Business Plan – Financial Summary

Summary: Check out this article to find out how to prepare you ‘Financial Summary’ section of your business plan.


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Financial data may be at the back of your business plan but it still as important as the other sections. As expected, there will be a lot of numbers showing in this section. 

Your financial summary should provide your company’s current value as accurate as possible.

In this section, you should consider adding charts, tables and graphs to guide your investors and readers with the figures in your company.

Let’s take at the key components of your financial summary:

Financial Statements

Provide a record of your financial dealings such as expenses budgets and cash flow statement. You should be attaching three main financial statements: the income statement, the balance sheet and the cash flow statement. The numbers will show where your company currently stands and where it expects to be in the near future. 

If your business is new with little numbers to show, you should still provide “pro forma” financial statements. Pro forma statements are hypothetical statements in which the financial statements would possibly appear after a certain set of events occur such as sales revenues, recording of accounts receivable, accounts payable, expenses and so forth. 

The information will also help you to determine how much financing your business needs and helps outsiders determine whether lending you money or investing in your business is a wise use of their funds.
Types of financing

You must also determine what type of financing would be most suitable for your business and the funding requirements. 

The use of funding

You need to explain how you will be using your investor’s money. You should break down the amount that will go toward to aspects such as inventory, marketing strategies and so on.

If you are seeking capital for expansion, you can show how much you plan to spend on remodeling or adding store locations.

Sales and income forecast

Come up with a sales forecast and income projections. 

The sales forecast is a chart that breaks down how much your business is expected to sell by month and by year.  If it is a new product or a new line of business, you have to make an educated guess. To do so, look at past results.

Breakeven analysis

The breakeven point is when your business’s expenses match your sales or service volume. The three-year income projection should allow you to make this analysis. 

This is an important for potential investors who want to know that they are investing in a fast-growing business and that there is an exit strategy for your start-up in which they can make a profit from.