Creating a financial plan for a small business is the process of forecasting and planning the income, expenses, and cash flow of your business. It involves analyzing your current financial situation, setting realistic financial goals, and then devising a strategy to accomplish those goals. The goal of creating a financial plan for a small business is to ensure that the company has sound financial management and sufficient capital to sustain operations in the long term. Having a financial plan in place can also help you make wise decisions about investments, debt financing, and other financial matters that may impact the future of your small business.