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Financial Forecasts of a Business PlanThis section of your business plan essentially turns your plans into numbers. As part of any business plan, you will need to provide financial projections for your business. Your forecasts should run for the next three to five years. However, the first 12 months' forecasts should have the most details, including assumptions both in terms of costs and revenues, so investors can clearly see your thinking behind the numbers. Your financial forecasts should include:
Things to consider:
Resources to help you understand financial concepts and learn about tasks like budgeting, financial analysis and bookkeeping.
Find out how your firm measures up to comparable small businesses within your industry. Other Useful Information The following sections are not always required, but will certainly enhance any business plan:
Business plan template you can find using the following address: http://www.canadabusiness.ca/eng/
Summary Business plans are decision-making tools. There is no fixed content for a business plan. Rather the content and format of the business plan is determined by the goals and audience. A business plan should contain whatever information is needed to decide whether or not to pursue a goal. For example, a business plan for a non-profit might discuss the fit between the business plan and the organization’s mission. Banks are quite concerned about defaults, so a business plan for a bank loan will build a convincing case for the organization’s ability to repay the loan. Venture capitalists are primarily concerned about initial investment, feasibility, and exit valuation. A business plan for a project requiring equity financing will need to explain why current resources, upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit valuation. Preparing a business plan draws on a wide range of knowledge from many different business disciplines: finance, human resource management, intellectual property management, supply chain management, operations management, and marketing, among others. It can be helpful to view the business plan as a collection of sub-plans, one for each of the main business disciplines. A good business plan can help to make a good business credible, understandable, and attractive to someone who is unfamiliar with the business. Writing a good business plan can’t guarantee success, but it can go a long way toward reducing the odds of failure.
Date: 2015-12-11; view: 1039
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