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Best CMS for intranet: UPDATED 2025 – A Complete Guide
Intranets within companies are not novel, and they have been in use for over a decade. However, if you're unfamiliar with the term, an intranet is essentially a company's private website restricted to its existing employees. They have existed since the widespread use of computer networking to facilitate the sharing of data and information between personnel. Intranet for startups: Do small companies need an intranet?
Besides serving as a means of internal communication, intranets have many other benefits to offer. In addition, they provide a wealth of resources for staff members to use, which boosts productivity and efficiency.
However, the opposite is true when employees have to use cumbersome intranets to handle their everyday responsibilities. This might be due to a lack of functionality or a crowded user interface.
A content management system (CMS) is a intranet solution for quickly and easily building websites. Aimed at providing users with accessible tools for creating, editing, organizing and publishing personal or organizational content to the web, this type of software can be used to produce blogs, intranets, brochure sites, corporate intranets and much more.
Content management systems rely heavily on database driven engines to collect and manage information, delivering an array of options that allow users to generate website content without extensive web development knowledge.
By using templates and easy-to-use graphical interfaces these systems represent the next step in intranet technology making webpage design no longer exclusive to web developers.
However, not all intranets are the same, and some may not have as many advantages as others, which are more streamlined. That's why this article delves further into intranets and reveals the essential features of the best CMS for intranet.
There are four main types of content management systems (CMS):
- Intranet
- Web publishing
- Enterprise
- Media
Intranets allow businesses and organizations to share information internally with their employees, customers and members.
What is an Intranet Content Management System?
A CMS for intranet or Content Management System (CMS) is software that helps organizations manage their digital content quickly and efficiently. Think of it as a digital toolbox that allows teams to create, edit, organize, and publish content in one place without using separate tools for each task.
For an intranet—a private network organisations use to communicate and share information internally—a CMS is the backbone of managing and displaying content. It dictates how you:
- Index: Organize content so it's easy to navigate.
- Search: Quickly find documents or information.
- Retrieve: Access the content you need when you need it.
- Format and Revise: Make updates or changes to content without hassle.
- Publish: Share new announcements, resources, or updates across the intranet.
Without a CMS, these tasks require multiple tools or programs, creating inefficiencies and confusion. For example, you might need one tool for document storage, another for creating content, and another for publishing updates. This piecemeal approach can be time-consuming and frustrating.
Using an intranet CMS like AgilityPortal's "AppManager," all these functions are centralized under one system. Employees can easily manage communications, updates, and workflows from a single interface, saving time and improving productivity.
How Does a CMS Improve Employee Intranet Performance?
Using a CMS like Unily CMS enhances intranet efficiency, making your intranet software more dynamic and user-friendly. Here's how:
- Seamless Communication: Tools like the CMS intranet app allow HR or leadership teams to share updates instantly. For example, an HR announcement about updated health benefits can be created, scheduled, and posted within minutes.
- Collaboration Across Teams: Employees can access shared resources or contribute to updates through a unified platform.
- AI Integration: An AI intranet ensures personalization by learning employee preferences, improving the visibility of relevant content like project updates or Yahoo Mail integrations.
- Customizable Workflows: A CMS email system allows targeted communication, ensuring messages reach specific teams or the entire organization.
The Value of a Unified CMS in Action
Imagine an HR team using Unily CMS to update employees on new health benefits:
- Draft: The announcement is quickly drafted and formatted using the CMS interface.
- Publish: It's set to appear prominently on the intranet home page and relevant department pages.
- Searchable Content: The CMS ensures employees can find the announcement in the intranet directory using keywords.
- Notify via Email: A CMS email notification is automatically sent to alert employees about the update.
Without a CMS, these steps could require separate tools, leading to delays and inconsistencies.
Best CMS for intranet and its importance
The purpose of your company's employee intranet is to facilitate internal communication, collaboration, and information management. Eventually, the amount of content needed to convey this information will grow to a point where it will be challenging to publish and maintain.
All of these tasks—from content creation and publication to access, modification, and archiving—can be simplified with the aid of an intranet content management system (CMS).
Because it facilitates rapid and widespread dissemination of information, a content management system intranet is crucial to a company's capacity to enhance productivity. Additionally, the potential for private information to be disclosed externally via email or other open channels is removed. Finally, an intranet offers a forum for employee participation through tools like internal social media networking, blogs, and message systems.
When it comes to selecting a CMS for a enterprise point of view there are two broad options: buy or build, which means open sources or SaaS.
Open source CMS:
- An open source content management system (CMS) is a solution that provides organizations with the ability to effectively manage digital information and documents through intranet applications.
