Sample financial plan of business plan

Small business finance software can also help you conduct an effective business finance analysis and strengthen your operation. Unlike much of the rest of the Balance Sheet, you can manually enter different amounts for each year, as you may, for example, be expecting to take on another loan to purchase some new equipment in Year 3 as your business expands.

Business plan template

Related Content. Non-recurring Expenses This section is for entering any expenses that you will not be paying on an annual basis. Adding this amount to your total startup expenses list, and you have a ballpark figure for your complete start-up costs. Non-Operation Income You may have, or be expecting some income in addition to your operating income. Forecasted Revenue The forecasted revenue section allows you to estimate your revenue for 4 different products. Software programs also let you use some of your projections in the financial section to create pie charts or bar graphs that you can use elsewhere in your business plan to highlight your financials, your sales history, or your projected income over three years. Once you've completed the analysis of your data, complete your own business financial plan. Balance Sheet The annual balances for Years are, in most cases, filled in for you, based on the information you have entered on the Model Inputs sheet and in the Initial Balance column of the Balance Sheet column itself. Once you have listed all of your operating expenses, the total will reflect the monthly cost of operating your business. For example, what you see in the cash-flow plan might mean going back to change estimates for sales and expenses. Enter the value of these assets into Column B, and these values will be copied over to each of the 5 years of the plan. Investing Activities Your capital expenditures and sale of fixed assets will be automatically populated if you have filled out the relevant sections of the Balance Sheet.

And you most likely won't present it in the final document in the same sequence you compile the figures and documents. You're going to need it if you are seeking investment from venture capitalists, angel investors, or even smart family members.

3 year financial projection template

Start with a sales forecast. When building your cash flow projection, a common pitfall is being over-optimistic about your projected sales.

Example of a simple financial plan pdf

The following financial statements and analysis have been forecasted over a three year period. Still, he says that it's easier to explain in sequence, as long as you understand that you don't start at step one and go to step six without looking back--a lot--in between. You do this in a distinct section of your business plan for financial forecasts and statements. He says multiply estimated profits times your best-guess tax percentage rate to estimate taxes. Retained earnings are earnings kept by the company for expansion; that is, not paid out as dividends. The breakeven point, Pinson says, is when your business's expenses match your sales or service volume. There are pre-entered categories for rental, lost income and loss or gain on the sale of assets, as well as an additional row where you can enter your own non-operation income. It's an elaborate educated guess. For example, what you see in the cash-flow plan might mean going back to change estimates for sales and expenses. This is your pro forma profit and loss statement, detailing forecasts for your business for the coming three years. Some business planning software programs will have these formulas built in to help you make these projections. PART A.

The depreciation information entered into the Model Inputs sheet will be used to calculate the depreciation expenses, which allows a total for property and equipment to be calculated automatically.

If you are operating an existing business, you should have historical documents, such as profit and loss statements and balance sheets from years past to base these forecasts on.

It's an elaborate educated guess. Profit and loss This sheet calculates your profit and loss for each year over a 5 year period. You can rename this row by typing over the "Other Tax specify " text.

Example of a simple financial plan

He says multiply estimated profits times your best-guess tax percentage rate to estimate taxes. You do this in a distinct section of your business plan for financial forecasts and statements. Start with a sales forecast. All of the various calculations you need to assemble the financial section of a business plan are a good reason to look for business planning software, so you can have this on your computer and make sure you get this right. If you want to give your products names, simply type over the words "Product 1", "Product 2" etc. Now you can begin to put together your financial statements for your business plan starting with the income statement. Breakeven analysis. Many people get confused about this because the financial projections that you include--profit and loss, balance sheet, and cash flow--look similar to accounting statements your business generates.

Pinson also recommends that you undertake a financial statement analysis to develop a study of relationships and compare items in your financial statements, compare financial statements over time, and even compare your statements to those of other businesses. Berry recommends you go with simple math.

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Business Plan Essentials: The Financial Plan