Friday, December 9, 2011

ENT640 Financial Analysis Section of the Business Plan Overview

What should be included in your financial analysis section?

This section explains in great detail with documentation, how much money is needed and how do you plan on making a profit. Provide documentation to support how this is going to happen. In start-up cases, you will need to use projections.  People have a tendency to over project what they think the business can do in 6 months, 1 year, and 5 years. Lenders want to see realistic data.

Projected income statements, balanced sheets and cash flow statements are required. If it is not a start-up then it is necessary to provide three years of data. You are asking for a loan so explain why it is needed and how do you plan on paying it back. Again provide personal commitment figures. Lenders like to see the individuals putting up their own capital.  

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