Business Pro Forma
Financial Plan. Show me the Money? What are your business plan pro forma financial statements including Balance Sheets, Income Statements, Revenue projections, Wages, Operating Expenses, Start-up Funds, Break Even analysis, Ratios, Budgets, and Cash Flow statements for the first 3 years.
- For the Start-up spreadsheet, the Owners (Cash Injection) Equity is $200K, and Total Req’d Funds must equal Total Sources of Funds. Use the Cash on Hand as the balancing figure.
- Balance Sheets are for a specific date, e.g. December 31, 2017, unlike Income Statements, which are for a specific time period (2017).
- Business plans use pro forma financial statements to create an accurate projection of the future cash flow and financial performance of the business. They do not follow General Accepted Accounting Principals, GAAP, but must avoid misrepresentation.
- Make sure you consider the ramp-up period to build your sales. A business rarely opens with a full load of business.
- Your financials should identify what the return on investment is and how the investors will be repaid.