It is of prime interest to the lender and shows how you intend to repay your loan.
Cash flow statements show both A Pro Forma Income P&L (Income) Statement showing projections for your company for the next three years.
Include only the supporting documents that will be of immediate interest to the person examining your plan.
Keep the others with your own copy where they will be available on short notice.
If your business is new and has not yet begun operations: the financial section will end here and you will add a Personal Financial History.
If yours is an established business: you will include the following actual performance statements.Shows your business financial activity over a period of time (monthly, annually).It is a moving picture showing what has happened in your business and is an excellent tool for assessing your business.Revenue and expense figures are drawn from the three-year income projection.: The following (G-J) are Actual Performance (Historical) Statements.They reflect the activity of your business in the past.Measures are expressed as ratios or percentages that can be used to compare your business with industry standards.If you are seeking a lender or investor, ratio analysis as compared to industry standards will be especially critical in determining whether or not the loan or venture funds are justified.It can be expressed in: (1) Total dollars or revenue exactly offset by total expenses -or- (2) Total units of production (cost of which exactly equals the income derived by their sales).This analysis can be done either mathematically or graphically.The following are the major documents you will want to include in your Business Plan.The work is much easier if they are done in the order presented because they build on each other, utilizing information from the ones previously developed. It shows cash inflow and outflow over a period of time and is used for internal planning.