It's important to tightly control expenses, such as payroll or supply chain, relative to growth.
An operations plan will also make it easier to determine if there is room to optimize your operations or supply chain via automation, new technology or superior supply chain vendors.
Small businesses frequently undervalue their assets, such as machinery, property or inventory, and fail to properly account for outstanding bills.
Your balance sheet, or financial position, offers a more complete view of your business's health than a profit and loss statement or a cash flow report.
A full expense plan includes regular expenses, expected future expenses and associated expenses.
Regular expenses are the current ongoing costs of your business, including operational costs like rent, utilities and payroll.
Projecting cash flow for the full year allows you to get ahead of any financial struggles or challenges.
It can also help you identify a cash flow problem before it negatively impacts your business.
You can find templates for these financial plan components via the SBA or SCORE.
You should have an estimate of your sales revenue for every month, quarter and year.