6. What is the net cash from operations (subtract the total cash disbursements
from the total cash available)?
7. What is your beginning cash balance (carry the net cash from operations to
the next month and that becomes your new beginning cash balance)?
Creating Your Balance Sheet
1. What are your company assets? Include all cash, receivables, inventory, pre-
pays, and fixed assets.
2. What are your total company assets?
3. What are your company liabilities? Include all payables, taxes, notes, bonds,
and other debts.
4. What are your total company liabilities?
5. What is the equity of your company (total assets minus total liabilities)?
Summary
A business plan is not finished until you can show you have a firm plan for how
your new venture can break even in the short term and become profitable over time.
The Financial Plan section of your plan is written last, after you’ve made your mar-
keting, selling, or production plans.
There are four comprehensive reports that need to include in your financial plan.
They are the three- to five-year pro forma, income statement, cash flow statement,
and balance sheet. Don’t attempt to devise your own method of presenting your
financials. Stick to the tried and true, as described in this chapter.
The next chapter will describe how to create your Executive Summary.
CHAPTER 13 Writing Your Financial Plan
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