- With an open-source CMS, businesses can customize and build intranet systems to suit their particular requirements, while still accessing the collective knowledge and resources of the community which provides support and advice as needed, generally open sources are free and sometimes require customization
Software as a Service (SaaS) CMS:
- This intranet facilitates secure communication among staff members and departments, allowing important documents or other material to be distributed quickly and efficiently. Additionally, these intranets can be customized according to their purpose, whether it is for team collaboration, engaging content management, or knowledge sharing. The resources on an intranet secured by SaaS CMS technology also enable businesses streamline processes like document approval and other common tasks.
- Finally, intranets also enable more effective tracking of transactions between staff members, ensuring that employees stay compliant with any applicable regulations or paperwork.
- This type is normally managed by the provider in terms of updates, security updates, customization to fit your use case which makes it a better option.
Top 5 Best CMS for intranet
AgilityPortal
AgilityPortal is unparalleled intranet software for teamwork and information sharing. AgilityPortal's employee experience platform aims to centralize several applications that facilitate collaboration, education, and information-sharing among workers.
AgilityPortal was developed via centralized online training to enhance your frontline staff, field workers, remote users, and external workers' knowledge, performance, productivity, and loyalty. Ensure all of your employees' mobile devices have easy access to the relevant information they need whenever they need it. A ecosystem for small business in the cloud that empowers companies to store, access, share, and manage documented information from all device.
Features:-CMS documents library
-Content feed
-Members chat
-Employee directory
-Knowledge library
-Project management, helpdesk, crm,
Best intranet CMS software for:
-All-in-one frontline communication, and remote working, and collaboration
Price:
-Plans start at $5/user/month. The most cost effective option in the list.
Bitrix24
Bitrix24 is an on-premise and cloud-hosted social knowledge platform management and collaboration solution. Bitrix24 unifies features such as instant chat, workgroups, and activity streams for improved teamwork. Bitrix allows you up to 12 users completely for free. It packed with many features and options.
Features:-CMS library
-Sales funnel
-Simple access assignment
-Tasks
-Task reporting
-Time management
Best for:
-Remote working, and collaboration. Business management, Customer relationship management
Price:
-Plans start at $39/user/month. Also free for 12 users
Simpplr
I've had a great experience using the Simpplr platform in my role as an internal communicator. Having worked in broadcasting, I can attest to the clumsiness and instability of both externally contracted and internally developed web publishing platforms. Simpplr is easy to use and understand since it is, as the name implies, "simple".
Features:-Simpplr AI
-Prescriptive Analytics.
-Adaptive Personalization.
-Auto-Governance Engine
-Smart Search.
-Integrations & APIs.
Best for:
-Remote working, and collaboration. Business management, Customer relationship management
Price:
-Plans start: contact Vendor
SharePoint
SharePoint, Microsoft's intranet product, is a wonderful option for groups who rely heavily on Office Suite applications.
SharePoint uses intranets to store content pages and team data. It's a comprehensive content management system that works well for big businesses but could be too much for a startup.
Features:-Compliance
-Customized Web Parts
-Library
-Durable Links
-Encrypted Connections
-Fast Site Collection Creation
-Identification of Sensitive Content
-Information Rights Managements
-Image/Video Preview
Best for:
-Remote working, and collaboration. Business management, Customer relationship management
Price:
-Plans start at $5/user/month and higher
eXo
With eXo, groups of people may get together to share a common experience. Better coordination and colleague interaction are only two of the many benefits of using eXo. The intranet software platform acts as a social networking platform, complete with wikis and project management tools. eXo also allows users to customize their experience, make their own places, and connect with other services.
Features:-Collaboration tools
-Content Management and Distribution
-Dashboards
-Calendars
-Task Management and Scheduling
-Built to Localize
-Mobile
-Integration and Extensibility
-Enterprise Portal
Best for:
-Remote working, and collaboration. Business management, Customer relationship management
Price:
-Plans start at $6/user/month and higher, and its open source
Important components of an intranet CMS
Easy to customize
What one organization may require from its intranet, another may find unnecessary. You don't have to start from scratch when creating a content management system, but having complete command over all of its settings and configurations is essential.
Guarantee that you can make changes to branding, modify templates, and set governance rules. You shouldn't have to change your demands to accommodate your CMS intranet.
Improve governance management with your intranet content management system
Having an intranet content management system in place is helpful, but it shouldn't be used as a substitute for intranet governance.
Material management systems have advanced to the point where they can automatically update content to the most recent versions, identify and flag duplication, and even automate basic procedures like file naming.
These details will significantly impact how your content structure appears one, two, or five years from now.
