Though most of the entrepreneurs hate to make a business plan, in my view, it’s pretty vital document for a business owner to prepare the business plan so that everyone has one view about the business. Also, financial numbers are the direct indicator of the success or failure of any business.

The financial projection is the one document that everyone whether your investor, lenders and anyone else will ask you first before they give any consideration for potential funding or alliances. If you are looking for funding, joint venture, alliances or partnership with anyone, providing financial statements is critical.

The following financial projections and reports should help you provide the clarity to the stakeholders about your business:

Financial Summary: Once you prepare your income statement, expenditure statement, balance sheet and cashflow, you can summarize the key financials into a single statement to get an overview of your financial projection.

Income Statement: Your income statement should list projected revenues and expenses. It should provide the detailing in a manner that it includes all the sources of revenues that you envisage to earn in your business and it should also provide the details of all expenses. The income statement will be able to show how and when you are going to achieve the breakeven and profitability.

Cash Flow Statement: This is a vital document that shows you the cash inflow and outflow in your business. A detailed breakup of income and expenses will guide you to adequately and timely arrangement for the funding to support the expenses for the smooth operating of your business.

Balance Sheet: It shows about the financial health of your business and includes key insights about assets, liabilities, shareholders, and earning retained in your company to fund future growth and expansion plan.

Financial Plan Summary

The financial summary helps you plan and monitor your financial goals and acts as windows for you to look at them to analyze your current state as well as take necessary actions to accomplish them. While creating, analyzing and reviewing your financial summary your focus should be on the following key aspects.


 Key Questions
  • Is your financial statement attuned to your business goals?
  • Have you identified all the revenues and expenses? When you look at your financial summary, do you feel comfortable about the numbers that it shows?
  • What alternative actions you may need to think about in case you don’t achieve the desired result?
  • What are the options available to you to handle unplanned and under performing situations?
  • Is the plan you have created can be implemented? What kind of challenges may you face during the action?
  • Have you reviewed and revised the financial plan to make it the best that you can anticipate?

There are several templates available online for you to use for preparing these financial statements. We are attaching the format that we liked the most and used for planning several of our businesses

Make a copy using Google Docs-> File->Make a copy option.


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