) leading challenger Tim Sheehy (R) in the U.S. Senate race, 44% to 42% with 14% undecided. Save…

Nikki Haley to Exit Republican Presidential Race

Nikki Haley plans to suspend her Republican presidential primary bid in a speech Wednesday morning, the Wall Street Journal reports. She is expected to make an appearance to deliver brief…

Biden Loses Caucuses in American Samoa

PresidentBiden lost the Democratic presidential caucuses for American Samoa to a little-known candidate, Jason Palmer (D), ABC News reported. With 99% of the expected vote reporting, Palmer leads with 56%…

Behind Mike Johnson’s Dysfunctional Majority

Punchbowl News: “There’s plenty of legitimate criticism of Johnson from members of his own leadership. The Louisiana Republican is slow to make decisions, they assert. He’s preoccupied with leaks. He…

California’s Jungle Primary Was an Early Loser

The New York Times says there was, arguably, one clear loser in the California Senate primary: “the top-two, nonpartisan primary system that California voters adopted in 2010. The system was…

Quote of the Day

“Frankly our country is dying.” — Donald Trump, quoted by the New York Times, in a Super Tuesday victory speech filled with dark imagery and messaging. Save to Favorites

Warning Signs for Trump in Haley Vote

New York Times: “At this point, the Biden team is studying Ms. Haley’s showing in suburban areas almost as closely as the Trump operation is, if not more.” “The most…

Trump’s Speech Gave Visions of American Apocalypse

“If this is what he sounds like when he wins, imagine how he would react to defeat,” The Guardian reports. “Donald Trump swept to victory after victory on Super Tuesday,…

Protesters Shut Down Adam Schiff’s Victory Speech

“Protesters calling for a cease-fire in Gaza interrupted a speech by Rep. Adam Schiff (D-CA) on Tuesday night — loudly shouting him down and forcing him to truncate his remarks,…

Utah GOP Caucus Marred by Chaos

Salt Lake Tribune: “The Utah GOP urged caucus attendees to pre-register through their website to make the check-in process go smoothly. But chaos ensued Tuesday night after digital systems crashed…

New Jersey Councilman Groped Sleeping Man

New Jersey councilman Matthew Conlon (R) was charged with criminal sexual contact for allegedly groping a man as he was sleeping on a couch at a mutual friend’s home, the…

Nikki Haley Wins Vermont Primary

Nikki Haley narrowly defeated Donald Trump in Vermont’s Republican primary, the Burlington Free Press reports. Save to Favorites

Schiff and Garvey Headed for Senate Showdown

“Concluding California’s most competitive U.S. Senate primary in a generation, Rep. Adam Schiff and retired Dodgers All-Star Steve Garvey will square off in November to represent the Golden State in…

Texas Speaker Heads To Runoff as Paxton Takes Revenge

“Republican Texas House Speaker Dade Phelan headed to a primary runoff against challenger David Covey, bruising one of the state’s most powerful figures and emboldening state Attorney General Ken Paxton…

Voters in New Alabama District Given Bad Poll Info

“More than 6,000 voters in a newly formed congressional district drawn to boost Black voting power in Alabama received postcards with incorrect voting information ahead of Tuesday’s primary, alarming advocates…

Kansas Lawmaker Arrested on Gun Charge

Kansas state Rep. Carl Maughan (R) was arrested on suspicion of traffic violations and possession of a firearm while under the influence, the Kansas City Star reports. Save to Favorites

Trump Meets with Elon Musk

“Donald Trump, who is urgently seeking new donors to aid his presidential campaign, met on Sunday in Palm Beach, Fla., with Elon Musk, one of the world’s richest men, and…

Supreme Court Opens the Door to Potential Chaos

Rick Hasen: “The Supreme Court’s unsigned majority opinion in Trump v. Anderson, ending Colorado’s attempt to disqualify Donald Trump from appearing on the ballot as an insurrectionist, is a remarkable…

About Political Wire

goddard-bw-snapshot

Goddard spent more than a decade as managing director and chief operating officer of a prominent investment firm in New York City. Previously, he was a policy adviser to a U.S. Senator and Governor.

Goddard is also co-author of You Won - Now What? (Scribner, 1998), a political management book hailed by prominent journalists and politicians from both parties. In addition, Goddard's essays on politics and public policy have appeared in dozens of newspapers across the country.

Goddard earned degrees from Vassar College and Harvard University. He lives in New York with his wife and three sons.

Goddard is the owner of Goddard Media LLC .

Praise for Political Wire

“There are a lot of blogs and news sites claiming to understand politics, but only a few actually do. Political Wire is one of them.”

— Chuck Todd, host of “Meet the Press”

“Concise. Relevant. To the point. Political Wire is the first site I check when I’m looking for the latest political nugget. That pretty much says it all.”

