Write financial summary business plan

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How to Write a Financial Plan for Your Small Business — 2021 Guide

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Executive Summary of the Business Plan

A financial plan is the heart of any startup or existing business. It is a culmination of the income statement, the cash-flow projection and the company's balance sheet. The financial plan is a way to look at a business through a financial lens, which is the view most investors prefer. When preparing a financial plan, it is not mandatory that you be a mathematician, but you need to understand how the numbers affect a business. Prepare your income statement.
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The financial section of your business plan determines whether or not your business idea is viable and will be the focus of any investors who may be attracted to your business idea. The financial section is composed of four financial statements: the income statement, the cash flow projection, the balance sheet, and the statement of shareholders' equity. It also should include a brief explanation and analysis of these four statements. Think of your business expenses as two cost categories: your start-up expenses and your operating expenses.
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In this edited excerpt, the authors outline what type of information you should include in the financials section of your business plan. Astute investors look carefully at the charts, tables, formulas and spreadsheets in the financial section because they know this information is like the pulse, respiration rate and blood pressure in a human being—it shows the condition of the patient. Financial statements come in threes: income statement, balance sheet, and cash flow statement. This information is very important to business plan readers.

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