The financial plan section is the most important section of the business plan, especially if you need debt financing or want to attract investors. The financial plan has to demonstrate that your business will grow and be profitable. To do this, you will need to create a projected income and cash flow statement.

The purpose of the Financial Section is to demonstrate, with numbers, that your idea as developed in the previous sections of your plan will translate into a financial benefit. A business plan generally requires statements for three years. Yours, however, will include only one year. Once completed, the section will include the following:

• Projected Cash-flow statement – 1yr (excel spreadsheet)
• Projected income statement (excel spreadsheet)

Blank forms can be found on Blackboard as well as completed example documents.

• Projected Cash-flow statement: The Cash Flow projection shows your monthly anticipated cash revenues and disbursements for expenses for 1 year. It is important for demonstrating that you can manage your cash flow and will be a good credit risk.
• Projected Income Statement: The Income Statement shows your projected Revenues, Expenses and Profit. Do this on a monthly basis for at least the first year for a startup business

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Creating a strong financial plan is indeed crucial for a business plan especially when seeking finan... View the full answer