General

Example of the Financial Section of a Business Plan

FINANCIAL SECTION OF YOUR BUSINESS PLAN

The Financial Section, in many cases, is the most scrutinized section of your business plan. In short, it provides details on how potentially profitable the business will be, how much debt and equity capital is required for the business venture, and when debts are scheduled to be repaid to investors.  In addition, this section includes your financial statement forecasts, and the assumptions made when creating your financial projections.

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Examples of the Exceutive Summary of a Business Plan

The Executive Summary of Your Plan

Most experienced investors/lenders have hundreds of business plans come across their desk during any given year and it's virtually impossible for them to read each one in their entirety. As a result, business plan writers are required to develop an executive summary.

An executive summary is simply a quick overview of the entrepreneur's proposed business venture.

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Trademarks and Protecting Your Idea.

TRADEMARKS

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Example of the Financial Section of a Business Plan - Part 3

PART C  -   NOTES TO THE FINANCIAL STATEMENTS

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Protect Your Business Idea - Copyrights, Trademarks, Patents.

PROTECTING YOUR BUSINESS IDEA:

If you are planning to start a business that will profit from an idea you've thought up or believe you have thought up, whether it be of literary content, a symbol, and/or an idea for a new invention, you will want to take steps to prevent someone else from "stealing" it and making a profit from it.

Below discusses Copyrights, Patents and Trademarks as a means to protect your invention or business idea.


COPYRIGHT:

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How to Calculate Break Even Point - Break-even Analysis

4. FORECASTED BREAK-EVEN ANALYSIS

The next analysis to appear in your financial plan is the Forecasted Break-even Analysis. A Break Even Analysis, in its simplest form, is a tool used to determine the level of sales a business must earn in order to achieve neither a profit nor a loss. In other words, the point at which a company's Net Income is ZERO (revenues - expenses = 0).

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Strategy Statement for your Business Plan

THE STRATEGY STATEMENT:

The strategy statement will always appear near the beginning of the business plan. It usually follows your mission statement or short-term objectives, depending upon the format used. Below illustrates two formats you may use for the "Mission and Strategy Statement" section of your business plan.

FORMAT 1
The Mission Statement
The Strategy Statement

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Legal Business Forms and Structures - Corporations, Partnerships and Sole Proprietors.

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Legal Business Forms

There are three main legal forms of business structure. You are advised to consult a professional accountant and/or lawyer before selecting a legal business form that's right for you.

1.   Sole Proprietorship
2.   Partnership
3.   Corporation

Below summerizes several advantages and disadvantages of each legal business form.

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How to Calculate Ratios for a Financial Plan

6. RATIO ANALYSIS

The next analysis appearing in the financial plan should be your Forecasted Ratio Analysis. In a nutshell, Ratio Analysis is a general technique for analyzing the performance of an existing or potential business.

Ratios involve dividing numbers from the Balance Sheet and Income Statement to create percentages and decimals. When aspiring entrepreneurs and existing business owners apply for a loan, for example, bankers usually look at their forecasted ratios and compare them to ratios of other businesses operating within the same industry.

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Sensitivity Analysis explained using Examples

5. SENSITIVITY ANALYSIS

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