The financial plan of the business plan: prerequisites for the preparation

The largest and most important stage in preparing for a business is the financial plan of a business plan. The information contained in this section is basic for providing it to business partners, investors. For them, this is the main

financial plan business plan
material for assessing the ability of a new enterprise through its activities to provide cash inflows in an amount sufficient to repay loan obligations and pay dividends. The financial plan of the business plan should be transparent, logical, understandable. For a worthy assessment, it is necessary to indicate in it who composed the cost plan - specialists of your future company or third-party appraisers. The more understandable and logical the financial section of a business plan, the easier it is to set qualitative goals and achieve quantitative indicators. Of course, such a presentation of a startup will be more interesting for investors and partners.

If in the future it is planned to create a resource-intensive manufacturing enterprise with a large turnover of cash, materials, raw materials, labor, and a large loan, then the financial part of the business plan, or rather its preparation, is more reasonable to entrust to expert companies. This increases the chance of having a competent document in which all calculations are economically justified. The financial plan of the business plan developed by experts is likely to be more favorably received by investors and lenders. This is an important moment for any startup.

The financial plan of the business plan must contain the reporting forms : financial and accounting. Of course, they should be

financial section of a business plan
approved by law. As a rule, there are three such reports:

  1. profit and loss statement;
  2. cash flow statement;
  3. balance sheet.

The first of these documents contains all the information about the company’s activities for reporting periods: decade, month, quarter, year. The second is called "Cash Flo". With its help, a sufficient amount of money supply is determined for making credit payments, issuing salaries, purchasing materials and raw materials. The third allows you to assess the financial condition of the company at any time. These are liabilities and assets, all property status, its sources of occurrence.

financial part of a business plan
It is equally important to describe the scheme of cash receipts, guarantees, liability. The financial part of a business plan in the same section usually contains a clear description of the state of the economy at the time of development, a forecast for the near future. It would be useful to assume the development of the economic situation on the market in several ways with the obligatory consideration of crisis moments and ways out of them.

A prerequisite is the consideration of possible risks, their assessment and ways out of them. For such information, usually a business plan contains a separate subsection. Each risk is considered in it separately with the assumption of the influence of external and internal factors. Any investor is interested in how an entrepreneur is going to protect his company from their impact. The amount of estimated losses poses a threat of losing part of the resources. This is the perceived risk.


All Articles