a. Cash Flow Projections – Two Years
Show monthly and year-end totals for two years for all the cash inflow (investment, loans and sales) and cash outflows (direct costs, expenses and other dispersements).
For a new business, the cash flow forecast can be more important than forecasts of profits. Cash flow statements detail when the company expects to receive cash from sales and when the company expects to pay its bills. Obviously, businesses must bring in at least as much cash as they pay out.
The cash flow projections will assist you to determine how much credit will be needed and when.
Show year-end amounts for two years.
The income statement presents the reader with the forecasted results of earnings activity over a period of time. Include written comments on increases in net income over the two-year period, reasons for any losses and reassurance that projections are as accurate as possible.
All assumptions, which were outlined in the Business Plan under the sections Company Outline, Operating Plan, and Marketing Plan, are clearly identified.
Supporting documents back up claims made previously in the business plan. Include the following documents and any other information, which you feel, would strengthen your business plan/
Copies of all leases, contracts, agreements, deeds or other legal documents.
- Business Incorporation
- Lease Agreement
- Insurance Policy / Quote
- Industry Analysis Market Research
- Promotional Materials / Research
- Management Resumes
- Letter of Intent / Contract – Suppliers
- Letter of Intent / Contract – Customers
- Detailed drawings, descriptions and photos of the operation and products
- Copies of technology rights