Performance indicators and analytics
Your CMS intranet, like all the other technologies in your company, should always be evolving and improving. Using analytics, you can examine how your staff consumes material, which sorts perform best, which are most frequently shared, and much more.
Data collection, such as survey answers from staff, is simplified with integrated analytics.
Better visuals
We are immersed in visual culture. The days of publishing just text-based content are over. A study by Venngage found that adding images to material increased engagement by 80%.
Employees should be able to produce content for your intranet without needing to know how to code by embedding video, audio, polls, infographics, social media postings, and other content forms.
Better visuals effectively helps to communicate complex messages, reinforce key points, provide an effective way to analyze data.
For instance, if you are a professional photographer, you can leverage the power of photography studio management software to organize images by adding tags to them. It will make it easier for your clients to select the most suitable pictures for their articles, blog posts, and stories.
Advanced search options
A smart and advanced search option is needed to save time and get faster access to information.
Time is saved, frustration is reduced, productivity is increased, and the appropriate results are found quicker and easier with the best content management system.
It's important that your desired CMS allows you to search across your organization's indexes of files and apps, not just those used by the company itself.
Regular updates
Even after your CMS internal website has been launched; you still have some finishing touches to put in place. Maintaining compatibility with emerging standards, new technologies, and the latest security risks requires continuous upgrades to your CMS.
Ensure that updates are consistently distributed in a method that doesn't force you to take your complete system down for extended periods of time.
Mobile-friendly design
Many workers nowadays utilize personal devices like smartphones and tablets for work-related tasks. To accommodate what is likely to be a growing demand, it is essential that your CMS be accessible from devices other than desktop computers.
Similarly, check that your intranet CMS supports responsive design for mobile devices before publishing any new material.
Easy to navigate interface
Because of differences in technical expertise inside a company, any widely deployed tools must be simple enough that anyone can pick them up and start using them immediately.
Adoption and productivity may be increased by creating a user interface that is similar to other tools and platforms that employees are already familiar with, such as social media.
While this may seem inconsequential, it contributes significantly to improving the digital employee experience, which improves employee satisfaction, staff engagement, business outcomes, and even customer service.
Easy integration
The most important feature of a content management system for an intranet is its ability to work in tandem with your existing intranet and the other digital resources your staff uses regularly.
Verify that your content management system integrates smoothly with commonly used tools like project management, HR, and data analytics without requiring any extra manual processes.
Security
Obviously, the CMS must have a secure environment for all papers and other sensitive information stored inside it. Employees need to be able to log in securely from anywhere using their own credentials, and HTTPS access is the only way to guarantee this.
Two-factor authentication should also be used to further secure the intranet by asking employees to authenticate their identity with a one-time passcode delivered through SMS or email.
Intranet CMS and its use case
Intranet CMS for internal communication
An organization can only function as well as its internal communication. The only way to ensure that workers always have access to the information they need is to conduct their jobs properly. Open lines of communication between upper management and lower-level staff are another benefit of effective internal communication.
To what end does this information serve? When members of your team are free to share their thoughts and suggestions, they get invested in the project at hand and are more likely to bring their A-game each day.
With an intranet, it's simple to set up a discussion like this. It provides a medium for employees to quickly and easily communicate ideas and interact from different locations, making it possible to forgo the need for lengthy meetings.
Intranet CMS for knowledge sharing
Every week, workers lose a whole workday chasing down necessary information. But if you have an internal knowledge-sharing system, you may save anywhere from $2 million to $200 million.
Lost productivity due to knowledge gaps reduces the overall efficiency, and the fundamental cause of knowledge gaps is that people hoard knowledge.
Intranet content management systems serve as a central archive for records of procedures, news about developments in the field, and new ideas. It's not a huge deal for managers to bring on new staff members because the information they need to hit the ground running has already been compiled.
AgilityPortal, like many other modern intranet CMS solutions, also includes tools for staff to provide feedback on current process documentation or ask questions about a job they are unsure of. Your organization's experts will be notified to give input.
Management and executive portal
Create a management and executive Intranet CMS in addition to using one for regular staff members. Managers and executives require a bird's-eye perspective of all the work being done in the company at any one time. Multiple procedures, such as approvals on a customized feed, may be combined and consolidated in modern intranet software, saving managers time by keeping everything in one location. In addition, management portals consolidate data retrieval from several sources into a single interface.
Intranet CMS for employee onboarding
New hires are "onboarded" through a process in which they learn the norms and practices of the company and develop the expertise they'll need to contribute effectively.
Videos and written guides to new hire orientation are just two examples of the kind of engaging information that should be available on a suitable platform for onboarding new employees. It will also serve as a roadmap for the new hire to follow to attain predetermined goals, such as a specific number of months or years of employment.
