Financial Information

Financial Information:

You will be expected to provide financial information on a Per-forma basis out five years. Provide estimated financial information by the month, for the first two years, and annual totals for the next three years. This information is shown using generally excepted financial statements, and is based on your future projected income and expenses, use assumptions that you can defend.

Most lenders, and investors, will read your executive summary and then head straight for the financial section. They will crunch a few numbers, and then look at the management section. You will need to document your numbers, and be prepared to answer questions on the data provided.

Financial spreadsheet software, and business plan software, make the process somewhat easier and the software gives you the ability to update the numbers as needed. Do not allow any inconsistency to exist between the data quoted elsewhere in your business plan, and that shown in the financial section.

You should prepare all of the financial statements yourself. If you do use someone else to prepare them, be certain you buy into the assumptions and projections, study the numbers so you know them as if you did all the work yourself. If you are applying for a loan or seeking investors you must be prepared to answer questions.

The software you use to write your business plan will walk you through the financial statements.