Posted by: bevmeldrum | October 31, 2007

Common Questions About Business Plans – How Do I Make The Numbers Mean Something?

Make sure that all your numbers are explained in the words section of your Business Plan.

The way we put together the words section and the financial sections of the Business Plan are two completely different things. Although it may not feel like it they are very clearly linked, one way to approach this is to think of the words section of your Business Plan explaining all of your financial information.

If you imagine a funder or lender picking up your business plan – one of the first things they will often do is go straight for the financial reports at the back. They want to see how the money works out.

Then they will start looking through the words sections – they want to understand how you have arrived at the figures they have just been looking at.

They will also be keeping an eye out for any inconsistencies – if in the words sections of your Business Plan you talked about needing to employ two Support Workers but you budget for only one, then they will start asking questions.

Once you have finished your Business Plan – go back over it. Start with the financial reports. Is every number explained in the words sections of your Business Plan? If it isn’t clear, add in more detail until you have given yourself the opportunity to explain all of your decisions.

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