How Do You Write A Financial Plan?
A financial plan is the heart of any startup or existing business. It is a culmination of the income statement, the cash-flow projection and the company’s balance sheet. The financial plan is a way to look at a business through a financial lens, which is the view most investors prefer. When preparing a financial plan, it is not mandatory that you be a mathematician, but you need to understand how the numbers affect a business. Step 1 Prepare your income statement. The income statement is one of the three parts that make up the financial plan. The income statement is a financial statement that will express your company’s revenue and expenses. It will provide you and your investors with a financial picture of how the company is doing or will do. Step 2 Prepare a cash-flow projection. A cash-flow projection allows you to see just how the cash is flowing in and out of your business. This financial statement allows you to prepare for a surplus or a loss. If this is a startup business ventur
