- Market Directly to the Consumer
- Party Plan
- Direct Mail
- Telemarketing
- Multilevel Marketing
- Television Infomercials
- Pay-Per-Call
- Internet
- Market Through the Government
- Market Through Distribution Channels
- Market Through Foreign Trade
- Market Through Specialty Channels
- Market Through Email
- Retail Stores
- Sales Promotion
- Media Outlets
- Entrepreneur Profile
- Start-Up Costs
- Operating Costs
- 20 Financing Approaches
- Choosing a Bank
- 4 Cs of Credit
- Underwriting
- Loans
- Equity Financing
- Extending Credit
- Equipment Leasing
- Venture Capital
- Angel Investors
- Personal Guarantees
- Bookkeeping and Financial Statements
- Entrepreneur Profile
- Tax Basics
- Income Taxes
- When To Pay
- Minimizing Taxes
- Home Business
- Travel and Entertainment Expenses
- Automobile Expense and Mileage
- Retirement Plans
- Medical Expenses
- Sales and Use Taxes
- Property Taxes
- W-4 and I-9
- W-2, W-3 and Form 1096
- FICA, Social Security and Medicare
- Unemployment Taxes
- Form 1099
- Payroll
- Business Tax
- Excise Tax
- Tax Tips
- Audits
- Business Insurance Agents
- Workers’ Compensation
- Property Insurance
- General Liability
- General Medical
- COBRA
- Directors and Officers
- Employment Practices Liability
- Errors and Omissions
- Product Liability
- Operations
- Business Interruption
- Disability
- Life
- Claims
- IRS Section 125
- Home-Based Business
- Entrepreneur Profile
- Nondisclosure Agreement
- Sale of Goods Agreement
- Sale of Specialty Goods Agreement
- Terms and Conditions
- Promissory Note
- Guarantee
- Corporation Articles of Incorporation
- Corporation Bylaws
- Bank Resolution
- IRC Section 83 Election
- Independent Contractor Agreement
- Employment Agreement
- Sexual Harassment Policy
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Stephanie Chandler
Author of The Business Startup Checklist & Planning Guide |
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ORDER NOW: The Business Startup Checklist & Planning Guide |
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Tom Severance
Author of Business Start-Up Guide |
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ORDER NOW: Business Start-Up Guide |
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Steven D. Strauss
Author of The Small Business Bible |
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ORDER NOW: The Small Business Bible |
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Joe Kennedy
Author of The Small Business Owner's Manual |
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ORDER NOW: The Small Business Owner's Manual |
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7 - FINANCIAL PLAN
REQUIREMENTS
How much capital will your business require, and what sources are you seeking? How much will be equity? How much will be debt? Have you negotiated any barter deals or creative sources of funds? How much of your funding has already been secured? How much are you able to invest personally?
USE OF FUNDS
Elaborate on where the funds will be spent. Include descriptions of startup costs, capital expenditures and working capital. These figures should match the table created in the Financials section.
FINANCIAL HISTORY
If applicable, describe the financial history of the business, including revenues, profits and historical trends. What were the highs and lows? How can the highs be replicated or even increased? How can the lows be avoided? Provide one to three years of historical income statements, if possible.
INCOME STATEMENT PROJECTIONS
Create an income statement to demonstrate how your business will be profitable. Summarize the totals that are calculated in the Financials section. All businesses should create monthly projections for the first year, and annual projections for three years. When will your business reach its break-even point?
CASH FLOW PROJECTIONS
Create month-to-month cash flow projections for the first year. If your business sells products and services for cash, this analysis may not be necessary. However, if your business collects payment after products or services are rendered, or if you provide credit or allow terms for your customers, then this is a critical component of your business plan. Cash flow projections will demonstrate your ability to pay bills on a daily basis, especially when substantial sums are owed to you by customers.
BALANCE SHEET
Create a balance sheet to show your company’s assets and debts (liabilities). Your company’s net worth is calculated by taking your assets and subtracting your liabilities. (This is similar to calculating the equity in your house.) Describe what your balance sheet will look like at the end of your first year.
ASSUMPTIONS
Describe the logic behind your projections, including your methods for calculating sales, costs, loan payments and any other significant estimates. Are you expecting important industry or economic trends to continue? Do you require any technological advancements, governmental regulations or other significant changes to occur in order to meet your projections?