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B7. Financials

DIRECTIONS: In this section you will predict perhaps the most exciting part of your business- the money you will make!  Investors like to see prospective financial data statements so they will have a better understanding how and when they will be paid back.  Usually, investors like to see forecasted income statements for the next five years, but in our case, lets plan for the next one year.

Since we will only estimate financials for one year, and many of our ongoing expenses are already in our startup budget, we are keeping things relatively simple in this section. First you will need to think about expenses, or the costs of doing business for the year. Include:
  • Material Costs
  • Advertising Costs
  • Taxes (20% of your income)
  • Wages
Then, estimate your income based on sales of your product or service.

Finally, do some math:
  • Income - Liabilities = Profit
With this information, combined with all of the other information in your business plan, investors will be able to decide wether to invest in your business!

EXAMPLE:

Get Moving Financials
 Item Expenses Income
 Organic Cotton T-Shirts (1000 at $8/Each) $8000 
 Printing Cost ($1/Shirt) $1000 
 Packaging ($.30/Shirt) $300 
 Advertising ($500/Month) $6000 
 Wages $3000 
 Shirt Sales ($25/Shirt)  $25,000
 Taxes $5000 
 Totals: -$24,300+ $25,000
 Total Profit/Loss, 1st year:  +$700

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