The third crucial part of your initial Business Plan entails how your business will obtain enough money to actually survive until it is successful. The failure of many small businesses relates directly to underestimating the amount of money needed to start and continue the business. Most business owners can, with relative ease, estimate the amount of money needed to start a business. The problem comes with arriving at a clear estimate of how much money will be necessary to keep the business operating until it is able to realistically support itself. If you can honestly determine how much is actually necessary to allow the business time to thrive before you can take out profits or pay, the next challenge is to figure out where to get that amount of money. To help you arrive at a clear picture of your business’s finances, a Business Financial Work¬sheet follows, since there are many finance services that can be used for this, if you’re in Debtor in possession financing, you can use this kind of services for this.
. This worksheet will lead you through a number of questions to help you determine the amount of money needed and where it might be obtained. Following the worksheet are instructions on preparing both a Estimated Profit and Loss Statement and a Current Balance Sheet. Both of these financial forms will help you actually put some real numbers into your plans.
When you have completed the Business Financial Worksheet and your two financial forms, you will again need to prepare a written Financial Plan from your worksheet answers and the data that you have compiled on your Profit and Loss Statement and Balance Sheet. After your written Financial Plan is completed, complete your Executive Summary, and compile your completed parts into your entire final Business Plan package. You may then use your formal plan for presentations to prospective investors, bankers, family, or friends as you go in search of the assistance you will need to make your business a success. You will also need to develop a financial recordkeeping system.
© Nova Publishing Company, 2005