The value of a well written business plan cannot be over stated. It will benefit both management and investors in the company. The vast majority of the business plans I have reviewed come up critically short in at least two or more of these important areas, and higher number fail to address at least one key area. I think that is important that we take a look at the key sections of the business plan and what should be included.
Blog articles written by Coral Capital Partners on the topic of financial models and financial modeling. A well developed financial model is a key part of any business plan. The financial model will contain the income statement, statement of cash flows, and balance sheet, as well as the necessary supporting schedules and assumptions to allow for it to dynamically update. A well developed financial model allows for extensive testing of a multiple of scenarios to determine the financial performance of a business and its prospects. A good financial model is an important and vital tool for a business of any size, businesses that range in size from a start up to established companies.
The Importance of a Financial Model
Coral Capital Partners discusses the importance of a proper financial model, the financial statements that need to be included and the expectations of potential investors. Far too often a financial model and business plan are two (2) items that easily overlooked or dismissed by business owners or management. Coral Capital Partners believes that a financial model and a business plan are two (2) critical items that every business needs.