Apply for a Start Up Loan? The Business Plan: Finance (Part 6/6)

Finance, the numbers game

One of the critical parts of any business plan is the numbers, if they don't add up to a profit then there is a critical problem. It has been known for people assessing a business plan to move straight to the numbers section, so be warned that this area needs plenty of time spent on it.

What to include

All financial considerations in the business plan should include:

• Best case sales/ worst case sales
• Average spend per customer
• Start- up adjustment
• Seasonality
• Payment terms
• Funding package

 All of this will be demonstrated through the production of some key documents, which are:

• The cash flow- it tells you the flow of cash in and out of your business
• The Profit and Loss- it tells you if you are making a profit
• The Balance Sheet- it tells you where the money is in your business at a given moment in time  

There are a number of places that start-ups can look for financial assistance, try these as a starting point.

Start Up Loans
Banking, start up account 
Start Up Information
Scottish Institute for Enterprise

Lastly

You will also need to consider other information such as;

• Premises- location, lease, purchase, costs, business rates
• Assets- vehicles, equipment and other assets required to trade
• Inventory- list of what you own (market value)
• Shopping list- list of what you need to buy for the business (get quotes)
• Legal- issues, insurances, compliances etc.
• CV's of management and key employees may be provided (Appendices)
• Market Research- any surveys conducted (Appendices)
• Letters of intent- any correspondence between customers and suppliers (Appendices)
• Property Lease- copy for any premises to be rented (Appendices)
• Highly technical info- for example product specifications and blueprints (Appendices)

And now its time to give it a go and create your first business plan with the help of this business plan template: Business Plan Template  (Good Luck!)

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