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In order to obtian financing , most financial institutions will want to see a Pro Forma Cash Flow Statement, a Pro Forma Income Statement, and a Pro Forma Balance Sheet. Profit is the result of subtracting expenses from sales, whereas cash flow is calculated based on actual payments received or paid. An Income Statement is used to calculate the projected net profit, by subtracting cost and expenses from sales and other income.
Return from Financial Plan Sample to Small Business Plan.
Your Business Financial Plan is critical to your success.
Use a financial plan sample from a business within your industry to help you build a stronger financial plan.
Small business finance software can also help you conduct an effective business finance analysis and strengthen your operation.
To break even, gross profit = Operating costs Say for instance, that the gross profit percentage for your business is 15%, and the annual operating costs are approximate to be R100,000.
The break-even turnover will be calculated as follows: Gross profit = 15 % (remember, to break even, gross profit = operating costs) Thus, 15% = R100,000.
The financial plan is a key part of your company’s business plan.
It not only helps you plan your startup costs and estimate income and expenses, but it is also essential to getting financing from lenders or investors.
Your financial plan also needs to include a startup and operations budget, showing the total capital needed to start the business and how much you will need to run it.
This budget should include things such as wages and salaries, benefits, rent, insurance, equipment, taxes, advertising and marketing expenses, utilities, and the cost of goods sold.