To prepare a financial plan. If you do not have a business of your own or one you are planning to start, use one of the 'Example businesses'.

• Outline your key financial goals and objectives.
• Calculate your business establishment costs and working capital required to operate your business.
• Outline your production costs and pricing strategies. Calculate the contribution margins required for different product lines to achieve your financial goals (profit projections).
• Prepare an annual budget for your business. This budget should include cashflow estimates. Key performance indicators and targets should also be included, as well as an estimate of some operating cycles.
• Outline your plan for finance sourcing. What credit products will you use, if any? What documents will you need to support your application for finance? Prepare the documents you require to apply for finance.

Tips Explore the topics for information that will help you complete the financial plan. Try the activities for some practical experience in preparing financial plans. Discuss your financial plan with other learners and compare different strategies to identify an approach that suits your business.