The next illustration is a simple example start up

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Unformatted text preview: tion is the needs of your reader. This isn’t a history assignment. Give the reader of the business plan the background information he or she needs to understand your business. The following illustration shows a sample listing of recent financial results for an ongoing company. Generally three years is good enough. You should have these numbers as part of your standard business accounting. You can include them in the body of your plan, or as an appendix. For your financial analysis as an ongoing company, you will want to make sure you have some very important highlights of your company’s past financial performance, as shown in the next table. 6.4 HURDLE: THE BOOK ON BUSINESS PLANNING PAST PERFORMANCE TABLE Important past performance items can be typed into the past performance worksheet. They are used for comparing past performance to projected future, and to establish starting balances for your business plan financials. CHAPTER 6: DESCRIBE YOUR COMPANY 6.5 Baseline Numbers For Start-up Companies While we’re focusing on the company description, let’s establish some starting numbers that form the basis of your cash flow and balance sheet in the following sections. For new companies, your plan determines the starting balances for the future. Start-up Costs for Start-up Companies The start-up company should include a Start-Up table instead of the Past Performance table. The next illustration is a simple example. START-UP REQUIREMENTS TABLE Use the start-up requirements worksheet to plan your initial financing. Start-up Expenses The first portion of the sample start-up table estimates start-up expenses. Make sure, first of all, that you understand expenses, which are different from assets. You can check with the glossary for a detailed definition of expenses, but basically your start-up expenses are only those expenses incurred before the start of the plan. If they come after the start of the plan, they belong in the profit and loss table in the appropriate month. In the example, the total for start-up expenses is $18,350. Don’t confuse expenses and as...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.

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