Intranet CMS for employee portal
The development of an employee portal is one of the most common applications of a content management system for intranets. Sometimes referred to as an "enterprise portal," an employee portal is a private website that facilitates internal communication and collaboration. Staff members can maintain relationships with one another and receive up-to-the-minute information thanks to this.
Employee portals allow workers to view their own individual data, such as income and perks. They can see when employees work, what they're paid, and any other relevant details.
Intranet CMS can enhance your digital workplace experience
While intranets were originally designed to boost productivity in a brick-and-mortar office setting, COVID-19 demonstrated the flexibility of today's modern workplace. Now more than ever, the office is an idea rather than a physical space.
However, a centralized hub is still required so that employees have access to firm information and can better communicate with one another. Without a centralized location where employees can quickly obtain the information they need, productivity drops, and the business suffers. To add insult to injury, a lack of an intranet might cause workers to resort to utilizing their own tools, leading to data silos and incompatible systems.
These are some of the features you need to look for in a modern intranet in 2022. For example:
- Easy to use interface
- The design of an intranet shouldn't stand out from the design of other apps and software.
- Compatibility with external programs
- Intranets nowadays must be compatible with a wide range of business and consumer software.
- Available as a downloadable mobile app
- To effectively communicate with today's workforce, intranets must be made available as native applications.
- Work with cloud office solutions.
- An intranet should be compatible with any office software your business employs, be it Microsoft 365 or Google G-Suite.
- Personalization-ready.
- Messages on today's intranets must be specific enough to be tailored to certain departments and users.
How can your business benefit from using an intranet CMS?
Faster access to information
Getting an email might take you away from what you're doing. The typical workday includes 37 email checks. It takes an average of 23 minutes and 15 seconds to regain one's concentration after being interrupted.
Distractions in the workplace can be reduced if the information is shared in the same places where people currently spend their time working. There will be more time for productive work and less for non-income-producing activities.
Improves employee engagement
Sixty-three percent of businesses report that retaining current workers is more challenging than recruiting new ones. An unsatisfactory working environment and a lack of intrinsic motivation to do one's best work are two of the most common causes of employee turnover.
When compared, businesses with highly engaged workers see a 21% increase in their bottom line. Maintaining employee interest leads to increased output and contentment.
Increases employee performance
Your intranet content management system should serve as an integrated part of your existing business processes. Employee participation, resource discovery, communication, feedback, and teamwork are all bolstered by a well-designed intranet.
Look for a CMS for your intranet that puts security first, has AI-powered search, can be readily updated, is simple to trust, and is easy to use. Before committing to a subscription plan, be sure it can expand with your company by requesting a demo or starting a free team.
Wrapping up
If your company has a digital workplace, an intranet CMS effectively manages the many vital information exchanges among employees. The intranet CMS is a great tool for increasing efficiency in the workplace since it simplifies knowledge management and naturally promotes employee participation. We have highlighted the features that should be in the best CMS for intranet. You can use this as a guide to get the right intranet CMS for your business.
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Setting up a new business is no walk in the park, and when it comes to financial support small business owners often struggle to find the help they truly need.
A good question is whether you are confident your small business can survive its first five years—or even the first year. According to the U.S. Bureau of Labor Statistics, 1 in 5 small businesses fail within the first year, often due to poor financial planning and lack of strategic support.
Starting a business in 2025 means navigating a rapidly evolving economy, rising costs, and tighter competition. While passion and innovation are essential, your financial plan will ultimately determine your success.
Even the most exciting ideas can fall apart without a clear strategy for managing cash flow, expenses, and funding.
This article will guide you through building a brilliant financial plan tailored for small business success in 2025.
Whether launching a new venture or refining your current operations, you'll learn how to align your budget with your goals, forecast more accurately, and gain the financial stability needed to grow.
With the right plan, you'll gain investor confidence, make smarter decisions, and future-proof your business for the challenges ahead.
What is a Financial Plan for a Business?
What is a financial plan for a business? It's a strategic tool that helps determine whether a business idea is financially viable and provides a roadmap to maintain long-term financial health.
A financial plan is a crucial part of any business plan, offering clarity and direction as the business evolves. It typically includes three core financial statements: the income statement, the balance sheet, and the cash flow statement.
Each of these sections comes with a brief explanation or analysis to help interpret the numbers.
Together, they provide insight into profitability, liquidity, and overall financial stability—key metrics every business needs to track.
Who Needs a Financial Plan?
Financial planning isn't just for the wealthy—it's a valuable tool for anyone looking to take control of their financial future.
