May 312007
A business plan should always include an analysis and forecast of the company’s financial position. It will detail things such as:
- start up costs
- personal investment
- additional sources of finance
- cashflow forecast
- profit & loss forecasts
- balance sheet forecasts
- historical financial information (if the business is an existing one rather than a start up)
Just as important as the figures themselves are
- details of the assumptions made in arriving at them
- sensitivity analysis (how much things will need to change before your figures don’t work anymore.
