This is a continuing series of articles on how to write a Business Plan or Information Memorandum to raise capital, Part 10 discusses the business plan content specifically ‘Financial Information’.
Financial Information
This section is important as it represents the ‘gelling together’ of the business plan in the form of financial projections. It should include:-
1. Details of any previous financial record explaining briefly, historic trends and hiccups if any. If available, the past 5 years’ results should be summarized and the audited accounts together with latest management figures included in the appendices.
2. A summary of projected results for the next 3 to 5 years concentrating on the principal features of the projections, trends, rising and falling margins, fluctuations, commitment to R&D, major capital expenditure and key assumptions. Detailed projections together with the assumptions on which they are based should be provided in the appendices and should include:-
(a) Profit and loss accounts by month for at least 12 months, preferably 3 years, annually thereafter. The breakeven point should be clearly identified.
(b) Cash flow projections, monthly and yearly as above
(c) Balance sheets, monthly and yearly as above
To read the full, original article click on this link: Part 10: How to Write a Business Plan to Raise Capital – Financial Information | Venture Capital Tools
