Location and Facilities optional 1. Company Overview There are many variations and approaches on how to lay out the various components of a business plan. The primer below is meant only to explain the broad differences between the most common company types. So for example, if you sell someone a cupcake and they sue you because they found a hair in it, and you lose in court, the creditors can legally go after your personal possessions — such as the roof over your head.
Here's some advice on how to include things like a sales forecast, expense budget, and cash-flow statement.
Based in the Washington, D. Getty Images A business plan is all conceptual until you start filling in the numbers and terms. The sections about your marketing plan and strategy are interesting to read, but they don't mean a thing if you can't justify your business with good figures on the bottom line.
You do this in a distinct section of your business plan for financial forecasts and statements. The financial section of a business plan is one of the most essential components of the plan, as you will need it if you have any hope of winning over investors or obtaining a bank loan.
Even if you don't need financing, you should compile a financial forecast in order to simply be successful in steering your business. The Purpose of the Financial Section Let's start by explaining what the financial section of a business plan is not.
Realize that the financial section is not the same as accounting. Many people get confused about this because the financial free sales business plan examples that you include--profit and loss, balance sheet, and cash flow--look similar to accounting statements your business generates.
But accounting looks back in time, starting today and taking a historical view. Business planning or forecasting is a forward-looking view, starting today and going into the future. It's an elaborate educated guess. And you don't spend a lot of time on minute details in a financial forecast that depends on an educated guess for sales.
You're going to need it if you are seeking investment from venture capitalists, angel investors, or even smart family members. They are going to want to see numbers that say your business will grow--and quickly--and that there is an exit strategy for them on the horizon, during which they can make a profit.
Any bank or lender will also ask to see these numbers as well to make sure you can repay your loan. It should be a guide to running your business," Pinson says. One way, Berry says, is to break the figures into components, by sales channel or target market segment, and provide realistic estimates for sales and revenue.
But if you break the guess into component guesses and look at each one individually, it somehow feels better," Berry says. The Components of a Financial Section A financial forecast isn't necessarily compiled in sequence. And you most likely won't present it in the final document in the same sequence you compile the figures and documents.
Berry says that it's typical to start in one place and jump back and forth. For example, what you see in the cash-flow plan might mean going back to change estimates for sales and expenses.
Still, he says that it's easier to explain in sequence, as long as you understand that you don't start at step one and go to step six without looking back--a lot--in between. Start with a sales forecast. Set up a spreadsheet projecting your sales over the course of three years.
Set up different sections for different lines of sales and columns for every month for the first year and either on a monthly or quarterly basis for the second and third years. Because you want to calculate gross margin.
Gross margin is sales less cost of sales, and it's a useful number for comparing with different standard industry ratios. The best way to do that, Berry says, is to look at past results.Use and Reprint Rights for Your FAST Business Plan Template This template has been written to include instructions for creating your final business plan.
You are free to edit and use the material within your organization. COST OF GOODS SOLD: The above example dealt with a business that generated revenue through rentals. Moreover, the TRY OUR BIKES company purchased an inventory of bicycles and safety equipment and rented them to customers.
Business Forms & Templates.
Get instant access to hundreds of business forms, templates, and contracts online today. Find documents for almost every kind of business such as purchase orders. This year, give yourself the gift of a business plan -- one that clearly spells out your goals, how you’ll pursue them, what you must do to get there, and what’s in your way.
Here's a simple template with some of the key elements to get you started. Sales plan template is a document that describes the objective and keeps track of activities planned to execute in a business. Sales plan template is very important for an entrepreneur because it contains marketing plans with clarity on customer groups, revenues, sales mix and other necessary information.
This sales plan templates enlists types of products or services the business would. An outline of your company's growth strategy is essential to a business plan, but it just isn't complete without the numbers to back it up. Here's some advice on how to include things like a sales.