You are about to write the famous financial part of the business plan. Exercise is dreaded by many entrepreneurs. For what ? You may be afraid of not knowing accounting or financial terms, a rough mastery of excel or even the fear of being clumsy with numbers. However, the main errors that we encounter are often errors of common sense. The form errors the quantified part of the business plan is often complicated to read, there is so much data that interacts with each other. It is above all a question of facilitating the work of reading your financial model and your financial part. It is not up to your interlocutor to make an effort to understand.
We Often Encounter Excel Files
Incomprehensible tables on which all the information is grouped together on a single tab. a basic rule must be respected: you need different tabs for each part with at least one tab: for assumptions, which explains the main formulas, for the income statement, for the balance sheet, financing Electronic, Electrical Manufacturers Email List needs. For cash flow, we can also distinguish between two types of hypotheses: those that the entrepreneur enters directly by hand. It is then necessary to put them in a certain color and in italics to recognize them well. The hypotheses resulting from an automatic calculation, which must appear in another color, possibly in bold. They are not questionable unless you have done your spreadsheet incorrectly.
Data and Assumptions that Fall from
The sky another classic form error is forgetting to justify assumptions. Indeed, the funder knows that your financial model is wrong. For what ? Because no one can predict the future! Above all, he wants to check the consistency of your words and your reasoning as well as the professionalism Asia Email List of your approach (and that you have not made any errors in your calculations). He seeks reassurance and the ability to justify hypotheses serves this mission. Therefore, the most important thing is not so much the result but the justification of the hypotheses. You must therefore, in your business plan and in your model, justify each hypothesis entered by hand, indicating why you have chosen such a figure, and what are your sources.