Your business plan should include the following:

• Statement of organization and objectives.
• Identify products and services.
• Marketing plan and strategy.
• Identify competitors and how the business will successfully compete with them.
• Backup plan.
• Cash flow projections.

Completing cash flow analysis and projections

• Typically, the more detailed cash flow projections are, the better. Detailing expenditures can trigger other thoughts. Avoid lumping expenses into one category.
• Generally, a three-year projection is the minimum.
• How much cash must be generated to service any purchase money debt?
• Can the business generate a reasonable return for the owners?
• Does the cash analysis take into consideration the differences that will exist for a new owner?
• Has enough “cushion” been established for unforeseen expenditures and problems?
• Is there sufficient cash to replace obsolete and worn out equipment?
• Have all taxes been accounted for including income, payroll, property, and sales?
• What is the cash flow breakeven point?