FINANCIAL PLANNING FRAMEWORK OF BUSINESS STARTUP AS ADVISORY AND SERVICE PROVIDER OF TIRE INDUSTRY MACHINE

Every company needs a plan, both in business strategies and financial strategies. Planning is very important in a company, its works to drive the business and measure its accomplishments. Empirical studies across different industrial countries have shown a positive correlation between planning intensity and the success of a business. Nevertheless, financial planning is typically regarded as a major obstacle in the process of new venture creation. Financial framework with five financial planning elements can be implements in a new venture or startup company. The framework will defines the process in to the five financial planning elements as planning of revenues, planning of related expenses, planning of investments, planning of capital requirements (all nonrecurring investments and recurring expenses), and planning of financing. Finally, the robustness of the financial plan can be tested by employing sensitivity analysis, scenario analysis, and simulation. Due to all cash flows have to be estimated in advance, appropriate forecasting methods must be employed.