Will you have trade credit, and how long will you have to pay your suppliers? You have to convince them that your business is the most promising option. Structuring Your Financial Plan Begin your financial plan with information on where your firm stands financially at the end of the most recent quarter what its financial situation has looked like historically.
Remember, no one has to lend you any money or invest in your company. If your business is new, your statements will be speculative, but you can make them realistic by basing them on the published financial statements of existing businesses similar to yours.
Within each category are numerous subcategories. To finish writing your business financial plan, ensure that you add assumptions and summary or discussion notes to your plan. Sales Forecast The Sales Forecast is a chart that breaks down how much your business expects to sell in various categories by month for the next year and by year for the following two to four years.
Your income statement must reconcile to your cash flow statement, which reconciles to your balance sheet. Each number on your spreadsheets must mean something.
Your balance sheet must balance at the end of every period. Use a Financial Plan Sample In Your Business Finance Analysis Use a financial plan sample from a business within your industry to help you build a stronger financial plan.
Potential investors will want to know when their investment will pay off and how much of a return to expect. Whatever their form, financial statements must be complete, accurate and thorough. You must also determine which type of financing would be most suitable for your business.
Proposed Repayment Schedule or Exit Strategy Potential lenders will want to know how and when you intend to repay the loan or line of credit, so you should put together a proposed repayment schedule and terms.
In order for your projections to be accurate, you must know your business. Also describe what collateral is available to secure the loan, such as inventory, accounts receivable, real estate, vehicles or equipment.
Do you need an intermediate-term loan to purchase larger assets such as real estate or equipment? Lenders may want your statements presented in a certain way, so ask before you draw them up.
Three Key Financial Statements Your financial plan should include three key financial statements: When you put together your financial statements, make sure there are absolutely no typos or mistakes in your calculations.
When they are considering doing so, they will be comparing the risk and return of working with you to the risk and return they could get from lending to or investing in other companies.
Do you need a short-term working capital loan to increase your inventory? If you are inexperienced in preparing these statements, hire an accountant to help you. Hold an initial public offering and go public? They will also want to see that you have an exit strategy to cash out on your investment — and theirs.
Financiers want and often require entrepreneurs to put their own funds in the venture, and the greater the portion you commit relative to your net worththe better. A bank, for example, may want to see monthly projections for the first year, quarterly projections for the second year and annual projections for the third year.
Additional Financial Information In addition to financial statements, prospective lenders or investors will also want to see a Sales Forecast and, if your business will have employees, a Personnel Plan. Personnel Plan If your business will have employees and not just managers, you will need a Personnel Plan showing what types of employees you will have for example, cashiers, butchers, drivers, stockers and cooksalong with what they will cost in terms of salary and wages, health insuranceretirement-plan contributionsworkers compensation insuranceunemployment insuranceand Social Security and Medicare taxes.
In addition to financial statements for your company, if you are a new business, you may need to provide personal financial statements for each owner. For example, your assets will include cash, accounts receivable, inventory and equipment.
What will your exit strategy be if the business is failing? At what point have you determined that you will cut your losses and sell or close down, and how will you repay investors if this happens? Do you plan to sell the business outright to another individual or company?
Sample Summary on Projected Net Income: It is a one year contract, with an option to renew in year 2 at the same price, plus inflation. Do you want a transaction loan, with which you receive all the money at once, or a line of credit that lets you draw on funds as you need them?Creating a professional, investor ready business plan has never been easier.
Try our LivePlan Business Plan Software today. Pitch, plan, and track your business. Anywhere. LivePlan has taken a step by step approach to make the process of creating financial records and projections as simplistic as possible. Oct 23, · How to Write a Business Plan [Updated for ] by: in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation, and other data about your business.
They are the drivers of growth for your business model and your financial plan.
For example, a restaurant may pay special attention to /5(). The computer/software/data processing industry, and th e information services industries make up the two largest segments of the Project.
PC Repair computer repair business plan executive summary. PC Repair is a new computer consulting, repair, and maintenance business, offering on-site diagnosis and repair to small businesses and home PC users/5(76).
Expert opinions may vary, but in general there are some standard financial statements and analyses that a business plan should include. The Financials |. Use a Financial Plan Sample In Your Business Finance Analysis Use a financial plan sample from a business within your industry to help you build a stronger financial plan.Download