FINANCIALS All businesses, whether startup or growing, need prospective financial data. To obtain financing, a company typically will need to project income and expenses for at least a three year period. Projections should be reviewed to eliminate potential inconsistencies. Also, if assumptions support the projections, it is important to provide realistic support and data in the business plan so that the reader understands the bases for the projections. To what extent do the financials support the objectives and goals of the business. Sales projections Monthly (1st year) Quarterly (Years 2-3) Cost to produce Labor Materials Packaging Cost to get to market Transportation Cost to promote Advertising Promotions Other Operating Costs (e.g., rent, utilities, salaries and payroll expenses, telephone, website, insurance, etc.) Breakeven point(s) Fixed cost/contribution margin Cash flow projections Monthly (at least 1st year) Quarterly (Years 2-3+) Sources and uses statement (what capital/items are needed to start or expand the business; where will funding for such costs come from)
FINANCIALS All businesses, whether startup or growing, need prospective financial data. To obtain financing, a company typically will need to project income and expenses for at least a three year period. Projections should be reviewed to eliminate potential inconsistencies. Also, if assumptions support the projections, it is important to provide realistic support and data in the business plan so that the reader understands the bases for the projections. To what extent do the financials support the objectives and goals of the business. Sales projections Monthly (1st year) Quarterly (Years 2-3) Cost to produce Labor Materials Packaging Cost to get to market Transportation Cost to promote Advertising Promotions Other Operating Costs (e.g., rent, utilities, salaries and payroll expenses, telephone, website, insurance, etc.) Breakeven point(s) Fixed cost/contribution margin Cash flow projections Monthly (at least 1st year) Quarterly (Years 2-3+) Sources and uses statement (what capital/items are needed to start or expand the business; where will funding for such costs come from)