Template:BPB9

                  Financial Projections

  [] Use your spreadsheet processor to edit the BizPlanBuilder
  files having the file extension ".WK1" or ".WKS" if you are
  using an IBM PC or compatible, or the SYLK files in the
  Financial Projections folder if you are using an Apple
  Macintosh.

  [] These are suggestions of financial projections that
  should be organized using a spreadsheet program - Keep in
  mind that Bankers, Suppliers and Venture Capitalists are
  interested in far more than your financial estimates.

  [] Do not overdo this section. Keep numbers conservative
  and realistic, and be able to back them with actual
  orders, appropriate customer demographic information, and
  accurate production costs.

  [] If you do not have a spreadsheet program, the following
  sample statements can assist you to lay out the
  appropriate statements.

                      Start-up Costs

  [] List here the anticipated costs for initially
  establishing yourself in business.

Cash $ Initial Accounts Receivable Inventory Equipment Fixtures Rent Deposits Remodeling Utilities Legal & Professional Fees Opening Advertising & Promotion

   Total Start-Up Investment                          $

                 Use Of Funding Proceeds

  [] If the purpose of your business plan is to secure venture
  funding, then it is important to show how you will use
  your investors' money.

(Company) has developed a line of XXX products superior to all other products that exist in the market today. In order to service the identified target markets with these superior products, significant capital infusion is required.

Specifically, the required $XXX will be allocated appropriately to:

Marketing and Advertising $XXX Salaries XXX Facilities XXX Capital Equipment XXX Research and Development XXX Operational Expenses XXX Funding XXX Capital XXX

              Total       $XXX

             Income Statement (Profit & Loss)

                        Last Year      This Year Next Year
                             $000      $000      $000

Sales $

Cost of Sales

    Material
    Labor
    Overhead
    Total Cost of Sales      $

Gross Margin $ (Sales Less Cost of Sales)

Operating Expenses:

    Marketing, Selling Costs $
    Research and Development
    General & Administrative
    Total Operating Expenses $

Income (Loss) from Operations $

Interest Income (Expense) $

Income (Loss) before Taxes $

Taxes on Income $

Net Income (Loss) $

                    Cash Flow Forecast

                                    Last Year      This Year Next Year
                                    $000           $000      $000

Beginning Cash Balance $

Cash Receipts

    Collection of Receivables       $
    Interest Income

    Total Cash Receipts             $

Cash Disbursements

    Accounts Payable                $
    Payments of Other Expenses
    Income Tax Payments

    Total Cash Disbursements        $

Net Cash from (Used for) Operations $

Sale of Stock

Purchase of Equipment

Decrease (Increase) in Funds Invested

Short-term Borrowings (Repayments)

Ending Cash Balance $

                      Balance Sheet

                                  Last Year  This Year Next Year
                                  $000       $000      $000

Assets: Current Assets $

    Cash (C)
    Investments
    Accounts Receivable (R)
    Notes Receivable (N)
    Inventory
    Total Current Assets (A)      $

    Property, Plant and Equipment
    Building                      $
    Office Equipment
    Leasehold Improvements
    Less Accumulated Depreciation
    Net Property & Equipment      $
    Other Assets
    Total Assets                  $

Liabilities & Owners' Equity: Current Liabilities $

    Short-term Debt
    Accounts Payable
    Income Taxes Payable
    Accrued Liabilities
    Total Current Liabilities (TCL)$
    Long-term Debt

Owners' Equity

    Retained Earnings (Deficit)   $

Total Liabilities & Owners' Equity $

Ratios Current Ratio = A/TCL Quick Ratio = (C+R+N)/TCL

  [] Current Ratio shows your liquidity (ability to pay off
  liabilities). Quick Ratio shows your effective cash
  position.  Higher ratios indicate financial strength.

                   Break-Even Analysis

                                  Per Month   Per Month Per Month
                                  Optimistic  Realistic Pessimistic

Fixed Costs

    Rent                             $
    Salaries
    Utilities
    Insurance
    Taxes
    Depreciation
         Total Fixed Costs (TFC)     $

Variable Costs

    Supplies                         $
    Outside Labor
    Raw Materials
    Wages
    Advertising
    Maintenance
    Other Variable Costs
         Total Variable Costs (TVC) $

Number of Units (U)

Variable Cost/Unit (VCU) = TVC/U

Selling Price (SP) $

(TFC+TVC)/SP = U = number of units to sell for break-even

(TVC+TFC)/U = SP = sales price at a given unit volume for break-even �