Thursday 02 Jul 2020       
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Our Blog - Subject 5


(5) The Business Plan as part of our analysis

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A Business Plan involves looking to the future of our business, whether we are entrepreneurs or a fully established company.


Through it we will try to trace the viability of our business (or business project) over several years, in some cases to create operation strategies and protocols and in other to obtain financing or investment.


To create a good Business Plan we have to be, above all, objective, rigorous and realistic with the information handled, the excessive optimism is not recommended, especially in the development of the economic and financial side.


Our plan has to analyze the viability of our business (or project) from different points of view: Market Analysis, Marketing, Production and HR, Economic and Financial Analysis and SWOT Analysis. In this post on our blog we focus on the analysis of the economic and financial viability of the plan and, for that, nothing better than practice ...




Create your Business Plan (Viability) from here in just a moment ...



Here we offer the possibility to create your own Business Plan (Economic and Financial section). To do this you will not have to enter any personal information, nor provide any e-mail, so you just have to fill in the basic economic data and trends that you foresee for some of them, answer to the question of verification (this is to prevent saturation produced by the action of robots) and click the [ Get Report ] button ... in a few seconds the display will show a report in pdf format, which consists of 4 pages having the following structure:

  • (Page 1) Analysis of Activity: Income statement, with development of sales, operating costs, staff costs, ..., profits or losses, generated funds, etc.

  • (Page 2) Investment / Financing and Cash Flow Analysis: Balance Sheet, Operational Needs of Funds and Cash Flow, with Net Cash Flow calculation.

  • (Page 3) Full Analysis of Ratios: Profitability, Financial Equilibrium, Growth of Value, Productivity, etc.

  • (Page 4) Analysis of Bankruptcy Probability : through the use of specific indicators that facilitate an environment prediction of two years for each financial year.

If you want to see an example of the type of report you can get, click the left button.


ATTENTION! Fill in the data carefully. If you have no clear the meaning of some of the concepts of the form, below, on this page, you have a section which explains everything in detail. You must fill in all fields; if you do not have any value, enter a zero.



Form for obtaining a BUSINESS PLAN to 3 years
Concepts Data (end of 2015)     2016       2017       2018  
Turnover   (±) %   (±) %   (±) %
Cost of sales   (±) %   (±) %   (±) %
Employee cost   (±) %   (±) %   (±) %
Other operating expenses   (±) %   (±) %   (±) %
Finance income   (±) %   (±) %   (±) %
Finance expenses                  
Income tax %                      

NON-Current Assets and new investments   (±)     (±)     (±)  
(A.P.) Average Period projected (days, 0 to 365). If you enter 0 it is automatically calculated
A.P. inventories    A.P. inventories    A.P. inventories    
Receivables (Clients, ...)  
A.P. receivables   A.P. receivables   A.P. receivables  
Cash and equivalents  
Trade payables  
A.P. payables   A.P. payables   A.P. payables  
Capital and increases   (±)     (±)     (±)  

% V.A.T. %   % VAT is used for the calculation of Receivables and Suppliers from average periods.

Report language: Verification question:



Take a few seconds to understand the different types of required fields ...


In the form you can see fields with different colors; we have done this to avoid confusion in the data entry, which could lead to obtaining incorrect reports:



The values entered in this type of field are considered by the system as fixed data for concepts and corresponding financial years. Most of them are in the starting column (2015), except Amortization, Financial expenses and Employees, for which we also have to enter the estimated value for the following financial years. Not allowed negative values.


In this type of field we will introduce percentage values (positive or negative), and will mean a percentage increase or decrease over the figure obtained in the previous financial year. It allows the introduction of decimal values (using the comma or point) and, to avoid confusion, the comma will be replaced by the point.


In this type of field we will introduce amounts (positive or negative), and will involve an increase or decrease over the figure obtained in the previous financial year. It is only used for the Non Current Assets (fixed assets, ...) and for Capital increases. For example, suppose we have projected an increase in sales in 2016 and that to meet this demand we have to buy a car by 25500 euros, this would be the number to enter in this field, ie, in this case the increase in fixed assets.


This type of field is located in the inner area of the form reserved for the introduction of Average Periods regarding the days of inventory, receivables days outstanding and payables days outstanding. Supports values between 0 and 365 that correspond to the number of days, and is used to calculate the amount of inventories, receivables and suppliers in planning financial years. If zero is entered, the system uses the data from the previous financial year.


