This week’s discussion is a written summary of the key financials investors would like to know before deciding to look at your business plan in more detail.
Do not copy tables from the Excel document in the discussion response.
Discuss the following and use bold headings to organize your response. You can find the numbers you need in your Excel document your completed last week (Business Plan Financials). Check the table provided in the discussion for the exact worksheet of where the information can be located. Be sure to include a brief description of your business.
The projected sales will help the investors understand your sources of revenue (product lines or service options) and your projected sales.
List your sources of revenue (specify your product lines/ service options you plan to offer) and provide the average sales per year for each product line/ service option.
You can also list milestones such as overall sales of 1 million by the end of the second year.
Clarify how many employees you currently have and plan to have in the future.
Mention the key skills and experience (very brief) of your management team. This will help your investors understand you have a competent and experienced team to grow the business.
3.Funds to Date and Funds you plan to raise
Provide a list of the funds you already have (loans, money in the bank, etc.)
Provide a list of the funds you are planning to raise from the investors. Remember, we are writing the business plan with this purpose.
4.Use of Funds
Provide a list of expenses you plan to make (major expenses) with the funds you plan to raise from the investors. They would want to know what you plan to do with the money.
The break-even number will clarify how much you need to sell just to cover your expenses.
Provide just the average monthly break-even number for years 1 and 2.
The projected profits will indicate when the company will become profitable and how much these profits are expected to be.
Specify the estimated yearly profit estimates for the first and second year.