Your liabilities will include accounts payable, wages and salaries, taxes, rent and utilities, and loan balances. In order for your projections to be accurate, you must know your business.
If your business sells a product, your sales forecast should include the cost of goods sold. They will also want to see that you have an exit strategy to cash out on your investment — and theirs. Remember, no one has to lend you any money or invest in your company. Your one-year projections should be broken down by month, while your more distant projections can be broken down by year.
In business plans, three-year and five-year projections are considered long term, and your plan will be expected to cover at least three years. Banks offer several types of loans to businesses that do not present too much risk. 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.
For a cleaning service business, the sales forecast might list one-time cleanings, monthly cleaning contracts and annual cleaning contracts and further break those down by houses, condos, apartment units, entire apartment buildings and office buildings. Your financial statements should show both a long- and short-term vision for your business.
Whatever their form, financial statements must be complete, accurate and thorough. 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.
This information helps you determine how much financing your business needs and helps outsiders determine whether lending you money or investing in your business is a wise use of their funds. To learn more about what investors will be looking for, see Reading The Balance Sheet Use realistic projections.
For a grocery store, the sales forecast might list projected sales of fruits, vegetables, dairy, meat, seafood, packaged goods and hot prepared meals.
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.
What will your exit strategy be if the business is failing? Or are you a high-risk business that needs to jump through the extra hoops required to secure a government-backed Small Business Administration loan? When you put together your financial statements, make sure there are absolutely no typos or mistakes in your calculations.
Within each category are numerous subcategories.
Do you plan to sell the business outright to another individual or company? 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. Your balance sheet must balance at the end of every period.
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? Three Key Financial Statements Your financial plan should include three key financial statements: Do you need a short-term working capital loan to increase your inventory?
These are called "pro forma" statements, and they are based on your assumptions about how your business will perform. Potential investors will want to know when their investment will pay off and how much of a return to expect.
For example, your assets will include cash, accounts receivable, inventory and equipment. Lenders may want your statements presented in a certain way, so ask before you draw them up.Business planning or forecasting is a forward-looking view, starting today and going into the future.
"You don't do financials in a business plan the. Dec 13, · Write your business plan with the #1 online business planning tool.
Start Your Plan. How Long Should a Business Plan Be? Prev Article. Do You Need Funding? Next Article. The Financials. by: Tim Berry planning. Expert opinions may vary, but in general there are some standard analyses that a business plan ought to have, /5(16). The financial part of a business plan includes various financial statements that show where your company currently is financially, and where it intends to be.
This information helps you determine. View Homework Help - BUS Section 2 Business Plan Financials FINAL from BUS at Strayer University. Welcome! Thank you for trying out Business Plan Financials from Planning Shop. These92%(13). Pre-formatted, flow-through, Excel-based Business Plan Financials make the process of creating financial projections easier, faster, and perhaps even fun!
Welcome to the Mac Version of Business Plan Financials Thank you for purchasing Planning Shop's Business Plan Financials. These worksheets will help you develop clear, compelling financial projections for your business. If you are unfamiliar with the business planning process, we encourage you to refer to our book, The Successful Business 93%(30).Download