Regardless of your income or life stage, having a structured financial plan helps you set clear objectives, stay focused, and feel confident about your path.
A personalized financial plan offers more than just guidance—it acts as a roadmap to help you navigate major life events and unexpected changes.
Whether saving for a home, preparing for retirement, or adjusting to new financial responsibilities, a solid plan ensures you're making informed decisions.
You'll find financial planning especially beneficial if you're:
- Buying your first home or upgrading your current one
- Experiencing a significant change in income or expenses
- Starting or growing a family
- Thinking ahead to retirement and long-term savings
- Organizing your assets through estate or legacy planning
A proactive approach to your finances helps you reach your goals and builds resilience, allowing you to adapt to life's curveballs with greater ease and security.
Understanding the Role of a Financial Plan in Business Success
If you're starting a new business and wondering what a financial plan is, it's more than just budgeting—it's a strategic roadmap that outlines how your business will manage income, control costs, and reach long-term financial goals.
A financial plan brings clarity and control to your operations by linking daily decisions to your company's vision.
The importance of financial planning for small businesses cannot be overstated. According to the U.S. Bureau of Labor Statistics, around 20% of small businesses fail within the first year, often due to poor financial management.
A solid financial plan can help avoid this fate by providing insight into cash flow, funding needs, and operational priorities.
So, what is a financial plan example?
It could include projected income statements, balance sheets, cash flow forecasts, expense breakdowns, and growth targets. These documents serve internal strategy and inspire confidence among lenders, investors, and stakeholders.
A good financial plan helps businesses:
- Manage cash flow more efficiently to avoid shortfalls
- Set realistic goals and map out scalable growth strategies
- Present a strong, credible financial position to stakeholders
Ultimately, a financial plan enables small businesses to stay agile, make informed decisions, and achieve lasting success—even in uncertain economic environments.
Why Is a Financial Plan Important to Your Small Business?
A solid financial plan not only boosts your confidence in managing your business but also gives you clearer insights into how to allocate resources effectively.
It reflects a commitment to responsible spending and demonstrates your company's ability to meet its financial responsibilities.
With a financial plan, you can assess how specific decisions may impact revenue and identify when it's appropriate to use reserve funds.
Also, a financial plan is a powerful asset when presenting your business to potential investors. It highlights how your organization manages expenses, generates income, and plans for growth.
Most importantly, it provides a clear picture of your current financial position and outlines what's needed—through sales or investment—to achieve key financial goals.
Financial Plan for Beginners?
1. Develop a Sales Forecast
A critical component of any business financial plan is the sales forecast—an estimate of the revenue your business expects to generate over the next three years.
Start by building a spreadsheet that outlines each quarter of your fiscal year. Include key columns for product or service names, unit prices, units expected to be sold, and projected revenue.
If your business is already up and running, review past sales reports to identify seasonal trends or growth patterns you can use to inform future projections.
For startups without existing sales data, begin by calculating your cost of production per item or service. From there, estimate how much you plan to sell based on market research, competitor benchmarks, or industry demand.
Not confident in your manual forecasting skills? There are plenty of tools and software solutions available that can help you automate and refine your sales projections with greater accuracy.
A sales forecast estimates your future revenue and is crucial for building a solid financial plan.
Here's how to create one:
- Set up a spreadsheet to track products, prices, and projected sales.
- Use past sales data to identify trends (if your business is already operating).
- Estimate unit sales and pricing based on market research for new businesses.
- Forecast monthly revenue for the first year, then annually for Years 2 and 3.
- Use tools like QuickBooks or LivePlan to improve accuracy.
- Compare your forecast to industry benchmarks to ensure it's realistic.
This helps demonstrate your business's potential profitability to investors and lenders.
A well-prepared sales forecast isn't just for internal planning—it also builds confidence with potential investors or lenders.
It demonstrates that your business has a clear growth trajectory and can generate consistent revenue, making it more attractive for financial backing.
2. Outline Your Business Expenses
After completing your sales forecast, the next step is to create a detailed breakdown of your business expenses.
This section shows investors that your business can realistically afford to produce its products or services and maintain profitability. Ideally, your total expenses should remain below your projected revenue.
Start by identifying all your business costs and categorizing them into fixed and variable expenses:
- Fixed costs remain consistent throughout the year—examples include rent, insurance, and salaries.
- Variable costs fluctuate depending on operations and sales volume, such as marketing, shipping, or raw materials.
While some costs like production or rent may be straightforward, others—like taxes or maintenance—may require estimation.
Your expense forecast helps assess financial feasibility and ensures you're planning for both predictable and unexpected costs.
