Finance Applications
Businesses, ranging from fledgling to experienced ventures, sometimes require substantial financing at various times during the business cycle.
A professionally prepared business plan can make a major difference in the success or failure of a business, particularly one which has yet to attain a track record, in securing that financing.
A comprehensive business plan provides prospective financiers with the substantial information required before bankrolling a venture can even be considered.
The report must clearly indicate the nature of the business, the industry within which it operates, and provide an initial indication of marketing strategy by outlining the client base for whom service is to be provided.
Although prospective financiers will invariably meet with the management team responsible for charting the venture's course and making strategic decisions, a well written report outlining their business philosophy, industry and entrepreneurial experience, could be the key to that meeting's success.
The level of financial commitment by major shareholders of public companies is also presented in the report.
A good business proposal provides an historical summary of the environment within which the business operates, as a prelude to describing the industry in context of today's current trends and developments, including major products and competitors.
Detailed financial projections, typically prepared by an accounting firm, are then provided which take into account balance sheet items, including fixed assets such as leasehold improvements, equipment, and automobiles.
Budgeting and cash flow projections are also used to provide an estimate of income over an initial period of time, typically up to five years, for a large company with substantial assets.
If the company is established, a history of proven earnings, if applicable, is also presented in the business plan.
Note to users: All information provided is of a general nature. Although we endeavour to ensure its accuracy and timeliness, no one should act upon it without appropriate professional advice after a thorough examination of the facts of the particular situation.