In fact, it is the most scrutinized section of the plan.
Investors may actually pay more attention to it than other parts of the plan because the value of a business is in its figures.
The financial section gives insight into the profitability of the business, aspects of debt and equity estimated operating expenses, financial statement forecasts, future growth projections and business financing.
The financial data that’s contained in this section is quite structured and in-depth.
When calculating the break even points, it is recommended to do them over a three year period for consistency.
It also remains your own prerogative to decide whether you will provide readers of the business plan with explanations on the finer details of the analysis.The balance sheet normally states the net worth of the business as at a certain date.Most businesses draw it at the end of their fiscal year. It is what breathes an air of life and practicality into the business.The financial section many times appears at the back of the plan, but this does not downplay its importance.You may find charts, formulas, tables, graphs, and spreadsheets.It may require the input of a financial expert such as an accountant in order to write it accurately.The second part of the financial section will revolve around the forecasted financial statements and analyses.Here, the following financial statement and analyses are laid down: I Forecasted income statement II Cash flow statement (Forecasted) III Forecasted balance sheet IV Sensitivity analysis V Breakeven analysis VI Ratio analysis It is best to put each statement and analysis on its own page.The format and structure of the introduction is purely left to the drawer of the business plan.The introduction basically gives the reader a basic outline to what is contained in the section.