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Finalize Your Business Plan
With A SOLID Report Of The
Financials

 


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Business Plan Guidelines

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FINANCIAL STATEMENTS

This final full section for writing a business plan contains your Financial Statements, followed only by any appendices and attachments.

For many readers, the financial plan is the MOST IMPORTANT section because it identifies your financing needs and shows the profit potential of your business. 

In addition, a good financial plan will give the reader CONFIDENCE that you really understand your business.


A financial plan includes four financial statements:

  • Income Statement - which compares your revenues and expenses to see if you are making money;

  • Monthly Cash Flow Statement - for the First Fiscal Year, which compares how much cash will be coming in, versus how much you will be spending;

  • Annual Cash Flow Statement - for the First Three Fiscal Years; and

  • Balance Sheet - which compares what you own to what you owe.


Additionally, a financial plan also includes Notes to the Financial Statements (which list some of your assumptions), as well as a written description highlighting key parts of your financial plan, and a ratio analysis.

As always, check with your lending institution or backer to verify the level of detail needed in the financials.

A Personal Note:

Software packages like Business Plan Pro, which I highly recommend, will show you precisely how to construct the financial information in your plan.

This software will also give you many SAMPLES from which to model these financial statements, and all the other parts of the business plan.

I sincerely hope you have found our information on writing a business plan of value to you.

So now that you have read our business plan guidelines, please help us improve our content by giving us your feedback, positive or negative. It will help us provide "better information" for future visitors.


You have my best wishes in writing a POWERFUL business plan!

 

Best regards,

Skip
Uriel "Skip" Akers
IdeasForMarketing.com

 

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PALO ALTO SOFTWARE

Articles courtesy of Palo Alto Software, Inc.


You're in the "Writing a Business Plan" section of our Web site...

[Business Plan Guidelines]  [Business Plan Outline]  [Executive Summary]

[Company Summary]  [Product Summary]  [Market Analysis Summary]

[Marketing Strategy]  [Management Summary]  [Financial Statements]

[Business Plan Software]


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