Last week, we talked about the non-financial aspects to include on your business plan. Today, we focus on all things financial.
Financial Statements
Any good business plan will include detailed financial statements to support what you want to achieve. These are vitally important if you want to approach anyone for financial backing in the future.
Make sure you include the following in your statements as a minimum:
Cash Flow Forecasts
What do you want to be earning for years 1, 2 and 3? Draw up a plan for each year and include in your business plan.
Balance Sheets
What equipment do you have? What stock do you have? What debtors (outstanding money owed to you)? These details make up your balance sheet.
Profit & Loss Forecasts
What do you think you will earn each year? What do you think you will spend each year? Subtract your projected outgoings from your income to get your projected profit figure.
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