In your Lawn Care Business Plan-Finances need to be considered to increase Your chance for Success.
Finally, in your Lawn Care Business Plan-Finances need to be considered. Do you have enough money to get this Lawn Care Business off the ground properly? Yes you can start this business for next to nothing that is what is so great about it.
But before you know it or expect it you will need some money in some form or another. Do you have it in the form of savings? credit cards or a bank loan?
You should figure out your net worth. How do you do that? Well you add up everything you own (cash, market value of your vehicle, stocks), then add up everything you owe from what you owe on existing personal loans, balance on credit cards and what left owing on your mortgage. Subtract everything you owe from everything own, the difference is your net worth.
Once you have your net worth you need to look at the businesses finances as well. The three main parts of your business financially are the balance sheet that is used to track your business’ progress over time is your assets that the business owns minus the liabilities that the business owes equals the owners equity).
Second is the income statement (sales revenue minus expenses equals a profit or loss), which is a summary of how the performs from one year to the next.
Cash Flow is key to Lawn Care Business Plan-Finances
Lastly but probably the most important is the cash flow forecast. This forecast helps by looking at how sales even though they maybe good can still cause problems if it takes a long period of time to collect that money to pay bills incurred by your business.
If your forecast shows that over your slow period (usually winter months) you won’t have enough cash to pay your monthly debts then you will need to talk to your banker to make sure that you are prepared for this period.
When you are doing your Lawn Care Business Plan-Finances it should be broken down into various stages such as start up, six months, year one, year two and year three.
By making goals for these early points in the life of your business you will double your chances for success.
“Keep It Simple to Succeed” lets get out there and make our lawns healthy and green!