Financial Business Plan

Create the ultimate winning business plan with Ultimate Business Planner
  • Walks you through every step with "plain-English" instructions, advice and how-to hints.
  • Includes over 1,000 indexed sample business plan exerpts and 25 complete business plans samples to help you get started.
  • Comes with hundreds of small business start-up resources.
  • In minutes you'll easily create projected P&Ls, Cash Plans, Balance Sheets, Financial Ratios, and more!
  • Works with MS Word®, MS Excel®, Adobe® PDF, and QuickBooks®

Business Plan Software

What are financials?

Business plan financials estimate how well your business will perform under certain assumptions. For example, what happens to your business if it sells 10,000 widgets, or 20,000? What happens if your business acquires 50,000 customers, or only 15,000? Typically, a business plan includes three sets of financial projections: (1) most likely; (2) best case; and (3) worst case. These scenarios let readers know what will happen to your business if everything goes as planned, or if business is much better or worse than expected.

Financial projections are not only essential for potential investors who need to see how you are going to repay them, they help you determine if starting a new business or expanding an existing business makes financial sense. Below are summary explanations of the business plan financials commonly included in a business plan, along with a link to a sample created using Ultimate Business Planner.

Beginning Balance Sheet

A beginning balance sheet is a financial snapshot of your business at the beginning of your forecast. It lists your business's assets, liabilities, and owners' or stockholders' equity. Assets are anything your business owns that has monetary value, liabilities are the claims of creditors against the assets of your business, and equity is calculated by subtracting your liabilities from your assets. Basically, it shows how much you have, how much you owe, and the difference is your equity level

Balance Sheet

Typically, at the end of every month of operation, a balance sheet is built showing how the operation of the business affected the assets, liabilities, and equity of the business.

Profit & Loss

A profit and loss projection (P&L) shows you how much revenue your business will generate from the sale of products and services and lists your operating expenses. Revenues minus expenses is how much income your business produces. Remember, income does not equal cash. To see how much cash your business will produce, you need to take a look at your cash plan or cash flow projection.

Cash Plan

A cash plan shows you how much cash is coming into your business and how much cash is going out. It also shows how much cash will be left over or how much additional cash you will need to pay your expenses.

Ratio Analysis

Financial ratios let you compare the projected financial performance of your business to the actual businesses in the same industry. Companies that compile financial information for ratio analysis include Dunn & Bradstreet Corporation, Moody's Investors Service, Inc., Standard & Poor's, and Robert Morris Associates.