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ABOUT JANEANE

Superwoman: noun

1. wife
2. mom of 4

I am Janeane Davis. I describe myself as a Superwoman, aka a wife and mother of four. I am an African-American mom blogger whose mission is to inspire, encourage and motivate women to be their best in business and at home.

I am the President and Chief Executive Officer of James, Davis and Associates, a private business consulting firm, If you need help motivating and inspiring your employees or making your business operations more efficient, we should talk.

Contact me directly at 215-586-3897, or janeanedavis@
janeanesworld.com to schedule a consultation.

A child's love is more precious than gold.

 

Business Planning Part 4 of 5 Finances

 

The-financial-section-of

 

It is thrilling to develop a plan for business success and part of that is understanding your business’ finances.  This article is the fourth in a five-part series on preparing business plans. Each article has been dedicated to creating a plan for starting or running your business. At the end of the series, if you follow the articles and complete each section, you will have a complete business plan you can use to operate your business or seek financing. Each article will cover a different topic:

 

As was discussed in Part One  and Part Two and Part Three of this series,  a business plan is a tool for gathering all the important information about running your business and your financial condition all in one place. A well done business plan will help you run your business on a day-to-day basis according to a pre-set, well thought out and organized plan. Even in times of unexpected crisis, a business plan is a great tool, to keep you focused, on track and mindful of the big picture you have set for your business. This article will deal with the current financial information section of the business plan.

The financial information section of the business plan is where you set out the financial aspects of your business. In this section start-up businesses will include start-up costs and a description of how the loan will be used. This section will provide the reader with a clear picture of your profits and losses, cash flow and other relevant financial information. This is where you will put your balance sheet, income statement and other related documents. The financial information section of your business plan will include the following sections:

  • Use of loan money
  • Start up costs
  • Profit and loss statement
  • Cash flow information
  • Balance sheets
  • Revenues vs costs

Use of Loan Money

This section applies only to those who are using the business plan to obtain financing. In this section list out all your uses for the borrowed funds as in the chart below:
Uses for Funds
Description
$ Amount
Use Number 1
Explanation of first use
$0.00
Use Number 2
Explanation of second use
$0.00
Use Number 3
Explanation of third use
$0.00

This is an opportunity for you to provide all the information investors and lenders need to show you will make good use of the money provided.

Start-Up Costs

If your business is a start-up use this section to explain the costs of starting your business. This is the place where you explain what money you put into the business, where it came from and what you used/are using it to accomplish.

Profit and Loss Statement

Any person who is considering making a loan to or investment  in your company wants to see your profit and loss statement. A business needs to make money and this is where you show that your business will be a profit-making enterprise. Use this section to explain cost of goods, operating expenses and all other items that go into making your business operate at a profit or loss.
Use this section to attach a detailed statement of cash flow in all your business accounts. Be sure to include beginning balance, sources of income, expenditures and ending balances.
 

Balance Sheets

Attach your current balance sheets. Be sure to have explanations for current assets, liabilities, and equity.

 

Revenues vs Costs

Use this section to list fixed and variable expenses compared to income. This is where you figure out how much money you need to make in order to cover your expenses. Over the course of the next week, complete these sections of the business plan so you will be prepared to start the marketing section with next week’s article.

As always, if you need assistance or guidance as you complete this section feel free to contact me:

Janeane Davis
James, Davis and Associates
2737 Cambridge Street Suite 2
Philadelphia, Pennsylvania 19130
215 586 3897
janeanedavis@janeanesworld.com

It-is-thrilling-to

The current financials  section of your business plan gives both you and outside parties a clear picture of what is going on with your business financially right now. As a business owner, you should always be aware of your financial picture. So the question for you this thrilling day is, what is the current financial condition of your business?
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  • http://www.chasing-joy.com Chasing Joy

    Thanks for sharing this info and making yorself available to help.

    • http://www.janeanesworld.com Janeane Davis

      You are welcome. I am the oldest of six and mama of four I don’t think I know how not to offer to help! hahaha

  • http://www.trucksandbubbles.com Laila @OnlyLaila

    I will admit that this is the side of my business that I’ve been slacking on. Thanks for the reminder.

    • http://www.janeanesworld.com Janeane Davis

      Laila, this is an area we all slack on sometimes because it is usually not our specialty. However once we control and understand where our money comes from and where it goes, we will be more successful.

  • http://www.melisasource.com MELISASource

    The money area of business planning is one that a lot of people tend to skip over, not realizing that it is the most important piece of the plan no matter what type of business it is. You laid it all out right here and I’m so glad that you did because it’s very important to understand all that needs to be done. Thanks for sharing! :)

    • http://www.janeanesworld.com Janeane Davis

      Thanks! You are right, the money part is crucial!

  • http://thetenthmuseplus.wordpress.com Jordan

    Hmmm..I’ve missed the other Thursdays. I’m gonna go back and check them out. I’ve been reading Black Enterprise about finances these days && I know I need to do better with this aspect so I’m gonna stalk your page a lil bit!

    • http://www.janeanesworld.com Janeane Davis

      Stalk away. I am writing an e-book about this topic. When is complete, I will announce it in SOSM group and give you a copy. This article has links to the other parts of the business plan. The final section, will be posted next Thursday.