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Financial Plan

Fundamental requirements of financial planning are:

- Income Statement: Entrance specifying the items and costs with its underlying assumptions (It is very important to justify the assumptions of growth of income and expenditure made, a good indicator is the comparison and justification of these same parameters in accordance with market growth.
- Projected cash flow, specifying when reach breakeven (after generating positive cash flow).
- Balance.
- Estimated 3-5 years, at least one year after the breakeven.
- Valuation of the company.
- Funding needs.

The financial plan should be detailed for the first two years (monthly or quarterly) and annually thereafter. All figures must be based on reasonable assumptions: only the major must be reasoned in the Business Plan.

6. Management team and organization

Management Team

This section is the second in which investors are usually set, then the executive summary, want to know if the management team is Capable of carrying out the business: “I invest in people, NOT ideas.”

A strong management team must have a common vision and complementary skills.

This chapter should contain:

- Members of the management team with your profile: education, experience, success in the workplace.
- Experience or skills of the management team necessary to carry out the project: what skills / experiences have team members that make possible the implementation and management of new business. How does your profile with the changing business needs.
- Capacities missing: detailing how and by whom they think meet.
- Mission / objectives of the management team to fit the business: what is their true motivation.

Possibility Related Posts:

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• The Model Structure of A Business Plan I