Location and Facilities optional 1. Company Overview There are many variations and approaches on how to lay out the various components of a business plan. The primer below is meant only to explain the broad differences between the most common company types. So for example, if you sell someone a cupcake and they sue you because they found a hair in it, and you lose in court, the creditors can legally go after your personal possessions — such as the roof over your head.
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. Financiers want and often require entrepreneurs to put their own funds in the venture, and the greater the portion you commit relative to your net worththe better.
You must also determine which type of financing would be most suitable for your business. Banks offer several types of loans to businesses that do not present too much risk. Do you need a short-term working capital loan to increase your inventory?
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?
Do you need an intermediate-term loan to purchase larger assets such as real estate or equipment?
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? Structuring Your Financial Plan Begin your financial plan with information on where your firm stands financially at the end of the most recent quarter what its financial situation has looked like historically.
Then lay out your goals with financial projections for the next three to five years, depending on what lenders or investors have asked for. These are called "pro forma" statements, and they are based on your assumptions about how your business will perform.
Your one-year projections should be broken down by month, while your more distant projections can be broken down by year. If your business is new, your statements will be speculative, but you can make them realistic by basing them on the published financial statements of existing businesses similar to yours.
Three Key Financial Statements Your financial plan should include three key financial statements: Lenders and investors want to know what kind of numbers your company is working with and whether your company is profitable or expects to be soon.
Within each category are numerous subcategories. For example, your assets will include cash, accounts receivable, inventory and equipment. Your liabilities will include accounts payable, wages and salaries, taxes, rent and utilities, and loan balances. How much will these expenses be, and how often will you need to pay them?
Will you have trade credit, and how long will you have to pay your suppliers? Your financial statements should show both a long- and short-term vision for your business. 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.
Your projections should be neither overly optimistic best-case scenarios, nor overly cautious worst-case scenarios, but realistic in-between projections that you can support.
Lenders may want your statements presented in a certain way, so ask before you draw them up.Template & Tools for Business Planning at caninariojana.com - This Australian Government site provides a really good business plan template for Word, including a detailed guide, questions to answer, and sample financial statements.
Feb 28, · If you need help writing a business plan (the financial information can be complicated), here’s a guide from SCORE, a nonprofit association that helps entrepreneurs and small business owners, to.
When writing your business plan, the Financial Data section outlines your current financial situation and future goals. This section includes: This section includes: Your balance sheet, which is a statement of the assets, liabilities, and capital of your business and shows the balance of income and expenditure over the preceding period.
Finally, if the business plan is only being presented to a single or a small number of investors, the amount of graphs and charts should reflect the wants, needs and sophistication of those few readers.
Create an investment-worthy business plan with our template builder. Download into Word or PDF for free. We ask the questions, you fill in the answers. Each section gives an example of what you should write. Our guide also includes example graphs and charts, so that you are aware of the types of financial calculations, plans, and .
Financial data is always at the back of the business plan, but that doesn’t mean it’s any less important than such up-front material as the description of the business concept and the.