Projected Financial Statements: These statements are usually helpful, but not necessary. You will develop and describe your strategies for the business throughout your Business Plan. In the financial section, you will need to estimate the financial impact of those strategies by developing projected Income Statements, Balance Sheets, and Cash Flow Statements. It is usually recommended that these projected statements be on a monthly basis for at least the first twelve months or until the business is projected to be profitable and stable. Activity displayed beyond the monthly detail may be in summary form (such as quarterly or annually). The forecast period for most business plans is two to four years.
Here is the way I would encourage you to set up a growth business plan: • Do some dreaming about what you would like your lifestyle to be • By dreaming decide on an average income you would like to have over the next few years • Decide how many years out you would like your plan to cover • Decide how much profit you would like for your business to generate above the income you want for yourself. • Set up a profit and loss statement of your existing business or your proposed business • With the right business knowledge and a profit and loss statement you can actually use that data to see what your business would need to do for you to give you that income and profit • Even better you can determine what size market you would need and even determine whether your market would support your business presently and in the future.