Business Plan Financial Statements

Business Plan Financial Statements-74
They want to understand the thought process behind your numbers and why you’ve made those assumptions.

Now, everyone knows you don’t have a crystal ball and can’t actually predict what will happen over the next five years, but there’s a point to putting the projections together.

Lenders and investors really want to see that you have thought things through and considered the possible outcomes as your business progresses.

For this section, it helps to be fluent with spreadsheets, as that’s the best and most accepted way to present this information.

This is one part of the business plan that you may want to get some outside assistance with, perhaps from your accountant or financial advisor, to help put the numbers together and present them properly.

If you’re just at the beginning stages of business, make sure to also include any startup costs you’ll have.

Some may be specific to your industry, such as particular types of equipment, tools or store fixtures.Others are fairly common across the board, like professional fees for lawyers or accountants, licensing and incorporation fees, security deposits and rent, and computers.As a rule, the financial part of your plan should follow generally accepted accounting principles (GAAP) as set by the Federal Accounting Standards Advisory Board, especially if you’re putting it together primarily to get a loan or a line of credit.For existing businesses, think of this as a financial checkup: a way to examine your previous sales figures and ensure your health going forward.If you’re applying for a loan or making a presentation to investors, this section is the companion piece to your Funding Request.Assets will include your cash on hand, accounts receivable, inventory, equipment, and property you own.Liabilities are things such as your accounts payable and long-term debt.If you’re a startup, you obviously won’t have any previous financial information for the company, so many lenders will want to see your financial information in lieu of, or in addition to, your business financials.Spell out how much money you’re investing in the business, along with specifics about the assets you plan to use.You’ll need income statements, balance sheets, cash flow statements, and tax returns.Income statements document how much money you’ve taken in for the business, where the money came from, what your expenses were, and your net income, or how much you wound up with after paying all the expenses.


Comments Business Plan Financial Statements

The Latest from ©