Description:
Because the financial plan shows investments, loans, accounts receivables and payables, it is one of the most important parts of a business plan. Without this section, the plan cannot prove the company would be a viable business.
What to Include:
When writing the financial plan, be sure to include the following:
- Break-even Analysis
- Profit and Loss Statements
- Cash Flow projects
- Balance Sheet
- Industry ratios
- Address all possible risks
Summary:
The financial plan should provide facts and figures showing how fast the business is expected to grow and how that growth will be funded. Reiterate any positive facts in the summary. Keep in mind that it is critical to support the financial plan part of the business plan with documented research. Be sure the numbers add up. If writing a business plan for financing, all assumptions and cash flow projections must make sense to the lender.
