Startup Junction

Financials is the crtical component of a business plan. It tells all the stake holders about exactly when you will be making money. The financials should be developed in end when you have a complete picture of your business. Your financials section should have the following:

Historical Financial Data

If you have a business which has been running for a while, then you should include historical financial data for last 3-5 years. This data should include income statements, balance sheets, and cash flow statements for each year you have been in business.

Financial Projections

Whether you are a new business or an existing business you should be able to forecast how much money you will be making. Your creditors and investors will decide whether to fund your business or not based on these forecasts. Your should included forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets for each year usually month by month for the first year and yearly for the remainder of the time period. You should include break even points based on the assumption that you will receive funding. Your financials should justify your funding requests. Also include bar charts and pie charts to demonstrate data graphically. For example, if you can demonstrate a revenue/profitability chart with an uptred the readers of your visual plans will be easier to engage.