The financial analysis section of your business plan may be the most challenging for you to complete on your own, but it also could be the deal-maker or deal-breaker when you are searching for funding.
Completing a financial analysis section for a business that hasn't been started yet requires some assumptions. What you expect from the business needs to be based on detailed research and data.
Go back to the other sections of your business plan and write down any financial assumptions you made while drafting those sections.
You then can use those assumptions in your financial analysis section.
This information can be collected through annual reports of the company.
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Next to the collection of relevant data, it is important to scan the statement and look for the large movements that might occur.
When it comes to the financial analysis of your business plan, have a basic idea of what each element should include, where the data comes from, and what the numbers mean.
This stands even if you have help developing the financial analysis section because you will be the one left to explain and expand on the financial data in face-to-face situations.
In company cases, especially in graduate and under graduate courses, students are always asked to write a finance analysis paper.
So, if you are going with a personal finance analysis paper or a project finance analysis then you must understand couple of things before getting a start.