Page 166 - Business Plans that Work A Guide for Small Business

Financial Plan: Telling Your Story in Numbers • 155

Jan Feb Mar Apr May Jun Semester Year 2 Year 3 Year 4 Year 5
$237,873 ($53,879) ($92,528) ($81,192) $273,298 ($124,588) $158,985 $98,293 $741,905 $1,517,209 $2,151,099
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$5,022) ($5,059) ($5,097) ($5,136) ($5,174) ($5,213) ($30,702) ($60,057) ($65,691) ($71,853) ($46,450)
($5,022) ($5,059) ($5,097) ($5,136) ($5,174) ($5,213) ($30,702) ($60,057) ($65,691) ($71,853) ($46,450)
$232,852 ($58,939) ($97,625) ($86,327) $268,124 ($129,801) $128,283 $38,236 $676,214 $1,445,356 $2,104,649
$48,125 $280,977 $222,038 $124,413 $38,085 $306,209 $48,125 $138,173 $176,408 $852,623 $2,297,979
$280,977 $222,038 $124,413 $38,085 $306,209 $176,408 $176,408 $176,408 $852,623 $2,297,979 $4,402,628

Appendices: Adding Bells and Whistles

The appendices can include anything that you think adds further valida-
tion to your concept but doesn’t fit or is too large to insert in the main parts
of the plan. Common inclusions would be one-page résumés of key team
members, articles that feature your venture, technical specifications, and
so forth. Lazybones included a brochure and other marketing materials
that it uses to secure customers. Due to space constraints, these appendices
aren’t included within this book.

Chapter Summary

Financial projections are an art. You can never precisely predict the fu-
ture, but you need to anticipate what can happen. Financial projections
help you gauge the attractiveness of the opportunity. What is the profit
potential? How might the company grow? What does this mean for you,
your team, your employees, and your investors? In summary, financial
projections are the numbers equivalent of the story you have articulated
in the rest of the plan. Just like the written plan, the financial statements
need revisiting and refining as you learn more about the opportunity. We
believe it is imperative for you, the lead entrepreneur, to own the num-
bers. If you rely on others, you won’t be able to make strong decisions on
how to proceed or convincingly raise money that you need to get started.
So, although building and understanding financial statements can require
effort for those of you who are less proficient in numbers, the time you
take to familiarize yourself with the financials is time well spent.