When you’re getting prepared to start your dream business, there are many things to consider. One of the most important factors are the financials! Every business plan should contain financials which will allow potential investors to see that you have completed your homework diligently, and that you do have a plan in place. It is equally important to any potential investor(s) on whether you have the funds (or potential funds) to go forward with your new idea and how the funds will be allocated.
The main focus by an investor or lender are the financials in your business plan. This is the “heart” of the business plan and must be formatted well for someone reviewing the plan. There are four key items to include in your business plan financials are:
- Balance Sheet
The balance sheet will show how much cash you have available. This includes equipment, property, and cash. The balance will not only show assets, but liabilities as well. It gives a good, well rounded financial picture.
- Income Statement
The income statement will show potential investors whether your business has the capability of making money. Essentially the income statement is looking for generated revenue and expenses.
- Cash Flow Statement
The cash flow statement is what connects the balance sheet and the income statement. This statement serves as a summary of how cash comes into the business and is then used.
- Statement of Equity
The statement of equity shows how the capital account is changed. Capital increases when the owner contributes to it and earns income, and it decreases with expenses and withdrawals.
When you allow The Best Business Plan.com to prepare of all these essential documents as part of your business plan, you’ll find that our costs are a fraction of the cost of hiring an accountant or an over-priced CFO. We also get this done in a timely manner. Rather than months of work (increased cost) we can complete your financials in a matter of days. Get started here with a free quote.