Wondering about business plans graphs and charts? Like which ones are most important, how you can create them without being a master at Excel, or whether you really need some of them? You're not alone – the business plan is a complicated document and it's hard to know what you should show! As a general rule of thumb, the charts that are commonly included in the financial model all serve a purpose. The break-even may confuse at first, but if you can make sense of it for an investor, they're likely to want to see that analysis. Also, graphs showing that you maintain a positive cash balance also matter a lot, so don't remove them thinking they're superfluous. What are some others?
• Charts showing demographic data – like size of your market – are important
• Pie graphs showing the allocation of your spending will be overkill if it's spelled out in start-up
• Any chart that portrays data older than 3 years is probably obsolete
• The graphs commonly included in a market analysis showing Census data are an SBA requirement
• For any others, look online for guidance or consult businessplan.com
The financial model should ultimately include a revenue forecast, personnel plan, profit and loss statement, break-even analysis, cash flow tables, balance sheet, and a sensitivity analysis. The first year should also be shown with a month-by-month breakdown so that investors or lenders can put a close eye to that all-critical post start-up phase. The other graphs and tables take a back seat to good research: what is your industry growth pattern, who are you competing against, what are the projections for businesses like yours, and why is your team the one to break through? These questions are just some of the important ones. Want to learn more, or get your entire plan written by professionals? Call MasterPlans at 877-453-2011.
