The financial summary of a business plan normally starts with the introduction to the financial plan. The format and structure of the introduction is purely left to the drawer of the business plan. The introduction basically gives the reader a basic outline to what is contained in the section.
This is the last part of the financial section of the business plan. It summary every idea, assumption, and thought-process es that were used to create the forecasted financial statements. It is usually written in the period of three years of the forecast.
These notes are vital to the readers of the business plan as they give the detailed information that aids them to understand the forecasts and projections. The notes should always come after the financial statements and analyses. It beats logic to have them before the statements and analysis. It also serves to avoid confusion and incomprehension by readers.
The notes should also have labels with specific reference to the item being described. For example:
Net income note to the financial statements
Accounts payable note to the financial statements
Accounts receivable note to the financial statements
Retained earnings note to the financial statements
The positive value that notes to the financial statements in the financial section have is that they make readers of the business plan understand your projections. Hence, the investors and financiers are more certain of your business. Certainty is a motivating factor for financiers and investors to invest in a business.
The financial section of a business plan benefits not only the investors and financiers but also the business owner. It aids them to understand their business better. It is also a vital aid in running the business. Most writers prefer the paper format when writing the financial section and in extension the whole business plan.
The credibility of the financial section will purely rely on how realistic you are when writing it. A good way of doing this is by breaking the figures into components such that they can be analysis on an individual basis.
