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Financial Planning and Analysis
Financial Plan requirements:
Financials demonstrate the viability of a business while they help justify the need for funding. In this section describe financial estimates and rationale which include financial statements and forms that document the viability of your proposed business and its soundness as an investment.
1. Prepare three-year projections for income, expenses, and sources of funds.- Base predictions on industry and historical trends.- Make realistic assumptions.- Allow for funding changes at different stages of your companyÂ's growth.- Present a written rationale for your projections.
2. Indicate your startup costs.- Detail how startup funds will be used to advance your proposed business- List current capital and any other sources of funding you may have.- Document your calculations.- Use reasonable estimates and/or actual data (where possible).
3. Create a cash-flow statement.
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