Usually, banks and venture capital firms make the existence of a viable business plan a prerequisite to the investment of funds in a business. It should also provide at least an overview of the industry of which the business will be a part, and how it will distinguish itself from its potential competitors. Financial Projections A complete business plan must also include a set of financial projections for the business. These forward-looking projected financial statements are often called pro-forma financial statements or simply the " pro-formas.
Defining Accounts Different types of businesses will have different accounts. For example, to report the cost of goods sold a manufacturing business will have accounts for its various manufacturing costs whereas a retailer will have accounts for the purchase of its stock merchandise.
Many industry associations publish recommended charts of accounts for their respective industries in order to establish a consistent standard of comparison among firms in their industry. Accounting software packages often come with a selection of predefined account charts for various types of businesses.
There is a trade-off between simplicity and the ability to make historical comparisons. Initially keeping the number of accounts to a minimum has the advantage of making the accounting system simple.
Starting with a small number of accounts, as certain accounts acquired significant balances they would be split into smaller, more specific accounts. However, following this strategy makes it more difficult to generate consistent historical comparisons.
For example, if the accounting system is set up with a miscellaneous expense account that later is broken into more detailed accounts, it then would be difficult to compare those detailed expenses with past expenses of the same type. In this respect, there is an advantage in organizing the chart of accounts with a higher initial level of detail.
Some accounts must be included due to tax reporting requirements. For example, in the U. One should check the appropriate tax regulations and generate a complete list of such required accounts.
Other accounts should be set up according to vendor. If the business has more than one checking account, for example, the chart of accounts might include an account for each of them.
Account Order Balance sheet accounts tend to follow a standard that lists the most liquid assets first. Revenue and expense accounts tend to follow the standard of first listing the items most closely related to the operations of the business.
For example, sales would be listed before non-operating income. In some cases, part or all of the expense accounts simply are listed in alphabetical order.
Sample Chart of Accounts The following is an example of some of the accounts that might be included in a chart of accounts. Sample Chart of Accounts.Conversely, always keep in mind that the plan is not a slide presentation, and too many graphs and charts may position the company as one that is too lazy to complete the process of developing a formal business plan.
To summarize, the amount of charts and graphs used in the business plan must reflect the audience for the plan; an audience that is usually time and energy constrained.
Two charts show how your tax bracket could change under congressional tax plans, both for taxpayers who are single and for those who are filing jointly. Business Continuity Plan Overview Existing BC Plan Layout BCM Team Document Page: 1 Layout of Proposed BCCM Template Business Continuity Plan.
Busines Plan Template | grupobittia.com 4 10 Product or service offering Describe your product or service offering in detail. What unique feature does your product or service. The business plan is the key ingredient for a successful business and is often ignored. This session shows you how to create an individualized business plan, and provides the tools to make it easy.
The primary value of your business plan will be to create a written outline that evaluates all aspects. Flowchart for Creating a Business Plan No Yes Yes StartMarketing Decide on a product or service you think might have potential as a business. It does not need to be.