Explain the financial components of a business plan.
What will be an ideal response?
The one-page financial summary section starts with a paragraph showing the overall financial results. It is followed by "The Ask," which is what you are seeking from others, the use of the investment funds, and the projected returns.
For all types of business plans, a set of financial reports or projections then follows as the central component of the Appendix.
The financial statements expected include: (1) income statements and its assumptions, (2) cash flow and its assumptions, and (3) balance sheet and its assumptions.
Each of the financial statements also includes its assumptions, which explain how the computations are made, which items are included or excluded, and whether there are any special considerations underlying the particular numbers.
For start-up businesses, it is also common to include a listing of the expenses incurred in the start-up process. For an existing business, the financials report the last two years of actual data, and then offer three-year projections for the income, cash flow, and balance sheet.
A schedule of the major milestones or benchmarks the company plans to achieve is often included in the financials section. If significant milestones have already been achieved, these can top off the schedule.
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Which of the following statements is true of the Statute of Frauds?
A) An executory contract that is not in writing even though the Statute of Frauds requires it to be is enforceable by either party. B) Executed oral contracts that should have been in writing under the Statute of Frauds can be rescinded. C) If an oral contract that should have been in writing under the Statute of Frauds is already executed, either party may seek to rescind the contract. D) Most states require contracts to pay compensation for services rendered in negotiating the purchase of a business to be in writing.
Using a freight forwarder usually
A. is not economical for a small firm. B. increases transit time and shipping costs. C. increases transit time and sometimes lowers shipping costs. D. lowers shipping costs for a large firm. E. reduces transit time.
The final assembly schedule (FAS):
A) schedules customer orders as they are received based on components planned in the MPS. B) is basically the same as the MPS for a make-to-order product. C) is really a synonym for the master production schedule. D) A and B above E) None of the above is true.
When a project team elects to purchase insurance, or adopts a fixed price contract with a vendor, or hires an expert, it is demonstrating which of the following risk response strategies?
a. avoid a threat b. transfer a threat c. mitigate a threat d. assume a threat