Well it is finally time; you want the financial freedom only possible in todays society that owning a business can provide. That is a tremendous and respectable goal that you have set out for yourself; and one that is certainly achievable. Business planning for the future is one of the most important things you can do that will ensure your accomplish your mission.
Business planning includes but is not limited to the following, financial and cash flow statements, economic forecast that could affect your business, marketing plans, sales projections, product mix estimates, advertising budgets, capital expenditure budgets, and hiring predictions.
Some of the above mention business planning inclusions might seem obvious; where as others to the novice may possibly be going a little too far, and too much work. If you feel that way, lets lay out a few simple examples that will enable you to understand the concept much better.
If in your business planning model you did not have economic forecast and you were in the housing market when the market crashed, either as a builder or supplier of products, what do you think your financial future would look like? It would probably not look to good; in fact it would be very bleak.
For another example lets scrutinize a farmer. They need to know what their crops are selling for at all times. They also need to predict future prices in order to know what crops to plant for the upcoming season.
Business planning is not something that should be taken superficially and not utilized to the full extent possible. Properly making use of this very important tool will not only help you plan for the future, it will enable you to be prepared for the present if something unexpected were to occur.