Of course a business plan isn’t complete without a financial plan. All the calculations in our business plan are imported Excel sheets in the document and are exact in the same lay-out.
The financial chapter consists of:
|Investment Budget and financing||This is also called the opening balance sheet. Here is stated what you want to invest in fixed tangible assets, fixed intangible assets and current assets and how it’s financed.
Examples of fixed tangible assets are: inventory, machinery, decoration.
Examples of fixed intangible assets are: start-up costs, goodwill, software-development, patents
Examples of current assets are: Initial stock, stocks, cash & banking, deposit rent
|Notes on the investment budget||Each item of the investment budget is calculated and explained. This is necessary so the investor or bank can see that you have carefully thought about the investment and therefore their risk is reduced.|
|Profit and loss statements||This is also called the Operating Budget. In this section the revenues are calculated as a result from the market-research. This is done for the following 3 years. To obtain a net-profit we have to deduct the costs which are slighty dependent of the business you want to start. Most costs are common, like rent, depreciation, salaries, overhead etc.|
|Notes on the Profit and loss statements||Each item of the profit and loss statement is calculated and explained. This is necessary so the investor or bank can see that you have calculated the revenues according to the market-research and are not just vague estimates. The financier wishes a clear picture of the chances for you to pay back the loan or pay out the dividends on the shares in case of a participation. Therefore each cost item also has to be calculated in detail. In our business plan this is stated for you to further fill in for your specific business.|
|Cash flow forecast||This is also called the Liquidity Budget. At the beginning you start with the working capital which is a current asset and is a result of the Liabilities minus the investment in fixed and other current assets. Of course this can be raised with a request of a current account. From there the revenues are added and the expenses are deducted. The difference with the profit and loss statement is that some costs are no expenses and vice versa. For instance, depreciation is a cost and appears on the profit and loss statement but is no real expense and therefore not visible in the cash flow forecast. The VAT on revenues is visible in the cash flow statement but has no place in the profit and loss statement because figures in the profit and loss statement are always calculated without tax.|
|End balance sheet||The end balance is described to have an exact picture of where you stand with your business in the following 3 years. For example, Cash & banking level will increase according to the cash flow statement and Net profit from the profit and loss statement will be added to the owner’s equity.|