The Art, Science, and Craft of Decision-Making

Financial Plan

Current Financing

• Key investors or owners
• Angels, friends, and family
• Existing loans and liabilities
  • Terms, obligations
    
    

• Funding Needs

Funding Plan

• IMF
• World Bank
  
  

• Financial History

Financial Forecasts

• Sometimes called pro formas
  • Balance sheet
  • Income statement
  • Cash flow statement
• 1-3-5-7 year projections (depends on length of project)
  • For loans, repayment period determines length of projections, i.e. a six month loan doesn't need seven year forecasts
  • For investments point at which returns stabilize (terminal value) determines length of forecast
• Annual, quarterly, and monthly versions should be provided
• Graphs of key values often helpful: gross revenue, EBITDA, NPV, etc.
• Financial portions of the marketing, asset development, and operations are often placed in this section rather than in the section discussing the plan. They are viewed as elaboration on the various line items in the pro-formas.
  
  

• Valuation