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The reader of the business plan will see how your net income changes when your sales go up or down by say, 15%, 20%, and 30%.
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.
An example of an introduction is as follows: “This financial plan gives the forecasted financial statements of Company ABC for a three year projected period.
The income statement, cash flow statement and balance sheet have been drawn and the assumptions made have been outlined.
This analysis is used to identify the effect that increased and decreased forecasted sales have on the net income of the business.
This increase and decrease are usually in percentage form.