A business plan is a written document that describes your business.
It covers objectives, strategies, sales, marketing and financial forecasts.
Either add to the capital invested or loaned or find a way to reduce your startup costs if you find cash balances dipping below a reasonable reserve level at any time.
Don’t you wish there was a faster, easier way to finish your business plan?
It can also help to convince customers, suppliers and potential employees to support you.
Business Plan Financial Plan Types Of Problem Solving In Mathematics
Generating the financial plan and accompanying pro forma financial statements for your business plan is a project in and of itself.
Start With a Financial Model Ideally, you should have a business plan template or financial worksheet which provides an Excel model to simplify the financial planning process.
The Excel model should include short-term (2 or 3 year) and longer-term (5 year) financial statements (balance sheet, income statement and cash flow statement) all built out of formulas that tie them together.
Check Cash Flow Finally, double check that the cash flow statement shows an ending cash balance that remains positive at all times.
If it goes negative, the company is under-funded and needs to raise additional capital in the start-up phase.