The financial section of your business plan determines whether or not your business idea is viable and will be the focus of any investors who may be attracted to your business idea. The financial section is composed of four financial statements: the income statement, the cash flow projection, the balance sheet, and the statement of shareholders' equity. It also should include a brief explanation and analysis of these four statements.
Business expenses can be categorized in two cost categories: your start-up expenses and your operating expenses. All the costs of getting your business up and running should be considered start-up expenses. These may include:
Business registration fees
Business licensing and permits
Starting inventory
Rent deposits
Down payments on a property
Down payments on equipment
Utility setup fees
Operating expenses are the costs of keeping your business running. Your list of operating expenses may include:
Salaries
Rent
Telecommunication expenses
Utilities
Raw materials
Storage
Distribution
Promotion
Loan payments
Office supplies
Maintenance
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Financial
