Writing Your Business Plan, Step 9: Financial Plan (Preparation)

May 21, 2009 at 6:00 am Leave a comment

Creative Commons License

Creative Commons License

Did you fire up your calculator?  We are going to work through the financial plan.  This is the final segment of your business plan.  HURRAH!  It requires some prep work and is a bit lengthy.  So, we are going to break this down into 3 posts:

  • Preparation (what to prepare before writing the financial plan)
  • History (looking back on the finances of your business)
  • Future (looking forward on the finances of your business)

First: Preparation

The financial portion of your business plan requires some planning and preparation.  Let’s break it all down.  (NOTE:  This is just the summary in preparation for the actual writing of the financial plan which will take place next Monday and Tuesday.)

Soooo… here is what you are going to need to know.  We’ll assemble this into financial statements next week:

  • Assets – what do you own in your business? (computers, inventory, etc.)
  • Liabilities (AKA Debts) – what do you owe in your business?
  • Equity – how much have you invested (or has someone else invested) in your business?
  • Revenues – how much did you make in sales in 2008?  (this can typically come from your tax return)
  • Expenses – how much did you spend in 2008?  (also should be traceable to your tax return)
  • Cash – where is that cash register?  (not the physical register, but that paper thingie that tracks which checks you’ve written)

Spend the weekend putting these numbers together.  Next week, we’ll be putting them into the “magical” financial statements of your business.

Come back tomorrow for a little business plan break.  We’ll be featuring another fab industry insider.

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Entry filed under: 13 Step Business Plan, Accounting, Budgeting, Excercises, Plan It, Strategy.

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