Financial Plan Assignment Example | Topics and Well Written Essays - 3250 words

Financial Plan - Assignment Example The essay discusses that business plan can be defined as a statement that sets forth the business goals that an individual has; the reasons that compel such an individual to believe that such goals are attainable and the steps and plans that the individual has towards that will help them attain those goals. The plan would also contain background information about the potential business and the team that will be used to help achieve the goals. The business plan has several sections the most important of which is the financial plan which details the revenue and costs forecasts of the business, the budget, the cash flows of the business, the costs requirements, the costs management plans to be applied, the sources from which the business will source its funds, the implementation plan of the business’s finances and the business’s control measures for such finances. Therefore the financial plan can be defined as a plan that shows how much revenue will be generated from the b usiness, how such revenue will allocated on various types of costs, how the surpluses shall be invested and how the deficits shall be sourced. This paper describes the type of business for which the business plan is being prepared. This section gives a brief description of what products or services the business will be offering and a brief description of the market in which the business will be operating in. The brief description of the product or service offering and the brief description of the market is used to determine the uniqueness of the business which helps it stand out from the rest of the businesses in that particular market. Finally the name of the business and the type ownership the business will assume are described in this section (McKeever 2010). i. Mission and Vision of the business The mission section of the business plan spells out the business strategy which seeks to answer the three main questions which potential customers might be having regarding the business in question. These questions are what the business does, how it does it and for whom. The vision statement on the other hand, spells what goals the entrepreneur of the business had for the business and what he/she envisioned the business to be in future (John and Harrison 2009). The mission and vision helps the customers and the general public to understand what the business is all