Business Plan Project Workbook

Chapter 11: Financial Plan

Learning Objectives

Present past and current finances and financial forecasts (cash flow statements, income statements, and balance sheets).

Explain the assumptions on which financial projections are based.

Prepare a statement of sources and uses of funds that tells potential lenders and investors how much money is needed to start the business and how the money will be spent.

Prepare a financial analysis that includes a break-even analysis, liquidity analysis, profitability analysis, debt analysis, and investment analysis.

Describe your exit strategy, including how your investors can expect to recoup their investments and earn a sufficient return and how they can cash out their investments and achieve liquidity.