Set up the necessary plans to secure funding

What do a financial plan and cash flow plan include?

A cash flow plan is a financial overview of all your company's (expected) transactions for the coming period (usually monthly and annually). Cash flow planning looks at the origin of your turnover and costs to estimate your cash balance at any given time.

A cash flow plan is part of a financial plan. After all, a financial plan goes a little deeper to understand the full financial situation of your company.

What's the difference?

A cash flow plan is used to convince financiers. It provides an overview of when cash comes in and out, where it comes from and where it goes.

A financial plan, on the other hand, serves to show accounting figures. With a classic financial plan, however, it is difficult to convince financiers.

However, it is important to have both available to form a clear picture of your company's financial situation.

What does a cash flow plan consist of?

A cash flow plan should always include the following elements:

• Operating budget: what are the revenues and costs? (operating cash flow)
• Investment budget: what investments will the company have? (cash flow from investments)
• Financing mix: where does the funding come from? (cash flow from financing)

What does a financial plan consist of?

A financial plan goes a little deeper than a cash flow plan. It follows a certain structure that is almost legally established. The plan should follow Art. 5:4. § 2. namely, it must contain the following elements:

• “a precise description of the planned activity;
• an overview of all sources of funding at incorporation, where appropriate, including the securities provided in that regard;
• an opening balance sheet drawn up in accordance with the schedule referred to in article 3:3, as well as projected balance sheets after twelve and twenty-four months;
• a projected income statement after twelve and twenty-four months, prepared in accordance with the schedule referred to in article 3:3;
• a budget of expected income and expenditure for a period of at least two years after incorporation;
• a description of the assumptions used in estimating expected turnover and expected profitability;
• where appropriate, the name of the external expert who assisted in preparing the financial plan.”

Why have a financial plan or cash flow plan made?

A financial and cash flow plan gives you insight into your chances of success in raising funding, but also into your overall funding needs. Thanks to a well-founded plan, you can properly assess how much money you need for your growth plans in the coming years and you don't have to look for extra funding early.

A cash flow plan also ensures that you can closely monitor your company. This way, you can intervene more quickly if things go wrong. In addition, you can easily calculate what turnover and costs you can expect in the future, but also which decisions have a positive or negative impact on the financial health of your company.

When you seek loans or investments, every bank, investor, and grant provider will ask you for your plans. A cash flow plan is therefore an essential part of raising any form of financing. Together with the business plan, this is therefore the first exercise that your company should make in its search for financing.

How do we proceed?

The Harbour advisors sit down with you to map your company's activity. They will then work out a detailed financial plan for you, tailored to existing metrics, your business plan and your ambitions.

In a workshop, your financial model will be outlined and supported with logical assumptions. This model is then translated into a cash flow forecast for the next 60 months that maps out your income and expenses. This shows which KPIs you should focus on in the coming months, how much money you need to achieve them and what you will use the money for.

Once the initial design is ready, we'll ask for your approval and feedback. Then we will make a written note to explain your financial plan and the assumptions taken to potential financiers. This not only saves a lot of time, but also a higher chance of success among financiers.

What exactly do you get?

You will receive a substantiated financial plan in excel with an explanatory note. These documents include a 60-month cash flow forecast, an annual balance sheet and income statement, and a dashboard to monitor your key KPIs.

To further increase your chances of success, we can further provide you with matchmaking, pitch decks and a funding check where you will come into contact with a real investor within two weeks.