3. Build a Cash Flow Statement
A cash flow statement outlines the movement of money into and out of your business over a specific period.
It's a key component of your financial plan, as it shows whether your company generates enough income to cover its operating expenses and obligations.
The goal is to maintain positive cash flow, which means more money is coming into the business than going out. This signals healthy financial management and ensures you can pay bills, invest in growth, and handle unexpected costs.
To create a cash flow statement:
- Use historical profit and loss records to calculate incoming revenue and outgoing expenses.
- If you're a startup, make realistic projections using your estimated sales and known expenses.
- Always account for potential payment delays from clients or vendors. Adding a buffer for late invoices helps you avoid cash shortfalls.
Being conservative and realistic in your estimates helps you prepare for real-world financial conditions.
A clear cash flow projection gives investors confidence in your business's financial stability and helps you stay in control of your financial health.
4. Create an Income Projection Forecast
An income projection, a profit and loss forecast, provides a forward-looking snapshot of your business's expected revenue, costs, and net profit over a specific period. It's a crucial part of your financial plan, especially when presenting to investors or lenders who want to understand your business's long-term viability and profitability.
This document includes your projected sales, the direct costs of producing those goods or services, and your estimated operating expenses. The result is a forecast of your expected net income—essentially showing whether your business will be profitable.
If your business is already up and running, focus your forecast on the upcoming year.
For new ventures, consider projecting income over two to three years to demonstrate sustainability and growth potential.
To build an accurate forecast:
- Use sales forecasts and expense estimates as the foundation.
- Base your projections on industry trends and historical data, if available.
- Factor in seasonal variations, economic conditions, and potential business developments.
- Consider using financial forecasting software or consulting a financial advisor for added accuracy.
A well-prepared income forecast builds credibility and can significantly improve your chances of securing funding or investor interest.
Download the free financial projections template excel for a great starting poin.t
5. Build a Forecasted Balance Sheet
A forecasted balance sheet offers a snapshot of your company's projected financial position by outlining what it owns (assets) and what it owes (liabilities).
This document is essential for investors, lenders, and stakeholders to evaluate your business's financial stability and net worth over time.
Assets represent everything your business owns that has value, such as cash, inventory, accounts receivable, equipment, real estate, and intellectual property. Liabilities include financial obligations like loans, taxes, unpaid wages, or outstanding vendor payments.
To create your forecasted balance sheet:
- Start by listing all expected assets, including cash balances, office equipment, inventory, property, and receivables.
- Next, outline projected liabilities, such as credit lines, loan repayments, outstanding invoices, or payroll obligations.
- Subtract total liabilities from total assets to calculate your projected equity or net worth.
A positive balance sheet—where assets outweigh liabilities—demonstrates financial health and signals to investors that your business is solvent and capable of meeting its obligations.
Conversely, if liabilities exceed assets, it may raise red flags about your ability to manage debt.
Having a clear and realistic balance sheet projection not only builds credibility but also helps you plan for future capital needs and operational investments effectively.
Here is a simple balance sheet template excel, feel free to use this financial projections template excel.
6. Identify Your Break-Even Point
Understanding your break-even point is crucial for evaluating the financial viability of your business. It represents the level of sales needed to cover all your expenses—where your total revenue equals total costs. Only after crossing this threshold will your business begin generating profit.
Determining your break-even point gives you a clear financial target and helps you make informed pricing, budgeting, and investment decisions. It also reassures potential investors that your business can become self-sustaining within a reasonable timeframe.
To calculate your break-even point, subtract your variable costs from the unit selling price, then divide your total fixed costs by that result. The formula looks like this:
Break-Even Point = Fixed Costs / (Unit Price – Variable Cost per Unit)
For example, if your fixed costs are $100,000, and each unit you sell brings in $50 in profit after covering variable costs, you'd need to sell 2,000 units to break even.
Most successful businesses break even within two to three years. If your projections show it may take significantly longer—say five years or more—it could signal the need to reassess your business plan or reduce operating costs.
Also consider including an exit strategy in your financial plan. This helps mitigate risks and outlines a path to minimize losses should your business not perform as expected.
7. Plan for Contingencies + (contingency plan template word)
Every business faces unexpected challenges—from sudden market downturns and supply chain disruptions to equipment failure or economic shifts.
That's why it's essential to build contingency planning into your financial strategy.
A contingency plan includes setting aside a financial buffer (often referred to as an emergency fund) to cover unforeseen expenses without derailing your operations. Many financial experts recommend having three to six months of operating costs set aside as a safeguard.
