Financial
projections
A business plan requires
accurate and detailed projections of the business's finances. The
financial needs and anticipated revenues should be based on realistic
assumptions and projections. Questions to answer:
Budget: expenses
- How much money is
needed to start the business?
- How much money is
needed to operate the business this year? Where will you spend
it?
- How much money is
needed to operate the business for the next three to five years?
Where will you spend it?
Budget: income
- How much revenue do
you expect this year?
- Where will the revenue
come from? How many sales?
- When do you expect
the revenue to come into the business? Will there be more revenue
in some months and less in others?
Cash flow statement
- Combine the expense
and income budgets and projections
Break-even analysis
- Based upon your cash
flow statement, at what point will the company's expenses match
the sales revenue?
If you are using the
business plan for financing include:
Summary of financial
needs
- How much money do
you need? Why? For how long?
- How will you spend
the money?
- When and how will
you pay the money back?
If your company has been
in business in the past include:
- Current balance sheet
- Current income (profit
and loss) statement
- Other information
and documents
Other Documents
Any information or documents
which further explain or exhibit decisions and obligations of your
business. This could include:
- Product plans
- Building blueprints
- Licenses, permits
or patents
- Copies of leases
- Credit reports
- Legal documents
- Contracts
- List of your attorney,
accountant and other business consultants
- Letters of reference
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