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VIII. Financial Data

The proof of the business plan is in its pro forma financial reports. Many readers read the cover letter first, the summary second, and skip back to the financial data before reading the rest of the plan. The discussions contained in the other sections of the plans should be reflected in the revenue and expense columns of the projections.

1. List the sources and uses of the proposed funding.
2. List the productive purposes to which the money will be put.
3. Develop pro forma balance sheets for three years.
4. Prepare projective purposes to which the money will be put.
   1. Detail by month for the first year.
   2. Detail by quarter for the second year.
   3. Provide an outlook for the third year.
   4. Explain how you were able to develop the projections. Provide list of major assumptions.


5. Prepare projected cash flow statements.
   1. Detail by month for the first year.
   2. Provide notes of explanations and assumptions.
6. Prepare financial statements for businesses already in existence.
   1. Balance sheets for the past three years.
   2. Income statements for the past three years.
   3. Personal and business tax returns for the past three years.
7. Develop break-even analysis.
8. Develop key financial ratios and comparison with standards.
9. Develop cost/benefit analysis.
10. Develop calculation of the pay back period.
    

Next Section - Summary and Conclusions.

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