Financial Plan For A Business Plan

If you own an existing business, gather up your balance sheets for the last three years.Website links to automated templates for the balance sheet, income statement, and cash flow statement are available online.

(Businesses with very tight cash flow may want to make weekly projections.) Now, plug in the costs for the projects you identified in the previous step.

For this job, you can use simple spreadsheet software or tools available in your accounting software.

Also prepare a projected income (profit and loss) statement and a balance sheet projection.

It can be useful to include various scenarios—most likely, optimistic and pessimistic—for your projections to help you to anticipate the impacts of each one.

This is in addition to identifying business obligations for loan considerations.

Include your federal tax return for the previous year if you are applying for a loan.The goal is for you to be able to operate your business on a predefined budget, so there are no hidden or undefined costs that may threaten your business operations over a certain period of time.Estimate your start-up costs if you are starting a new business.It may be a good idea to seek advice from your accountant when developing your financial projections.Be sure to go over the plan together, as it is you, and not your accountant, who will be seeking financing and who will be explaining the plan to your banker and investor.If you are investing in equipment to run the business, the current market value will become a part of your assets listed on your balance sheet.If you own an existing business, start-up costs will not apply; go to the next step. If you are starting a new business, project your balances per month, forward to one year.Possibilities include maintaining a cash reserve or keeping lots of room on your line of credit.Your financial business plan is an essential component of your entire business plan.What would you do if your finances suddenly deteriorated?It’s a good idea to have emergency sources of money before you need them.

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