Business Plans: Writing the Business Plan

Business Plan: Financial Plan

A guide on how to prepare the financial plan section of your business plan.

By Greg Fisher

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Financial Plan (3 - 5 pages)

The financial plan is a reasonable estimate of your company's financial future. Include a few paragraphs on the main features in the financial plan and back this up with financial projections. Don't include too much financial detail in the body of the business plan. If you have detailed projections and supporting calculations, place them in the appendix. The following are the most important financial documents to include in the financial plan:

Start-up expenses and capitalisation: a description and explanation of what it will cost to launch the business and where you expect to get this money
12-month profit and loss projection (month-by-month) and a three-year profit and loss projection (quarter-by-quarter)
A 12-month cash-flow projection and a three-year cash-flow projection (quarter-by-quarter)
A projected balance sheet at start-up and at the end of years one to three
A break-even calculation

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