Financial planning for your business is critical if you want to achieve your income goals.

Some small businesses just go from week to week hoping that they will have sufficient sales or provide services that will bring in suitable income. This hit and miss approach causes stress and all manner of problems.

A financial plan will establish financial goals, benchmarks and categories for the money you want to bring into your business. From that financial plan – or as part of it, you can create a cash flow forecast, which helps you manage your income and expenditure.

There are different ways to create a financial plan, and it doesn't have to be complicated. Here are two simple models you can choose from.

Model A.

Start with the end in mind. Decide how much turnover you want to bring into the business next year. Remember this is only the gross revenue. Then look at your different revenue streams and assess how much turnover is required from each unit.

For example, if you have...