Purpose of financial plan in business plan

No matter how passionate and committed you are to your business, you can't succeed if the money's not there. If sales are slow, you still need enough cash on hand to pay utilities, vendors and employees. Knowing how much money you can afford to spend helps you budget. The importance of financial planning in business is that without it, your business may not survive. Financial planning shouldn't wait until your business is up and running.
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Business Plan Section 7: Financial Information

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The Importance of Financial Planning for a Business | Bizfluent

After reading this article you will learn about the Financial Plan:- 1. Meaning of Financial Plan 2. Objectives of Financial Plan 3. Characteristics 4. A financial plan is a statement estimating the amount of capital and determining its composition. The quantum of funds needed will depend upon the assets requirements of the business.
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What is the Importance of a Business Plan?

It discusses the competitive situation and what effort and funding are needed to bring the product or service to market. Business plans are essential tools for startups and for periodic reviews by established companies. This two- or three-page section should contain the most important information about the company. To ensure that it includes the necessary information, the executive summary should be written last.
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The financial analysis section of a business plan should contain the data for financing your business for the present, what will be needed for future growth, and an estimation of your operating expenses. The financial analysis section of your business plan may be the most challenging for you to complete on your own, but it also could be the deal-maker or deal-breaker when you are searching for funding. Because of the structured, in-depth financial data required for this section, you should consult your accountant or other trusted and qualified financial professional before writing this section.
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