Business Plan - Financial Projections

Many analysts argue that this section is the most consequential portion of a business plan, particularly in terms of securing funding. In short, lenders and investors want to know what kind of revenues a business will generate and how soon it will be profitable. While many dot-com investors in the late 1990s appeared willing to wait several years for profitability, an October 2001 article in Inc. stated "the business plan that impresses investors today is a very different beast from the one that pulled in the dough two short years ago; the path to profitability has to be both clear and short—a year to 18 months." Detailed profit and loss statements, balance sheets, and cash flow projections for the first five years of operations are usually included in an appendix.