Financial plans show the true status of a business. Anyone seeking project funding must have a good financial picture if they hope to obtain funds from any person or entity.
A financial plan details the company’s revenue and profitability ratio. A short glance tells any potential project funding decision maker if the business is a good risk. The plan shows the capital flow and needs of the business. Expected future earnings are listed and explained. The plan includes a break-even analysis, cash flow, balance sheets, and forecasts for the future. Everything is broken down into a monthly amount and extended out to five years.
“I advise clients to have an accountant or other financial professional prepare their financial statements. The financial plan makes or breaks the funding package,” says Angel Bischak, President of Angels Wealth Lenders.
