Sample Financial Plan For Business Plan

Sample Financial Plan For Business Plan-2
This initial amount of capital generally comes from personal assets of the owner(s), family members, or friends.It may be the case that the owners use person debt, such as credit cards, home loans, etc., to fund the startup.This information serves the dual purpose of satisfying the requirements of lenders and investors.

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While this may be necessary, it pulls the entrepreneur from his/her primary tasks – planning and organizing resources to develop the business.You will need to explain all of your expenses, the amounts, the necessity of the expense, etc.This will be important in obtaining a business loan or justifying the required capital contribution and ownership interest of each owner.In other cases friends and family members either invest the necessary cash or make a loan to the entrepreneur.Regardless of the source, seed capital is essential to starting the business.The financials are so comprehensive, most potential investors read the business summary, the founder bios, and the financials to determine whether they are interested in the business.These statements constitute the projected financial future of your business.Another approach would be to allocate a set additional amount of money entitled contingencies.This should generally be 15-25 percent of the total startup expenses.You will need to itemize your expenses in a readily usable and modifiable format.I recommend using excel in the beginning and later moving to a customized accounting system (like intuit or quickbooks).

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