Financial Statements

The financial statements are the backbone of your business plan.

They show how profitable your business will be in the short andlong term, and should include the following:

  • The income statement details the business'scash-generating ability. It projects such items as revenue,expenses, capital (in the form of depreciation) and cost ofgoods.
  • Cash flow statement details the amount of money cominginto and going out of the business-monthly for the first year andquarterly for each year thereafter. The result is a profit or lossat the end of the period represented by each column.
  • The Balance sheet paints a picture of the business'sfinancial strength in terms of assets, liabilities and equity overa set period. You should generate a balance sheet for each yearprofiled in the development of your business.

Excerpted from Start Your Own Business: The Only Start-Up GuideYou'll Ever Need

Editor's Pick

Have More Responsibilities at Work, But No Pay Bump? Use This Script to Get the Raise You Deserve.
Black and Asian Founders Face Opposition at All Levels — Here's Why That Has to Change
Thought Leaders

5 Small Daily Habits Self-Made Millionaires Use to Grow Their Wealth

We've all seen what self-made millionaires look like on TV, but it's a lot more subtle than that. Brian Tracy researched what small daily habits these successful entrepreneurs adopted on their journey from rags to riches.

Living

Invest in Yourself: 10 Things Every Working Woman Should Do This Year

When striving for success, it is easy to forget about your mental and physical health. But without health, you cannot fully succeed. Follow these ten lifestyle strategies for success in your personal and professional life.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.