The financial section of the business plan is where you explain the financial needs of the business and the business cash flow projections for day-to-day operations.
Typically the plan would include the following:
- a summary of capital requirements (a description of how much you will need to start your business and how the money will be spent).
- personal financial statement of the principals of the business.
- pro forma financial statements of projected or estimated statements as opposed to actual or historical summaries of financial activities.
Projected financial statements include:
- a 12-month cash flow statement.
- three years of historical financial documents (if you are an existing business).
- a three-year projected income statement.
- a three-year projected balance sheet.
All projected financial statements should also include a list of well-documented assumptions that are the basis for the numbers.
