A well-written business plan tells the story of where your company is going. But without a solid financial foundation, that story may not stand up to scrutiny, especially when it lands on the desk of a bank, investor, or board of directors.
At BDO Malta, we often support clients who have put significant thought into their strategy and operations but need help translating that into a structured financial plan. Whether the aim is to raise funding, apply for a loan, or guide internal decision-making, credible financials are essential.
1. Financial projections need to reflect real business dynamics
The financial section of a business plan should not be a formality. It is a way of demonstrating that your commercial objectives are backed by a considered, structured approach to revenue, costs, and cash flow.
This typically includes:
- Revenue forecasts broken down by product, service, or market
- Cost assumptions that reflect operating structure and growth
- Detailed headcount breakdown and monthly payroll costs
- Projected balance sheet including details as to how the company will fund its operations (debt vs equity)
- Projected cash flow showing expected inflows, outflows, and timing
- A clear explanation of assumptions, ideally supported by market data or past performance
Even when the business is pre-revenue, it is important to show how you arrived at the figures. Lenders, regulators and investors are not just looking for ambition, they are looking for rationale and financial discipline.
2. The structure matters as much as the numbers
Inconsistent formatting, disconnected figures, or errors in calculations can weaken confidence in an otherwise strong business case. This is particularly important when different elements of the plan, such as your strategy, team plan, and financials, need to align. Some of the most common gaps we see include:
- Income statements that do not reconcile with the balance sheet
- Unrealistic break-even points or cost margins
- Omitted taxes, incorrect fiscal considerations or underdeveloped working capital assumptions
- Forecasts that span a short horizon or lack year-on-year comparison
- Incorrectly prepared by not reconciling to the balance sheet or omitted altogether cash flow statement
An external review can help address these issues before they become barriers.
3. Feasibility studies give depth to your projections
In many cases, clients benefit from going one step further with a financial or feasibility study. This involves looking beyond the headline numbers and testing whether the business model holds up under different scenarios. Feasibility studies can include:
- Market analysis and expected market share
- Financial sensitivity testing (e.g. price, volume, cost variables)
- Capital investment planning and funding gap analysis
- Evaluation of key risks to commercial success
These studies can be presented as standalone reports or integrated into the business plan.
4. Business plans should support both funding and internal clarity
While business plans are often developed for external use, particularly to secure investment, regulatory licenses or credit, they also serve an important internal function. They help business owners and management teams set measurable targets and align on how to achieve them. Having well-structured projections, supported by data and built into ongoing budgeting, gives businesses a reference point for how things are progressing and where adjustments may be needed.
Supporting your business plan with financial credibility
Whether you are starting a new venture, expanding into a new area, or revisiting your business model, having structured financial input can make a material difference. At BDO Malta, our accounting advisory team assists clients in preparing financial projections, feasibility studies, and valuation input to strengthen business plans, licence applications and funding proposals.
If you are working on a business plan and would like an experienced view on the numbers, we are here to help.
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