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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.
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.
- Winter '09