Starting up a business in the Philippines requires loads of paper works and many other legal steps to register and start earning a profit.
Other than passion and great ideas, it is necessary for businesses to comply the essential financial statements in order to flawlessly run your business.
1. Set a budget for start-up
A start-up budget is the projected cash flow of your business. It can’t be accurately stated so an estimate of the ins and outs of your money per month is alright.
Doing so is an important step in making sure that your budget is well planned and that you won’t be overspending your capital. It also allows lenders to understand your financial plan and be able to comfortably lend you money for your business’ financial needs.
2. Create a worksheet for start-up costs
Creating a worksheet for your projected costs will allow you to set priorities and support your estimated budget for the startup.
This statement will need more specific details of the purchases made or to be made. Including everything will set the expected cost for the following month.
3. Projected profit and loss statement
Any business, big or small, will need a break-even analysis. This enables the business owner and the lenders to foresee when the business will make a profit.
Loss statements are necessary as well since all businesses will come to a point of losing. This is helpful in a way in order to be aware of the best and worst times of the business.
4. Projected balance sheet
Building a balance sheet is a complicated step especially if you don’t have an accounting background. It basically calculates the value of all your business assets and how much the business owes.
It is best to consult a professional for this matter.
5. Statement for Sources and Uses of Funds
For start-up owners who are still groping in the dark, create a simple statement with the amount of how much will need for the start-up and a specific reason what you need the money for.