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The plan writers should have an in depth understanding of financial pro forma statements, cost and cash flow analysis and revenue modeling. Investors are typically numbers people. They know and understand financial statements and they will know very quickly if someone has simply pulled numbers out of the air.
A critical element of a good business plan is the market analysis. A true leading edge provider of business plans will subscribe to a numbers of online market research services such as Profound and Dialog. These services allow the plan researcher to access the most current data available on any market, product or application.
DEAL
BUSINESS PLAN
RESOURCES
OPPORTUNITY
OPPORTUNITYIS DEFINED AS ANY ACTIVITY REQUIRING THE INVESTMENT OF SCARCE RESOURCES IN HOPES OF A FUTURE RETURN.
CASH-FLOW MONITORING
MICROSCOFT OFFICE HAS NUMEROUS TEMPLATES TO HELP ANY SMALL BUSINESS MONITOR CASH-FLOW, CAPITAL BUDGETING, PROFITABILTY, BREAKEVEN ANALYSIS, INVENTORYCOST OF GOODS SOLD ANALYSIS AND TURN NUMBERS INTO CONCLUSIONS. MICROSOFT TEMPLATES: 1. 13-WEEK CASH FLOW MODEL 2. STATEMENT OF CASH FLOWS 3. INCOME STATEMENT 1 YEAR 4. BREAKEVEN ANALYSIS 5. CAPITAL BUDGETING-RETURN-ON-INVESTMENT
CASH-FLOW MONITORING
6. PROJECTED BALANCE SHEET 7. OPENING DAY BALANCE SHEET 8. BALANCE SHEET WITH FINANCIAL RATIOS 9. FINANCIAL HISTORY AND RATIOS 10. INVENTORY-COST OF GOODS SOLD ANALYSIS 11. NEW PRODUCT SALES AND PROFIT FORECASTING 12. PRODUCT PROFITABILITY ANALYSIS 13. CUSTOMER PROFITABILITY ANALYSIS 14. FIVE YEAR PLAN 15. RISK ASSESSMENT AND FINANCIAL IMPACT 16. TURN NUMBERS INTO CONCLUSIONS MICROSOFT ACCESS DATA BASE HAS SIMILAR TEMPLATES FOR MONITORING PEOPLE AND OTHER RESOURCES.
4.
6.
SUPPORTING DOCUMENTS AND FINANCIAL STATEMENTS ORGANIZATIONAL CHART RESUMES FINANCIAL STATEMENTS PRODUCT/SERVICE INFORMATION INDUSTRY STATISTICS DETAILED COMPETITIVE INFORMATION OTHER RELEVANT INFORMATION
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Total dollars required? Start-up cost/breakdown? Overall size of the market? Market penetration means, methods and dollars required? Company share of the market and timeline? Competitor Analysis? Break-even Point? Investor or Debtor Exit Strategy? Return on Investment for Investors? Management Qualifications? Summation?
A DCF method is available for use on my MPC.EDU website entitled jk_nflowtoval_xls. For sample of an industry used month-to-month cash flow look at monthly cash flow_mcfp2 or information on Venture Capitalist look at The Venture Capital Industry topic.