— Stuart Rothenberg, editor of the Rothenberg Political Report

“Political Wire is one of only four or five sites that I check every day and sometimes several times a day, for the latest political news and developments.”

— Charlie Cook, editor of the Cook Political Report

“The big news, delicious tidbits, pearls of wisdom — nicely packaged, constantly updated… What political junkie could ask for more?”

— Larry Sabato, Center for Politics, University of Virginia

“Political Wire is a great, great site.”

— Joe Scarborough, host of MSNBC’s “Morning Joe”

“Taegan Goddard has a knack for digging out political gems that too often get passed over by the mainstream press, and for delivering the latest electoral developments in a sharp, no frills style that makes his Political Wire an addictive blog habit you don’t want to kick.”

— Arianna Huffington, founder of The Huffington Post

“Political Wire is one of the absolute must-read sites in the blogosphere.”

— Glenn Reynolds, founder of Instapundit

“I rely on Taegan Goddard’s Political Wire for straight, fair political news, he gets right to the point. It’s an eagerly anticipated part of my news reading.”

— Craig Newmark, founder of Craigslist.

COMMENTS

  1. How to plan and write a budget for research grant proposal?

    Financial support is crucial for research. However, winning a research grant is a difficult task. A successful grant-winning application requires two key elements: one is an innovative research problem with best probable idea/plan for tackling it and appropriate planning of budget.

  2. How to Write a Financial Plan: Budget and Forecasts

    Financial plan templates and tools. Download and use these free financial templates and calculators to easily create your own financial plan. Download a free detailed sales forecast spreadsheet, with built-in formulas, to easily estimate your first full year of monthly sales. Get a full financial picture of your business with LivePlan's simple ...

  3. How to plan and write a budget for research grant proposal?

    A budget is the quantitative expression of a financial plan for future expenses on the project in a given period ... For example, if equipment such as color doppler is required, then justify the need of a device with respect to the proposed methodology of the study. ... Planning of the research budget begins with an innovative research question ...

  4. PDF Writing a Proposal Budget

    A budget is a financial proposal that reflects the work proposed. It outlines the expected project costs in detail, and should mirror the project description. ... For example, chemicals purchased for use on a specific project should only benefit that project. Restocking general chemical supplies used for a variety of purposes would benefit many ...

  5. PDF Preparing a Proposal Budget Toolkit

    For example, travel costs incurred for the P rincipal Investigator to obtain data on the topic of the research would generally qualify, but travel costs to attend a conference on a topic not related to the research would not. 2. Reasonable costs would generally be accepted as necessary per a "prudent" person's review. For example, the

  6. Sample Financial Plan

    Financial Planning is a comprehensive analysis of your needs, wants, and wishes today that's tailor-made just for you. Then looking into the future throughout your lifetime, your plan will estimate the confidence that these goals will be carried out using your income earning assets to pay for them. Then when the end comes, how best to ...

  7. Financial planning: A research agenda for the next decade

    We provide an informed discussion about challenges, opportunities and the future of research and practice in the field of financial planning over the next 10 years. As editors of Financial Planning Review , using a mix-methods approach and a survey of subject-matter expert views, we outline what we believe are some of the future key themes of ...

  8. How to Create a Financial Plan Like a Pro

    Here's a guide to help you create a financial plan like a pro in just eight steps. 1. Define Your Financial Goals. The first thing you need to do is decide where you're headed. What's your ...

  9. Financial Plans: Meaning, Purpose, and Key Components

    Financial Plan: A financial plan is a comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows , asset values ...

  10. How to Create a Personal Financial Plan (And Reach Your Goals ...

    3 How to Create a Personal Financial Plan in 8 Easy Steps. Step 1: Review your current situation. Step 2: Set short-term and long-term goals. Step 3: Create a plan for your debts. Step 4: Establish your emergency fund. Step 5: Start estate planning. Step 6: Begin investing in your future. Step 7: Get protected.

  11. Business Financial Plan Example: Strategies and Best Practices

    In this comprehensive article, we delve into the specifics of a business financial plan. We discuss its importance, the essential elements that make it up, and the steps to craft one successfully. Furthermore, we provide a practical example of a business financial plan in action, drawing upon real-world-like scenarios and strategies.

  12. Conducting Research in Financial Planning

    Abstract. Financial planning is an emerging profession supported by academic research that explores new planning techniques and understands household financial behaviors. This chapter provides an introduction for scholars who are new to the broad field of financial planning research. We begin by describing the differences between normative and ...

