Every business needs to have a plan, not only a general business plan but a financial and marketing plan as well. The financial plan is essential to understanding how the business is going to survive and hopefully expand. Without knowing the financial aspects of the business means not knowing how to explain how the business is going to be successful to a potential funder of the venture. The financial plan of course gives you more than just the basic knowledge of how the business will work but helps the owner understand what needs to be done on a month to month, semi-annual, or annual bases to keep the company operating or even looking at a future expansion. Being able to measure the ROI and for a more in-depth analysis ROE helps people understand how the company is doing. This helps determine if the company is meeting the financial objectives set for them. Calculating the NPV also gives another view on the company’s financial stance by comparing the inflow and outflow of funds.