Topic > The importance of financial planning in business

1. IntroductionWe could see the interest and effort put in by Anna Lian to improve the standard of giving back to society. However, there are things that Anna should look into before proceeding before jumping into creating more software. Therefore, this report serves as a guide to provide Anna with essential information in the business world. 1.1 Financial planning What is financial planning? According to Pearson, financial planning is the need to identify shortfalls and surpluses. So the sentence explains everything very well. A shortage occurs when there is excess demand and a surplus occurs when there is excess supply. Therefore, it is very important for Anna Lian to understand the importance of financial planning as it would allow owners to exercise more control in the future and is the best way to monitor the company's assets. 1.2 Sources of financing To start a business, Anna is required to identify her sources of financing. For now, it may start small and may expand bigger in the future. While identifying sources of financing, certain factors should be kept in mind to choose which source would be reliable to meet the capital needs. First, the requested amount. In general, whether the business startup is small or large, the amount is very important. Depending on how big your business will be due to the cost of the product or service. Secondly, the purposes. What is the money for? Normally it would be included as an expense. It depends on the element in which the company intends to invest. Third, duration. It is very important for owners to understand why duration is a determining factor in choosing the financing source. It also determines the length of the working period. Fourth...... middle of the paper...... rental opinion of your work? Is it based on good information?• Who influences their and your opinions?• If they are not likely to be positive, what will convince them to support your project?• If you don't think you can win them over, how will you handle their opposition ?• Who else could be influenced by their opinions?• Can the company survive for a long time?• Can our company repay the loan?However, sometimes stakeholders are not interested in the financial accounts. They may be interested in other things. For example, incentives, company policy, rules and regulations and so on.2.2 Impact on businessIn Anna Lian's business, she will have to consider stakeholders such as financiers, investors, customers, public bodies and even government bodies.As long as a A wise decision is taken based on the situations, all parties involved will feel at ease.