Note that once the report has been obtained, the input data remain on the form (except the verification question), that lets you easily change and adjustment and get new reports approaching you to the desired results. In each report we can see, in the upper right, the day and time of its creation, which will facilitate the chronological handling.


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  • If you consider interesting and useful this article, please share it, sure you know someone who would find it useful too. If you are a LinkedIn member you can easily share it by clicking the appropriate icon.

  • If you think we can improve the generated reports you can leave your comments, any contribution is welcome.



Bankruptcy Probability


Do not forget to visit this interesting post of our blog: this is an on-line simulator that informs us, through the use of several indicators, about the probability of bankruptcy of a company in an environment of two years.


More information about the data requested on the form ...


The above form has been designed to facilitate obtaining a full Economic and Financial Analysis as a key part of our Business Plan. We can see several columns:


    • Column Concepts: here is the description of the various items requested. Below you can find a brief explanation of each of these concepts.

    • Column Data (end of 2015): here we have to enter the starting values, which are the final readings obtained or expected for 2015, for some of them we will have to introduce, into the following columns, the data of the expected developments, and for others it will not be necessary, since they will be calculated automatically. In this column, negative values are not allowed, and must take into account that there is a row corresponding to the income tax, the value is a percentage and will be assigned to other financial years.

    • Columns Next financial years: we aim to create a Business Plan for three years, and it is in these columns where we will introduce changes planned for most of the concepts discussed. In the fields in which it appears the symbol (±) means that admits positive and negative data, and the entered value will increase or decrease the value obtained in the previous column, either in percent (if in the field the % symbol is ) or numeric. In areas where there is no symbol, nor to the left nor to the right, the entered value will be taken as final, is the case of concepts Amortization, Financial Expenses and Number of Employees, which will fill with planned data for each financial year.


      Deserves a special mention interior area of the form, corresponding to the Average Periods: days of inventory, receivables days outstanding and payables days outstanding. In these fields we have to enter values between 0 and 365, bearing in mind that if you enter 0 means the system will calculate the period using data from the previous financial year. These values are used to obtain the figure for inventories, receivables and suppliers of each financial year, so it is a fact that will play an important role from the point of view of budget (commitment) in the final results, especially in terms of financing needs.


We then see a brief description of the concepts requested:


    • Turnover: value of our sales and / or services.

    • Cost of sales: is the value of goods, raw materials, work of others, etc, consumed or performed for the operation of our business, ie, for obtaining of turnover.

    • Employee cost: value of wages and salaries, salary compensations, social security contributions payable by the company, contributions to pension plans and other social expenses borne by the company, ...

    • Other operating expenses: here we have to enter the amount of the external services necessary for the operation of the business and not part of supplies, eg leasing and taxes, repairs and maintenance, independent professional services, transportation, insurance premiums, banking services, advertising, electricity, etc.

    • Amortization: amounts provided for depreciation of fixed assets in the different financial years.

    • Finance income: This is income obtained by the company as its performance portfolio or by placing fixed capital (savings accounts, deposits, financial assets, ...).

    • Finance expenses: Interest, fees, etc. of credits and loans obtained for our financing, discounts and customer financing, commercial financing expenses, ...

    • Income tax: percentage to be applied to the gross profit (profit before tax).

    • Non-current Assets: the value corresponding to the fixed assets (. Machinery and equipment, vehicles, buildings and structures, land, etc.), to intangible assets (patents, licenses, trademarks, software, etc.), to long-term investments and, in general, any other asset that the company can not or do not want to convert to cash at short term.

    • Inventories: value of assets held by the company for sale in operating process or to be transformed into finished products also for sale.

    • Receivables: customer balance (natural or legal persons who purchase goods and services from our operation) and other receivables, which are those that acquire goods and services other than the company usually supplied as intrinsic to its operation.

    • Treasury: amount of cash (cash and bank) and cash equivalents.

    • Trade payables: supplier balance (natural or legal persons who provide us with goods and services in our operation) and other suppliers, which are those that supply our goods and services other than for the purpose of our business.

    • Capital: initial and capital contributions made by the partners / shareholders of the company for the implementation and operation of the business.



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