Beyond savings, consider preparing alternative revenue streams or flexible cost-reduction strategies you can implement quickly if revenue drops. This might include renegotiating vendor contracts, scaling back non-essential spending, or leveraging credit lines responsibly.
A solid contingency plan increases investor confidence and gives your team peace of mind—knowing you're prepared for the unexpected.
It's not just about weathering storms, but staying agile and resilient enough to pivot when necessary, keeping your business on track for long-term success. Download out free contingency plan template word.
5 Steps of Financial Planning
1. Define Your Financial Goals
Start by asking yourself: Where do I want to be in 5, 10, or even 20 years? Whether owning a home, retiring early, travelling the world, or funding your child's education, having a clear vision helps shape your financial plan.
Break down your aspirations using the S.M.A.R.T. method:
- Specific: Clearly state what you want (e.g., "Save for a down payment on a house").
- Measurable: Assign a number or milestone (e.g., "Save $30,000 in 3 years").
- Attainable: Make sure the goal is realistic based on your income and expenses.
- Relevant: Focus on what matters most to you and your long-term lifestyle.
- Time-Based: Set a target date for each goal to stay accountable.
Use a digital notebook or spreadsheet to list and categorize your goals into short-term (1–2 years), mid-term (3–5 years), and long-term (5+ years). This will help you prioritize where to start saving and how much to allocate monthly toward each goal.
A great way to boost your financial literacy is through online MBA finance programs. These programs offer practical, flexible education tailored to real-world business needs. Whether you're planning for growth or just managing your first year of revenue, sharpening your financial skills gives you a competitive edge and a better shot at long-term stability.
2. Assess Your Risk Tolerance
Understanding your risk tolerance is essential when creating a financial plan that suits your lifestyle and goals.
Risk tolerance is your comfort level with investment ups and downs—how much loss you're willing to accept in pursuit of higher returns.
Your tolerance depends on factors such as:
- Your age – Younger individuals can typically handle more risk since they have time to recover from market fluctuations.
- Your financial goals – Short-term goals often require safer investments, while long-term goals may benefit from more growth-focused strategies.
- Your income and savings – The more financial stability you have, the more flexibility you may feel when taking risks.
- Current economic conditions—Inflation, interest rates, and political stability can all affect how much risk you're comfortable with.
Use an online risk tolerance quiz or calculator to get a quantified score. This helps align your investments with your comfort level and expected returns.
Consider this score when choosing between conservative options like bonds, balanced mutual funds, or higher-risk investments like stocks or crypto.
Understanding your risk tolerance ensures your financial strategy is realistic, sustainable, and aligned with your peace of mind—even when markets fluctuate.
3. Analyze Your Cash Flow
A solid financial plan starts with knowing exactly where your money is going.
Cash flow analysis tracks the money coming into your accounts (income) and what's going out (expenses). This step helps you identify spending patterns and areas for improvement.
Start by reviewing your last 3–6 months of bank statements.
Categorize your spending into:
- Essential expenses - Rent or mortgage, utilities, groceries, insurance, transportation.
- Discretionary expenses - Dining out, subscriptions, shopping, entertainment.
Once categorized, subtract your total expenses from your income to see your net cash flow.
Use budgeting apps like YNAB, Mint, or Excel templates to automate your tracking. Set a monthly review reminder to stay accountable.
After this analysis, you may find non-essential costs that can be reduced or eliminated. Even small changes—like cutting unused subscriptions or reducing takeaway meals—can free up cash for savings, investments, or emergency funds.
Understanding your cash flow gives you control over your finances, prevents overspending, and ensures your financial plan is based on accurate, real-world data.
4. Protect Your Assets
Protecting what you own is a critical part of any strong financial plan.
Start by calculating your net worth—the total value of your assets (home, car, savings, investments) minus your liabilities (loans, credit card debt). This gives you a clear picture of what needs protection.
Once you understand your financial standing, evaluate your insurance coverage:
- Homeowners or renters insurance for property and personal belongings.
- Auto insurance with sufficient liability coverage.
- A Personal Liability Umbrella Policy (PLUP) for extra protection in case of major claims or lawsuits.
- Life insurance—either term (for affordable temporary coverage) or permanent (whole, universal, or variable universal life), depending on your long-term needs and family situation.
- Long-term care insurance to protect your retirement savings from healthcare-related expenses later in life.
Review your insurance policies annually or when your life circumstances change (e.g., marriage, new home, children).
Speak with an independent insurance advisor to ensure you're neither underinsured nor overpaying.
With the proper protection in place, you're shielding your financial future from unexpected events—and giving yourself peace of mind.
5. Evaluate Your Investment Strategy
Your investment strategy should align with your financial goals, timeline, and risk tolerance.
