Financial Part Of A Business Plan
attach other detailed statements there in the appendix.
If you are using your business plan to get a loan, it is highly recommended to include your business' financial history as part of the financial section.
Hence, it is important to look ahead to see how your balance sheet will appear given your marketing, sales and inventory forecast - the three components of the business that can have a major impact on your projections.
Example of a cash flow statement is as shown below This section provides details on the cash position of the business and its ability to meet monetary commitments on a timely basis.This is done by filling accurate numbers in the business plan and elaborating them in a way that genuinely makes your business sound like a profitable venture to investors.In fact, you’ll find many investors taking a quick peek at the numbers even before the executive summary.The financial section in a business plan is divided into three segments - income statement, cash flow projection and the balance sheet, along with a brief analysis of these three statements.These three important statements are the bird view of financial stats of your organization.The final numbers on this sheet reflect the business owners’ equity or value. Check = Total Liabilities & Equity - Assets The term "balance" we are using for this sheet because it is representing the balance between Assets and Total Liabilities & Equity.The purpose of the balance sheet: The investor wants to see your balance sheet to understand the condition of your business on a given date, which is usually the end of the fiscal year.The result is then adjusted to the cash flow balance that is carried over to the next month.Example of a balance sheet statement is as follow : A balance sheet is a snapshot of what you’re worth.In a nutshell, the Income Statement shows your expenses, revenues, and profits for a particular period.Basically, it is a snapshot of your business that shows the feasibility of the business idea.