From the course: The 45-Minute Business Plan

Startup summary

From the course: The 45-Minute Business Plan

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Startup summary

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- Startup summary. Now for a startup summary, you're going to want to write a brief description that defines the tables you are going to include. A sample of this section is in your handout, so you can get an idea of how those numbers are presented. Now, you're going to give a detailed breakdown of the expenses to date. This gives investors insight into what your expense priorities are, so they can understand what type of company they are investing in. If you've been tracking your expense in Excel, or with Accounting Software, you should be able to export them into tables for use in this business plan. As you can see here, this is where I will list my business assets and my current available cashflow. If you have accounts payable already, you'll want to list those in this section as well. Use this example to help identify your own startup funding snapshot. The last part of the startup summary is the general assumptions subsection. You'll open with a general statement like, the forecast for short term interest rates, longterm interest rates, income tax rates, and inflation rates. These forecasts are necessary because they affect the financial future of ABC LLC, regarding the interest expense it will incur on borrowed funds, the taxes it will pay, and the future expenses it will incur. Now in bullet point form, write a few sentences about those rates and tax liabilities. If you're showing a longterm interest rate of 12%, explain where you got that from. In the bullet point form for longterm interest rate, you may write something like, the current longterm interest rate, charged by transactional investors is 12%. Our forecast is that the longterm rate will remain the same through the life of the financial projection period. You want to do this for each rate or number you display in your general assumptions table.

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