Business Plan Basics

 

Sample Business Forms

Writing a business Plan

Writing a business plan (PDF File)

 

Writing a business plan is an important early step in starting or expanding a business. A business plan is important for a number of reasons. It assists the business owner as well as institutional and individual investors by organizing information that describes the business and demonstrates how an investment or loan will further the company's goals. 

A business plan provides the information that must be presented to a bank or other investor before a credit decision is made. Since most businesses can only start-up or expand through at least some borrowed dollars, the presentation of reliable and complete information in a business plan is essential. 

 

About the Balance Sheet

Sample Balance Sheet (PDF file)

 

The Balance Sheet is a measure of the solvency of the business, and the degree of the owner's investment which, in the last analysis, is the "cushion" that protects creditors. Illustrated below is a typical balance sheet format (applicable to any type of business). 

 

About the Income Statement

Sample Income Statement (PDF File)

 

The Income Statement (Profit and Loss) records all income and expenses of the business during a specified time period, and is the accepted method of determining profits and losses. The Internal Revenue Service requires all businesses to submit this report at the end of each year.