Business planning: Financials

This section should be a little easier to start, since you've already thought through some startup and operating costs.

Key points to include are:

• The size and source for the initial investment
• The bookkeeping and accounting system you will use
• Balance sheets and projected income statements for two to three years
• The first-year operating budget and cash flow projections

If you're not sure how to pull together detailed financial reports, you may need to hire an accountant or financial planner. Just make sure you go over these final documents together. It's hard to impress a lender with the financials if you can't explain them.

Industry associations in your field of business can provide much of the information you'll need. The library reference area is an excellent source of industry data, and trade magazines and professional association newsletters often publish statistics. The federal government also provides business, economic and trade data.

Make sure to include copies of any supporting documents such as tax returns, personal financial statements and contracts such as franchisee agreements, purchase agreements or leases.