Here's some advice on how to include things like a sales forecast, expense budget, and cash-flow statement. Based in the Washington, D. Getty Images A business plan is all conceptual until you start filling in the numbers and terms. The sections about your marketing plan and strategy are interesting to read, but they don't mean a thing if you can't justify your business with good figures on the bottom line.
Now you can determine how much money you will need to get the business off the ground, and keep it going. Determining your financial needs involves these areas: Assumptions - what you base your sales forecasts on. Cash Flow Projection - a 12 month estimate of sales and cash into your business.
Each of these is covered in detail in this section.
The first part what you need is the Use of Funds, while the second part where it comes from is the Source of Funds. Your Use of Funds and Source of Funds will have matching totals. While it shows the complete picture, it is business plan financial projections ukc necessary to put every single item on the sheet - only major items should be listed individually.
If you have an itemized list, feel free to attach it to the plan as an Appendix. Capital Items - major pieces of equipment you need to start or to expand. Renovations Operating line - similar to a line of credit, these are funds you need to carry you through slow periods and provide a "buffer" for your operation.
Starting Cash Balance for Month 1 cannot be a negative number.
The numbers generated in this section will become part of your projected cash flow. You could not take less out of the business to live on, though you certainly could choose to take more example: If your projections are based on your many years experience in the field, say so.
In the case of an existing business, past sales figures may also be used, but if the forecast varies substantially, or if the business is new to you additional support is beneficial.
However, the more information you can provide to show how you came up with your sales forecast, the more accurate and meaningful they will be. The assumptions should consider any major areas that can affect your business.
For example, a retail store should consider the effects of Christmas on their November and December sales. Factors could include things like: Seasonal conditions - weather, Christmas, etc. Economic conditions - logging down-time, housing constructions, etc.
Customers - the number of customers you expect to be working with on a daily, weekly, or monthly basis. Marketing - the type of marketing or promotion you will be doing during this time, and the number of hours you plan to devote to it.
Also discuss what may cause fluctuations in the forecasts. Cash In -The sales forecasts you did are formulated to carry forward to your Cash In. It will estimate cash into your business.
It will demonstrate any credit terms you may provide -If you agree to payment in 30 days, a sale in January will show up as cash to you in February, under the line "Accounts Receivable". Cash Out -Several categories of expenses are listed and each has a comment box to guide you.
Items discussed in the business plan nearly always result in some sort of cash flow. Describe any changes in patterns your cash in and out flows demonstrate example:Financial forecasts for your business plan As part of your plan you will need to provide a set of financial projections which translate what you have said about your business into numbers.
You will need to look carefully at. It's at the end of your business plan, but the financial plan section is the section that determines whether or not your business idea is viable, and is a key component in determining whether or not your plan is going to be able to attract any investment in your business idea..
Basically, the financial plan section consists of three financial statements, the income statement, the cash flow.
Business financial projections are the estimates of financial statements that consist of the income statements, balance sheets, and cash flows, based on a set of assumptions about the future of the business. 4 | Business Planning and Financial Forecasting Elements of a Business Plan Purpose: The purpose of the executive summary is to get the readers attention by summarizing the key elements of the business plan.
Do homework for pay. If you are looking to apply for a bank/SBA loan, to obtain funding from private investors, to lease a space for your business or to avoid costly mistakes when starting or expanding your business, you would benefit immensely by obtaining a professional Business Plan Financial Plan.
First Steps: Writing the Financials Section of Your Business Plan you should include in the financials section of your business plan.
at the numbers before reading the plan. Financial.