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Do you have a sound financial plan for your small business? You should. The majority of small busi­nesses fail dming the first five years, typically because they have not made realistic financial plans. A new business owner may start out with the necessary funds, a qualified staff, and office space and equipment. These things may not save the business from disaster, however, if the business owner hasn't set realistic targets and made plans to reach them. Everyone who contemplates starting a new business should sit down and write out all the details of a financial plan before doing anything else.

To:        Shirley Haines

From:    Matthew Rockwell

Subject:  Financial planning

Attach:   Financial Plans for Small Businesses

Shirley,

Have you seen the attached article on financial plan­ning? It appeared in this weeks issue of Small Business Owner magazine. It has given me a new perspective on things. I can't believe we have already been running our business for six months, but we still haven't sat down together to write out a financial plan. Overall, I believe our business is doing well, and we certainly have enough clients. But, I now understand that our future success depends on having a good financial plan. We need to project our earnings for the next year and set financial targets. We should get to work on this right away. Can we meet tomorrow after­noon? Three o'clock is a good time for me. Let me know soon.

Mathew