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THE FINANCE SECTION OF THE PLAN
Virtually everything in your of equal importance, a note we would strongly reco-
businnes plan will have an of when you will be mmend that you do
impact on your income and expected to pay for these complete a profit and loss
expenses and it is vital to items. forecast, and cashflow
work out what the financial forecast, even if many of
implica-tions of your plans the lines on the blank
are. forms we have in –
If you already know included within this pack
the level of orders you will remain empty.
get, then details of these
The way in which
should be shown in your
you will be charged, and
plan.
the way in which you will
If not, you will need
charge your own
to make realistic forecasts. What is a profit and loss
customers, taking account
You will need to forecast and a cashflow
of discounts, bonuses,
work out what equipment forecast?
credit, and the like, is
you will need to get started, A profit and loss forecast
known as your “terms of
the cost of items, and the is a projection of what
trade”. The terms you are
cost of replacing them. sales you think you will
offered by suppliers may
achieve, what cost you
vary from one to another –
In order to run your will incur in achieving
and you may plan to offer
business you may need to those sales and hence
different customers
purchase materials, both what profit you will earn.
different terms according
initi-ally and throughout the A cashflow fore-
to their importance and
year. Details of the various cast, as the name implies,
value to you.
items you envisage forecasts changes in the
But whatever size
purchasing are needed, cash resources available
or type of business you are
together with their cost and, to the business, i.e. the
starting – or expanding –
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