From the course: The 45-Minute Business Plan

Projected cash flow and balance sheet

From the course: The 45-Minute Business Plan

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Projected cash flow and balance sheet

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- Part of the P & L is the Cash Flow Statement. Once you've compiled the Cash Flow Statement, you'll want to follow the Standard Opening Statement and then a breakdown of the separate line items with a brief description. Since this will take you some time, we've added an example in the handouts for you to reference. Keep in mind, this is simply an example and not intended to be a blanket formula for every business plan. Your Cash Flow Statement needs to be specific to your business. Take some time after this course to review and implement. If you're using an accounting software, these numbers should be an easy format for you to take out and add to this section. Projected Balance Sheet. After all the numbers have been assimilated, how does that look from a projection standpoint year over year? Let's show the investors the business's projected net worth. This section will not need a breakdown of the elements, as they are previously disclosed throughout the plan. You will need to write an opening statement before showing the table or sheet itself. Your opening statement could look like this. The Balance Sheet Table and the First 12-month Breakdown in the Appendix found at the end of the Business Plan presents the Projected Balance Sheet for ABC, LLC. If all rates forecast proved to be accurate and all financial projections are achieved, the Projected Balance Sheet reflects healthy growth of net worth and a strong financial position that is spurred by the funding being requested. As you're probably starting to realize, you'll need to build a Pro Forma. There are several templates available through a simple Google search. If you're proficient with Excel, you may be able to create your own, and depending on the edition of Excel, you have, it may already include Pro Forma templates. Pro Formas can be intimidating if you've not worked with them in the past, but take your time and you should be able to figure it out. We've also included an example that you can download.

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