IndexHow to Write the Financial SectionSales ForecastExpense BudgetFinancial StatementIncome ProjectionManagement of Assets and LiabilitiesBreak-Even AnalysisHow to Use the Financial SectionConclusionIt is very important to outline a company's growth strategy in a business plan. However, having the numbers to support the plan makes the entire strategy complete. The description of what you intend to do and how you intend to do it in the future is what is called a business plan. However, the plan is conceptual until the numbers and terms are filled out. The business plan will never mean anything if the business can never be justified with the use of good figures. This is done in the financial section of the business plan. Making a financial forecast is one of the greatest things you can do as it helps you direct your business and if you have any hope of winning over future investors in your business in the future. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay How to Write the Financial Section Sales Forecast Sales forecast is the initial step. It is essential to set a projection on a spreadsheet for a three-year period. There should be a separate section containing several sales rows and other columns indicating sales for each year to be filled quarterly or semi-annually. It is essential to project sales on different blocks, each block indicates price, unit sales, unit product and sales, unit cost and the last block containing unit product and unit cost. Cost of sales is important because you can calculate gross margin. Spending Budget It is also essential to create a spending budget that helps you understand how much it will cost to make your projected sales. It is essential to understand the difference between variable costs and fixed costs because lower risk can always be expected from lower fixed costs. Cash Flow Statement It is also critical to develop a cash flow statement to establish the cash flow in and out of the investment. It is therefore essential to have a cash flow projected and spread over a 12 month period. It is also crucial to understand that when compiling cash flow projections, you need to ensure that a realistic ratio is chosen between the number of invoices paid in a month. Income Projection Income projection is also necessary as it indicates profit and loss statements. Contains details of the business forecast for the next 3 years. In this case the numbers used in the financial statement, expense projection and sales forecast should be used. Management of assets and liabilities Assets and liabilities should be managed. This creates the need for a budget estimate. This is because there are additional assets that are not listed in the profit and loss statement that you need to consider to make a projection of the business at the end of the business year. Breakeven Analysis Breakeven analysis also needs to be done to indicate the point at which the company's expenses match the volume of company services or sales. The analysis is supported by the projection carried out for the three years. How to use the financial section A business plan should always be used as a tool for managing the business rather than using it as an initial plan and then forgetting it in the future. It is essential that executives meet at least once a month and compare actual profit and loss figures with projection figures. The comparisons should then be used to make revisions in future projections. It should be.