If you are embarking upon a business plan, then you might be wondering what prospective financial statements for business plans are required. The complicated answer is: it depends. The financials you may include in your business plan will vary depending on what your business is and what you intend to do with the document. For instance, if you intend to see venture capital or angel investment, your business plan should typically include financials that speak to these types of investors, such as a proposition statement. If you are seeking a bank loan – and a Small Business Administration backed loan in particular – you will need very specific financial statements, including personal documents. However, while business plans can vary, most include the following basic projections:
• A profit and loss statement
• Revenue forecasts
• Break even analysis
• Balance sheet
In addition, many investors and lenders like to use a use of funds table, which describes how you intend to use your start-up capital, as well as best and worst case scenarios. Just as important as the charts you intend to include in your business plan are the types of projections you offer up. It is worth noting that most investors or lenders look favorably upon realistic projections. Anything too far out there, and investors or lenders will not stop reading your business plan, but they will not write any checks either. There is a happy medium, however, and if you need help finding it, why not call the business plan writing experts at MasterPlans. Reach us at 877-453-2011 for a free consultation today!
