What should be considered when creating a financial plan?

When creating a financial plan, it is crucial to consider startup and operating costs as they form the foundation of any financial strategy. A comprehensive understanding of these costs allows a contractor to budget effectively, ensuring that there are enough funds to cover initial expenses such as supplies, equipment, licensing, and permits, as well as ongoing operational costs like payroll, utilities, and maintenance. Without accurately accounting for these expenses, a business could face significant cash flow issues, inefficiencies, or even failure.

While marketing strategies and employee training programs are important components of overall business planning, they don't directly pertain to the financial framework in the same way that understanding financial obligations does. Marketing strategies contribute to business growth and visibility, and employee training enhances productivity and skill development, but planning for the immediate financial requirements is fundamental for stability and success. This is why focusing on startup and operating costs is essential at the outset of any financial planning process.