- Writing a Business Plan
- Financial Statements
- Business Forecasting
- Business Checklist
FINANCIAL SECTION OF YOUR BUSINESS PLAN
The Financial Section, in many cases, is the most scrutinized section of your business plan. In short, it provides details on how potentially profitable the business will be, how much debt and equity capital is required for the business venture, and when debts are scheduled to be repaid to investors. In addition, this section includes your financial statement forecasts, and the assumptions made when creating your financial projections.
The Financial Section of your business plan relies on Forecasted Financial Statements. Forecasted financial statements help an entrepreneur determine the feasibility of his/her business venture. Also, forecasted financial statements help to estimate the amount of money an entrepreneur will need in order to successfully launch and operate the proposed endeavor. In addition, these statements help investors determine the plan's feasibility and its potential profitability. It is for these reasons that many refer the financial section as the "heart of a business plan". All other sections of the plan (operations section, management section, marketing section, etc) show an investor whether or not an entrepreneurs' financial projections can materialize as envisioned.
The structure of the financial section generally includes the following items:
Click on the above links for information on each item of the Financial Plan. Examples are also provided.
Below provides examples of Financial Plans. (Please note, the financial statements and analysis for two of the examples below; namely "The Internet Company" and "Scholarship Information Services" provide forecasted financial statements for a two year period. Your forecasted financial statements and analysis, however, should generally provide projections for at least a three year period.
EXAMPLES OF THE FINANCIAL PLAN SECTION OF A BUSINESS PLAN