One of the most crucial parts of a business plan is the financial overview. In this section, you present financial projections and, if applicable, the current financial state. Present monthly and annual forecasts of sales, budget, profit and loss, income statement, balance sheet, cash-flow statement, and a breakeven analysis. The purpose of a financial overview is to show your start-up’s scalability and exit potential.
Tip: Be honest, in most cases, investors see if a start-up exaggerates the numbers. Avoid the hockey stick revenue projections.
- What are your realistic and optimistic financial projections? Recommended to include pessimistic financial projections.
- How does the forecast for sales, budget, profit and loss, income statement, cash-flow statement, balance sheet, and breakeven analysis look like?
- How much does it cost to produce your technology/product?
- What are the key metrics for progress tracking?
- If applicable: what is your progress in terms of the profitability, revenue, engagement partnerships/clients, registered/active users, traffic and etc.?