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Friday, May 05, 2006

SMB Strategy Cast #16 - Business Plan - Financial Plan Part 2

  • May 5, 2006

  • Podcast Description – Cover business strategy topics that pertain to startup, small and medium business.

  • In this episode - This is the second episode in a 2 part series on the FINANCIAL PLAN.

  • Will cover what is included in the Financial Plan and give tips for creating the Financial Plan
  • .
  • Using Microsoft Excel or another spreedsheet program to set up the financial statements

  • In general, create forecasted financial plans with 3 Years – 1st year by Month, 2nd & 3rd year by quarter.

  • I like to build the Excel with 6 sheets, 3 are for internal discussions: Assumptions, Startup Costs, and Projections. The other three sheets are the financials that will get copied into the business plan: P&L, Balance Sheet, Cash Flow.
  • Assumptions – Big Picture Text to set the reader’s mindset – Example: Revenue in the first year will be $2 million and grow 10% per year.
  • Startup Costs – What is needed to get the business up and running or get a product into production? Examples: Equipment, Real Estate, Salaries, etc.
  • Projections – Detailed profit and loss by month for the 3 years. On the P&L you show revenue, on the Projection you break down the revenue into its major components. Example – A product company may show major products or product lines and show the sales by month and use the assumption of growth by 10% per year.
  • P&L – I actually put three statements on this sheet. Three year annual, which is just the total form the other two statements, 1st year by month, and 2nd & 3rd year by quarter. Most of the items on the P&L are just sums form the projection page.
  • Balance Sheet and Cash flow are the final two sheets. – like P&L I include three statement: 3 year annual, first year by month, and 2nd & 3rd year by quarter.

  • Podsafe Music at beginning and end of show - MSFF, “Brooklyn”. For more info on MSFF go to there page on the podsafe music network. Or, for more podsafe music go to music.podshow.com.

  • Email questions or comments to podcast@bizplanhelp.com
  • For help with your business plan, startup or strategy project, check outwww.eaglestrategygroup.com and www.bizplanhelp.com

  • Download this Episode


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