Enter a number in the white box to show the expected annual price increase of your products to enable the spreadsheet to calculate income in future years.
If you are unsure what to put here, increasing your product price in line with inflation is a good starting point.
In addition, these statements help investors determine the plan's feasibility and its potential profitability.
It is for these reasons that many refer the financial section as the "heart of a business plan". (Please note, the financial statements and analysis for two of the examples below; namely "" provide forecasted financial statements for a two year period.
The Financial Section, in many cases, is the most scrutinized section of your business plan.
In short, it provides details on how potentially profitable the business will be, how much debt and equity capital is required for the business venture, and when debts are scheduled to be repaid to investors.In addition, this section includes your financial statement forecasts, and the assumptions made when creating your financial projections.The Financial Section of your business plan relies on Forecasted Financial Statements.Simply use the white boxes to enter the number of units you expect to sell, and the price you expect to sell them for, and the spreadsheet will calculate the total revenue for each product for the year.If you want to give your products names, simply type over the words "Product 1", "Product 2" etc.The profit and loss assumptions, along with income, are automatically calculated using information entered in the model inputs sheet.You may have, or be expecting some income in addition to your operating income.Use the Model Inputs sheet to enter information about your business that will be used to model results seen on the other pages.The forecasted revenue section allows you to estimate your revenue for 4 different products.To use this section, simply fill in the three white boxes representing the amount of the loan, the annual interest rate and the term of the loan in months - for example, 12 for 1 year, 24 for 2 years, 36 for 3 years, 48 for 4 years, or 60 for a 5 year loan.This sheet calculates your profit and loss for each year over a 5 year period.