As any financial planner would tell you, a business plan is an essential part of any business. Good financial planning shows investors that you are serious about your business plans, ensures investors can actually understand your plans and goals for your business and show them – and you – what the predicted profits will be. A financial advisor can create the business plan you need in order to generate interest from lenders or angel investors so you can start up your business.
But that is not the only thing they do. Many business owners have future plans and goals to expand their business. They may intend to use the profits from the business to do this, but they may not realise that is not always possible. It is not wise to use up all your profits on expansion, because it might run you short of emergency funds, or worse still, the funds you need to pay suppliers, rent, insurance and all the many other costs of running the business.