You need money to get your business off the ground.
With a financial plan, you map out whether your plans are financially viable...
or whether you need a loan and how much. And you estimate when you will make a profit.
A financial plan includes 5 partial budgets.
One: With the investment budget, you determine how much money you need to get started.
Two: With the financial budget, you figure out how you are going to finance investments.
Will you use your own money or take out a loan?
Three: With the operating budget, you calculate whether you are going to make a profit or a loss.
Four: With the liquidity budget, you show your monthly income and expenditure.
And five: With the private budget, you know what you personally need to make ends meet.
These entrepreneurs talk about their experiences.
Well, a financial plan is really not my thing.
So with the help of my accountant and my husband, the 3 of us made it.
We had absolutely no financial plan. Time was our investment.
Look, the product is digital, so with digital products you don't necessarily have to...
Of course, you have to make a website, but we figured that out for ourselves.
We put all our own money into it.
The investments at the beginning were actually so low...
that we didn't really need a financially substantiated plan for that.
In the beginning, we didn't use financing.
We've been able to do it using our own resources.
Sarah, of course, had a full-time job, so she was comfortable.
And so I really just had a pot.
My initial capital was actually my savings.
So I didn't have to borrow either, or knock on a bank's door.
For the first 6 months, I could actually make ends meet.
In time, the investments became so serious...
that we actually did have to approach a bank...
to take that next growth step.
We had existed for 2 years and most banks naturally only want...
to provide money if there is a financial plan to back it up.
Or if you can provide 3 years of figures, which we couldn't.
In the end, there was only one bank that wanted to help with some sort of youth scheme.
They then managed to give us a loan of €800,000.
Well, just make sure that you have something of a buffer...
And possibly a partner who can support you.
So that you are not completely alone.
It's good to have healthy buffers, but you also want to continue growing.
And growing costs money, so you have to strike the right balance.
I think that's what entrepreneurship is about, taking risks to get what you want.
But as long as you have that perseverance...
you do find a way to move forward.
And now it is time for action.
Make a financial plan to get insight into your finances.
Do you need more money? Research what financing options are available.
Determine a good hourly rate.
Put aside money for unexpected expenses and quieter times in your business.
For more information, check out the KVK Book of Finance.
Want to know more?
Visit KVK.nl/en/starting.