Financial Planning

Below are a list of some of the main pitfalls in financing a business:

  • Underestimating the investment needed (the golden rule is to double your original estimate).
  • Not including room to manoeuvre in your budget for the start up period.
  • Forgetting your own personal financial requirement.
  • Not putting aside money to pay taxes when they are due.
  • Underestimating the difficulties of getting paid.
  • Cash flow planning means looking at every item of income and expenditure and estimating when it will impact the business.


  • A business plan is vital to the success of any new business – remember if you fail to plan you plan to fail.
  • It is worth plenty time and effort.
  • If you are starting up a business and have no previous figures to go on with the budget – be very thorough in your estimates.
  • In your operating budget you should forecast, turnover, gross profit overheads and net profit.
  • Include depreciation in your costs.
  • Know how to calculate costs of sales.
  • Dont underestimate your living expenses – be realistic, and include this figure in your budgets under drawings.
  • Cash flow is just as important as profit, a profitable business can still fail due to lack of cash.
  • Plan carefully so you can still meet all reasonable contingencies.
  • Match how your outgoings coincide or otherwise with your income.


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FDC Financial Services Ltd is regulated by The Central Bank of Ireland. Registered Office FDC House, Wellington Road, Cork. Registered in Ireland No: 069045