The Financial Aspect of Your Business Plan

Developing a business plan is essential when it comes to starting your own business and being successful. One area to put a lot of thought into is the financial aspect of your business plan. Investors will want to see that you have thought things through and have accurate information.

When you are putting together your plan, you will want to make sure that your business looks like a great investment opportunity. Here are a few things that you should include in your financial section:

  • The amount of funding that you will need to get started
  • What you have planned for the money you acquire
  • The sources of your funds, including personal investment
  • A tentative repayment date
  • Liability limits and other risks involved
  • The return on investment that investors will see
  • Assumptions in the economy that may affect your business

When you detail the financial section of your business plan, you will also want to include more detailed information such as:

  • Market share
  • Break even analysis
  • Return on investment
  • Cash flow
  • Income statements
  • Balance sheets

These financial statements should take a lot of time and consideration to ensure they are done properly. Investors will likely not take a chance with your business if you don’t consider the financial aspects in great detail ahead of time.