Writing the Business Plan
At the end of your business plan, financial plan, but the section is the section that determines whether your business idea is viable, and is a key component to determine if your business plan will be able to attract any investment in your idea business.
Basically, the financial plan section of the business plan Consists of three financial statements, the income statement, the cash flow projection and the balance sheet and a brief explanation / analysis of These three statements. Basically, the financial section of the business plan consists of three budgets, the income statement, cash flow projection and balance sheet and a brief explanation / analysis of these three statements.
This article will lead you through the preparation of Each of These three financial statements on the Following pages. This article will guide you through the preparation of each of these three budgets the following pages. First, However, you need to gather together Some of the financial data you’ll need to prepare These financial statements for your business plan by Examining your expenses. But first you need to collect some of the financial data they need to prepare financial statements for your business plan by examining the costs.
Think of your business expenses as broken into two categories; your start-up expenses and your operating expenses. Think of your business expenses as broken into two categories, your start up expenses and operating expenses.
All the costs of getting your business up and running go into the start up expenses category. All costs to get your business up and running go to start-up category of expenditure. These expenses may include: These costs may include:
* Business registration fees for business registration fees
* Business Licensing and Permits Business Licensing & Permits
* Starting inventory of departure
* Rent deposits rent deposits
* Down payments on property payments on real estate
* Down payments on equipment advances on equipment
* Utility set-up fees of up utility taxes
This is just a sampling of start-up expenses; Probably your own list will expand as soon as you start writing Them Down. This is just one example of start up expenses, your list will probably expand as soon as you start writing.
Operating expenses are the costs of keeping your business running. Operating costs are the costs to maintain the business. Think of These as the things you’re going to Have to Pay Each month. Think of these as the things you’re going to pay each month. Your list of operating expenses may include: Your list of operating expenses can include:
* Salaries (yours and staff salaries) salaries (yours and staff salaries)
* Rent or mortage payments rent or mortgage payments
* Telecommunications Telecommunications
* Utlities utlities
* Raw materials raw materials
* Storage storage
* Distribution distribution
* Promotion promotion
* Loan payments loan payments
* Office supplies office supplies
* Maintenance maintenance
Once again, this is just a partial list to get you going. Again, this is just a partial list to get you going. Once You Have Complete list your operating expenses, the total will show you what it will cost you to keep your business running Each month. Once you have the complete list of operating expenses, the total will show you what it will cost to keep your business running every month.
Multiply this number by 6, and you have a six month estimate of your operating expenses. Multiply this number by 6, and you have a period of six months to estimate the operating expenses. Then add this to the total of your start-up expenses list, and you’ll Have a ballpark figure for your complete start-up costs. Then add this to the total of your start-up expenses list, and you have a ballpark figure for the complete startup costs.
Now let’s look at putting burdens financial statements for your business plan together, starting with the Income Statement. Now let’s look at putting some financial statements for your business plan together, starting with the income statement.