Begin by identifying your approach:
- Active Investing involves hands-on management, frequent trading, and efforts to outperform the market. This strategy demands time, expertise, and often higher fees.
- Passive Investing focuses on long-term growth by tracking market indexes (like the S&P 500), often through ETFs or index funds. It typically involves lower costs and less frequent trading.
- Define your investment goals - Are you saving for retirement, a home, or college tuition?
- Consider your time horizon - The longer your timeline, the more risk you may be able to take.
- Evaluate your current portfolio - Is it diversified? Are your investments aligned with your goals?
- Rebalance your portfolio regularly to maintain your desired asset allocation.
If you're unsure which path suits you best, consult with a financial advisor or consider a hybrid approach, where part of your portfolio is passively managed and another part actively managed.
Choosing the right strategy is not just about returns—it's about aligning your investments with your life goals and peace of mind.
Key Challenges Small Businesses Face When it Comes to Financial Planning
- Unpredictable Cash Flow - Many small businesses experience irregular income streams, especially in the early stages. This makes it difficult to forecast revenue and plan for future expenses. Late payments from clients or seasonal fluctuations can leave businesses scrambling to cover costs.
- Limited Resources and Budget - Small businesses often lack dedicated financial experts or advanced tools. With limited time, staff, and money, financial planning is either put on hold or handled by someone without formal training in accounting or finance.
- Lack of Financial Literacy - Many small business owners are passionate about their product or service but may not fully understand financial statements, forecasting, or budgeting. This can lead to poor decision-making and prevent the business from growing sustainably.
- Difficulty Accessing Capital - Securing loans or investment requires detailed financial plans and projections. Small businesses that struggle to create professional financial documents may find it hard to gain the trust of investors or lenders.
- Overestimating Revenue, Underestimating Expenses - A common trap is being overly optimistic. Overestimating how much revenue will come in and underestimating how much things cost can result in shortfalls and missed targets.
- Economic and Market Volatility - Changes in interest rates, inflation, or supply chain disruptions can derail financial forecasts. Small businesses are more vulnerable to external shocks, making contingency planning even more important.
- Scaling Without a Plan - Rapid growth without financial controls can be just as dangerous as stagnation. Businesses that grow quickly may overextend themselves, take on too much debt, or fail to manage increased operational costs.
Best Tools and Resources for Small Business Financial Planning
Here's a list of some of the best tools and resources for small business financial planning, including top-rated financial planning apps that help manage budgets, cash flow, forecasting, and more:
#1. QuickBooks
Best for: Accounting & financial reporting
A go-to tool for small businesses, QuickBooks helps with expense tracking, payroll, invoicing, and generating financial statements. It also offers forecasting tools and integrates with many other apps.
Why it's great: Easy to use, scalable, and trusted by millions of businesses.
#2. Xero
Best for: Online accounting & collaboration
Xero is a cloud-based accounting software ideal for small businesses that want real-time collaboration with bookkeepers and accountants.
Why it's great: User-friendly interface, strong financial reporting features, and great for managing cash flow.
#3. Wave
Best for: Free accounting and invoicing
Wave offers free invoicing, accounting, and receipt scanning tools. It's perfect for solopreneurs and freelancers just starting out with financial planning.
Why it's great: No monthly fee, intuitive layout, and ideal for basic financial needs.
#4. LivePlan
Best for: Creating business plans & financial forecasting
LivePlan helps businesses build professional business plans and financial projections. It's a great tool if you're pitching to investors or lenders.
Why it's great: Pre-built templates, industry benchmarks, and easy forecasting features.
#5. PlanGuru
Best for: Advanced forecasting & budgeting
PlanGuru is designed for in-depth financial analytics and 3–10 year forecasts. It's more advanced than most small business tools and ideal for growing companies.
Why it's great: Budgeting, forecasting, and reporting all in one platform with powerful analytics.
Wrapping up
Financial planning isn't just for big corporations—it's the secret weapon that helps small businesses thrive.
When you take the time to understand your costs, stay informed, monitor your cash, and invest in solid systems, you set your business up for long-term success. The earlier you start building that financial foundation, the stronger your business becomes.
You don't need to be a financial wizard to make smart choices.
You just need the right mindset, some good habits, and a commitment to staying proactive. With these ten steps in place, you'll be ready to lead your business with clarity, confidence, and control.
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Jill Romford
I am a digital nomad, lover of exploring new places and making friends.
I love to travel and I love the internet. I take pictures of my travels and share them on the internet using Instagram.
Traveler, entrepreneur, and community builder. I share my insights on digital marketing and social media while inspiring you to live your fullest life.
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