And the type of funding you need will dictate how your plan (especially the financial section) is written.
In other words, investors will want to know how they are going to profit from this investment down the road, while lenders will want to see how you will be repaying their loan.
At our Entrepreneur magazine Roundtable, financial pros offer tough talk about the business plans of first-time entrepreneurs: Related: What Investors Really Think About Your Business Plan Video: How Can I Hire Someone to Help Write My Business Plan?
If you're seeking funding for your business venture, you have two options.
These projections are forecasts of your cash inflows and outlays, income and balance sheet.
Sociology Dissertation - Startup Business Plan Financials
They show bankers and investors how you will repay loans, what you intend to do with your money and how you will grow.Be sure to include recurring expenses—salaries, rent, gas, insurance, marketing, raw materials, maintenance and the like—and one-time purchases, such as machinery, website design and vehicles.Research industry spending to get a better idea of the numbers.If you're writing this for an existing business, then these statements will reflect your past business history and current financial situation.Break your financials down into monthly projections for the first two years and then move to annual projections.Regardless of the funder, you'll need solid financial projections that cover all of the bases. For many, the financial portion of your business plan is its heart.If you think about it, why else are you going into business? Yeah, maybe, but most likely what you're really after is making money!What makes up the heart of your business plan is the profit and loss (or income) statement, the balance sheet, and a cash-flow statement.If your business is a startup, these will all be projections, or pro forma statements.You can go to banks and other lending institutions and seek a business loan, or you can go in search of venture capitalists.Which source you choose, will depend on the amount of funding you need.