It costs money to start a business. The financial section of your business plan should state how much funding you'll require and where this will come from. You'll also need to estimate how profitable your business will be. A complete financial plan includes the following estimates or budgets:
- Investment budget – What would I need now to start my business tomorrow?
- Financial budget – How am I going to finance my business and under what terms and conditions?
- Operating budget – How much profit do I expect to make in the first three years? What turnover, procurement and expenditure do I expect?
- Cash flow budget – What transactions take place on my bank account every month? Will I be able to manage my cash flow properly?
- Personal expense budget – How much money do I need to cover my personal living expenses?
Read more about creating a financial plan.