Business Plan Financial Statements

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If you’re just at the beginning stages of business, make sure to also include any startup costs you’ll have.

Some may be specific to your industry, such as particular types of equipment, tools or store fixtures.

If you’re a startup, you obviously won’t have any previous financial information for the company, so many lenders will want to see your financial information in lieu of, or in addition to, your business financials.

Spell out how much money you’re investing in the business, along with specifics about the assets you plan to use.

For this section, it helps to be fluent with spreadsheets, as that’s the best and most accepted way to present this information.

This is one part of the business plan that you may want to get some outside assistance with, perhaps from your accountant or financial advisor, to help put the numbers together and present them properly.They want to understand the thought process behind your numbers and why you’ve made those assumptions.This means you need to do a significant amount of planning before sitting down to work on your projections, critically thinking through different scenarios.The balance sheet is a snapshot of your company’s financial position at the time it’s prepared, comparing what you own with what you owe.Cash flow statements show all the cash you have coming in and out of the company, whether as a direct result of your business activities or from any outside investments you’ve made.How your business is structured will determine which tax forms you have to file with the Internal Revenue Service each year, so these may be your personal tax returns with a Schedule C attachment, or separate corporate tax returns.If you’re looking for a loan, you’ll most likely also need to show the value of any collateral you’re offering to ensure payments, like real estate, vehicles, inventory, stocks and bonds, and equipment.It’s where you support the numbers you put together in your sales and marketing plan, and demonstrate why you’re a good investment.In this section, you’ll take all of the marketing, sales, and product information you’ve amassed, and show how they translate into dollars. There are two parts to the financial component of a business plan: historical data and prospective data.Now, everyone knows you don’t have a crystal ball and can’t actually predict what will happen over the next five years, but there’s a point to putting the projections together.Lenders and investors really want to see that you have thought things through and considered the possible outcomes as your business progresses.