Liabilities Everything the enterprises has to pay to others; in other words the debts, including the net worth (capital) which is the money that the enterprise has to pay back to the owners.
Pro-forma Balance sheet You have to clearly display in your Business Plan the projection of your business value by displaying where the capital comes from and how it will be used. Your balance sheet and projections must be as brief as possible, but with the critical information, analyzed. Do not forget to calculate and subtract depreciation of fixed assets for every consecutive year, so that only the net value of assets is present. Under the title “other long term obligations” you put (and explain) any investment related future payments, like licenses and not any payment connected to your sales or supplies. Other Liabilities include; taxes, VAT and wages, to be paid in the following year. These obligations must comply with your cash flow statement. Undistributed profits are a debt of the enterprise to the owners and they are usually paid within the next year. They must comply with your income Statement.
Pro-forma Income Statement The income (profit and loss) statement shows your business financial activity over a period of time, usually your tax year. In contrast to the balance sheet, which shows a picture of your business at a given moment. This statement can be likened to a moving picture, which shows what has happened in your business over a period of time. The income statement is an excellent tool for assessing your business. You will be able to pick out weaknesses in your operation and plan ways to run your business more effectively and thereby increase your profits.
Cash Flow Forecasts When you think about business you are always thinking prospective profits. Your business is not only projected to increase your wealth, but also to provide you with income, which is your share of the profits in cash. Start thinking that profits are not equal to income. Profits may be an increment of your inventory, but can you pay your family expenditure with an increment, for example, of raw material? Can you pay the bills of your enterprise, the wages, the loans, with goods in your warehouse and accounts receivable (money that your customers will pay later)? You know that until you collect the payment from your customers, your suppliers must have been paid, even if you sell immediately what you have bought. The readers / audience of your Business Plan, know it as well. They expect
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