  13. PDF FINAL FINANCIAL PLAN

    The goal of SUNY's plan is to ensure the revitalization and quality of life in New York State. One of the core missions identified in the plan, Research and Innovation, directly affects how the RF will support SUNY in the future. The three goals of the RF's strategic plan support this mission, as the RF continues to strive for ways to:

  14. How to build a financial plan

    Here's a 3-step process for doing just that. 1. Pick a goal and identify your financial resources. Whether it's a short- or a long-term pursuit, your goal is the destination and your current income, debt, and spending and savings are the starting points. Identifying how much money you have coming in and going out will show you how much is ...

  15. 8 Keys to Good Financial Plans

    1. Setting financial goals. You can't make a financial plan until you know what you want to accomplish with your money—so whether you're creating it yourself or working with a professional, your plan should start with a list of your goals, both big and small, and the time horizons to accomplish them.

  16. Top 7 Financial Plan Templates with Examples and Samples

    Seven financial plan types are: Cash Flow Management: A stable financial situation is maintained by making a budget, keeping track of income and spending, and managing cash flow. Includes insurance, money for emergencies, and planning to manage risks, if something goes wrong.

  17. How to Prepare a Financial Plan for Startup Business (w/ example)

    7. Build a Visual Report. If you've closely followed the steps leading to this, you know how to research for financial projections, create a financial plan, and test assumptions using "what-if" scenarios. Now, we'll prepare visual reports to present your numbers in a visually appealing and easily digestible format.

  18. Financial Plan

    A financial plan is a document that covers an individual's current financial situation, short-term and long-term goals, and an in-depth strategy to achieve the goals. ... For example, a financial goal would be to save $10,000 by 2021. 4. ... the chance to work with real-world finance and research tools, and more. Discover Full-Immersion ...

  19. Financial Planning Methods: 3 Types & Excel Examples

    Depreciation. The part of a big purchase recording in the current period (year) Taxes. Taxes paid in the current period. Example P&L structure. The process of completing the three financial statements with relevant information requires three financial planning methods: Budget & business planning, Cash flow planning, and. Funds planning.

  20. Example Of A Financial Plan To Help You Create Yours

    Example of a financial plan. A personal financial plan typically includes the following baseline data: Your personal information e.g. Age, income, tax filing status, children, etc. Your financial goals and big picture overview (assets, debt, etc) A debt elimination plan. An investment plan (to build assets)

  21. How to Write a Research Plan: A Step by Step Guide

    Here's an example outline of a research plan you might put together: Project title. Project members involved in the research plan. Purpose of the project (provide a summary of the research plan's intent) Objective 1 (provide a short description for each objective) Objective 2.

  22. Personal Financial Plan Example: How to Plan For Financial Success

    Fred's personal financial plan example makes a few assumptions: He's currently earning $40,000 after tax but expects to get a 3% pay rise for at least the next five years. He has a housemate who is paying him $100 per week to help with the mortgage, but Fred only wants to live with someone for the next three years.

  23. How To Write a Research Plan (With Template and Examples)

    If you want to learn how to write your own plan for your research project, consider the following seven steps: 1. Define the project purpose. The first step to creating a research plan for your project is to define why and what you're researching. Regardless of whether you're working with a team or alone, understanding the project's purpose can ...

  24. What Is Storyselling for Financial Advisors?

    If you need more examples, you might consider giving "Storyselling for Financial Advisors: How Top Producers Sell" a read. The book, authored by Scott West and Mitch Anthony, explores what successful financial advisors know about gaining clients' trust through the use of storytelling.

  25. Sample Real Estate Business Plan

    Marketing Plan. Our marketing plan, included below, details our products/services, pricing and promotions plan. Products and Services. HomeHorizon Realty offers a comprehensive suite of real estate services catered to meet the diverse needs of property buyers, sellers, and investors in the vibrant Tampa, FL real estate market.

  26. Sample Real Estate Investment Business Plan

    The real estate investment business plan sample below will give you an idea of what one should look like. ... This involves market analysis, timing considerations, and financial planning to ensure the exit maximizes returns. The fee for Exit Strategy Planning typically ranges from $1,000 to $5,000, depending on the complexity and scale of the ...

  27. Trucking Business Plan PDF Example

    Whether you're an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your trucking business concept into reality. Let's dive in! ... Financial Plan: Forecasts the 5-year financial trajectory of the trucking company, detailing expected revenue streams, ...

  28. Sample Mobile App Business Plan

    Marketing Plan. Our marketing plan, included below, details our products/services, pricing and promotions plan. Products and Services. AppInnovate Solutions emerges as a comprehensive service provider in the realm of mobile application development, catering to the diverse needs of businesses aiming to enhance their digital footprint.

  29. GOP Research Failed Again in New York

    Brett Di Resta: "The Suozzi-Pilip race is actually a good example of how research, or the lack of it, influences campaigns, even if it goes unnoticed.Mazi Pilip's financial difficulties illustrate that point. Pilip and the GOP bragged about how three research firms combed her record and gave her a clean bill of health."