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1. FINANCIAL
PLAN

2. • Financial plan includes the financial projections of the new ventures.
• First, it must provide a summary of the projected sales, the cost of goods sold, and
general and administrative expenses of the business, at least for the first year and
typically for three years.
• Second anticipate the amount and timing of expected cash inflows and outflows
over period of several years
• Third provide a summary of assets the business will own, its projected liabilities and
potential retained earnings.

3. Preparing Financial Projection
The entrepreneur must make reasonable assumptions about revenues, cost and
expenses.

5. Projected Income Statement
The sales and operating budget illustrated will
then be transferred to the projected income
statement , which summarizes the profit ( or loss ) of
the company expect to generate within the year

8. Cash flow
After projecting income, the entrepreneur should also anticipate
the cash flow and outflows.

10. Projected Balance sheet
This can be done by preparing a projected balance sheet which
summarizes the assets, liabilities and net worth of the business