Although there are no right or wrong business plans, they can fall into two different categories—traditional or lean startup.
The plan document also contains financial spreadsheets with projected revenues, expenses and profit. There are definitely more benefits to creating and sticking to a business plan including being able to think through ideas without putting too much money into them—and, ultimately, losing in the end.
It summarizes all the financial data about your business in three categories; assets, liabilities, and equity. A business plan is a written document that describes in detail how a business—usually a new one—is going to achieve its goals.
Lenders want to know that you can follow a budget and that you will not over-spend.
They are going to want to see numbers that say your business will grow--and quickly--and that there is an exit strategy for them on the horizon, during which they can make a profit.
As the word "reconciliation" suggests, this section shows an opening balance, which is the carryover from the previous month's operations.
Even if you don't need financing, you should compile a financial forecast in order to simply be successful in steering your business.
Some business planning software programs will have these formulas built in to help you make these projections. Pinson also recommends that you undertake a financial statement analysis to develop a study of relationships and compare items in your financial statements, compare financial statements over time, and even compare your statements to those of other businesses.
Set up different sections for different lines of sales and columns for every month for the first year and either on a monthly or quarterly basis for the second and third years.