If you're wondering about the financial aspects of your business plan, you should first consider the starting and ending goals. The two key questions that are your bookends are these: what amount of capital do I need for this business, and what is the ultimate profit I can reasonably predict within a 3-5 year window? While far from the sole considerations you'll need to make during the drafting of this document, these are some of the most critical, as they have an impact on every aspect of the plan you produce. From these core precepts, you should be able to arrive at some very important conclusions regarding the following:
• What is the intended use of capital?
• What is the repayment schedule, if any?
• What is the equity scenario for investors, if applicable?
• What are the competitive comparables or industry metrics that the projections are based off of?
• What is the anticipated Y3 or Y5 net profit percentage and how does that compare to other companies?
Your business plan financial model needs to include a start-up summary with a use of funds analysis or, if your company is already underway, a past performance table showing your successes and failures over the past 2-3 years. From there, the model should show a revenue forecast, break-even point, profit and loss, cash flow, balance sheet, sensitivity analysis, and personnel plan. The first year should be broken down by month to allow for a closer review. MasterPlans and its team of expert writers can produce this document for you: call us today at 877-453-2011.
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