29. Summary of Financial Needs Section

By Roger Bryan

If your main goal on building this business plan is to seek investment, this section is by far the most significant one. You will need to create this in a certain way to make your company interesting, because you don’t want to miss any potential investors.

First, you need to summary the financial situation of your company, using mostly the pro-forma cash-flow and the banking information. Investors need to understand exactly where your company stands in this matter.

Then, they will need to know how much money you need, how it will be used, what the ROI (return on investment) is and when they will receive. Once again, the pro-forma cash-flow will give you this information, if it is well made, but not all of them. You will need to calculate the ROI.

Some professional investors want to know also if you have an exit plan in case the shares go public. You should provide this information too.

The share of stocks each amount of money will buy should also be written down here.

If you are seeking for loans, don’t dismiss this information from your business plan. It will be needed also to calculate your risk and, consequently, the loan rates.

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