Expanded Outline Continued

Note for Users: This project and its content were completed in 1997. At this time, there are no existing plans to update the materials.

14. Financial Data:

A. Source and applications of funds statement; from where are you getting money? What will you spend the money      on? See Appendix C.

B. Capital equipment list

C. Current balance sheet and operating statement (Less than 90 days old)

D. Break-even analysis E. Profit and loss

- Determine average customer sales per year by multiplying how many purchases the average customer will    make during a year, by, how much the average customer will spend for each purchase. Use U.S. Census    Data.
- Determine the annual sales volume by multiplying the number of customers and the average amount each    customer will spend per year. (VEM, pg. 35) Use U.S. Census Data.
- Detail by month, first year
- Detail by quarter, second year
- Notes of explanations and assumptions

F. Cash flow projections (SBA)

Definition: A cash flow projection is a forecast of cash funds that a business anticipates receiving and disbursing over a specified period, and the anticipated cash position at specific times.
Objective: The purpose of preparing a cash flow projection is to determine deficiencies or excesses in cash from that which are necessary to operate the business during the time for which the projection is prepared. The objective is to develop a plan that, if followed, will provide a well-managed flow of cash.
Form: The cash flow projection form provides a systematic method of recording estimates of cash receipts and expenditures, which can be compared with actual receipts and expenditures as they become known. (Source: Monthly Cash Flow Projection, Form Approval: OMB No. 3245-0019) A Commercial Outline Package including this form can be obtained through any financial lending institution. (MBDP)

- Detail by month, first year
- Detail by quarter, second year
- Notes of explanations and assumptions

G. Projected balance sheet

- Notes of explanations and assumptions.

H. Pricing Breakdown

I. Personal financial statement for all principals (SBA)

- Assets list and total assets
- Liabilities list and total liabilities
- Total assets minus total liabilities to determine net worth (VEM, pg. 11)

For an existing business:

J. Profit and loss statements

K. Balance sheets and/or tax returns for past three years

15. Supporting Documents:

A. Personal resumes for all principals

B. Letters of reference

C. Letters of intent from prospective suppliers or customers

D. Copies of all leases, contracts or agreements, deeds, or other legal documents

E. Any other information that might help your cause or answer potential questions (SBA)

Appendix A is a business plan form.

Resources and References
Appendix A: Business Plan Form
Appendix B: Competitor Information Forms
Appendix C: Sources and Applications for Funding Form
Table of Contents