Financial Plan Business

Financial Plan Business-25
The Income statement can be generated keeping in consideration three scenarios: worst, expected, and best. While established businesses are required to produce Income Statement annually, startups and small businesses should provide monthly report while writing a business plan.

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This statement consists of three parts: assets, liabilities and the balance calculated by the difference between the first two.

The Cash Flow Projections consists of three parts: Cash Revenue Projection - Here you have to enter the estimated or expected sales figures for each month.

Cash Disbursements - This will take into account various expenses across categories.

This would increase transparency and help the investor to understand best, expected and worst sides of the startup.

Because the future is unpredictable, it’s advised that you create several versions of your forecast.

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