Financial Capability & Appendix

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Strong financial management is key to business success. Investors and lenders need clear financial details to assess your business’s potential.

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Key Financial Statements:

• Income Statement: Shows revenue (earnings) and expenses over time, indicating profit or loss.

• Balance Sheet: Lists assets (what you own) and liabilities (what you owe) to determine your financial position.

• Cash Flow Statement: Tracks money coming in and going out to ensure you can cover expenses.

• Sales Forecast: Estimates future revenue from sales.

• Expense Budget: Plans for costs like salaries, marketing, and taxes.

Funding Request:

• Clearly state how much money you need and how it will be used (e.g., inventory, marketing, salaries).

• Define funding terms e.g. loan interest rates

• Mention any other funding sources, such as grants.

Providing detailed financials and a clear funding request increases the chances of securing investment or loans.

 

Appendix:

The appendix contains supporting documents like market research, product details, credit histories, or legal agreements. While useful, your business plan should be complete and understandable without it.