In the Financial Analysis section, calculate financial figures including start-up, monthly operating expenses and projections for the next five years.
Include forecasted income statements, balance sheets, cash flow statements and capital expenditure budgets. For the first year, it is a good idea to go into finer detail and include quarterly or monthly projections. Projections should be supported by clear explanations and match any funding requests.
A funding request should also specify whether you want debt or equity, any terms and the timeframe of the request. It should include details on how the funds will be used: buying equipment, paying salaries or covering bills. Include future strategic finacial plans like paying off debt.
Try our Funding for Texas Businesses Information Guide which includes information on business loans, venture capital, crowdfunding and government grants.
Balance Sheet: A financial statement listing the total assets and liabilities of a company at a given time.
Capital expenditure: Expenses incurred by a business for improvements that will depreciate over time.
Debt capital: Business financing that normally requires periodic interest payments and repayment of the principal within a specified time.
Equity: The ownership interest. Financing in which partial or total ownership of a company is surrendered in exchange for capital. An investor's financial return comes from dividend payments and from growth in the net worth of the business.
Financial ratio: The relationship between key figures found in a company's financial statement expressed as a numeric value. Used to evaluate risk and company performance. A valuable tool with which to measure progress against predetermined goals, a certain competitor, or the overall industry.
Financial statement: A written record of business finances, including balance sheets and profit and loss statements.
Owner's capital: Debt or equity funds provided by the owner(s) of a business; sources of owner's capital are personal savings, sales of assets, or loans from financial institutions.
Find these key terms and more in the Business Plans Handbook Collection glossary.