Question

Develop and submit the FOURTH part of the business plan.

1. MARKETING PLAN

Overall Marketing Strategy.

Pricing.

Sales Tactics.

Service and Warranty Policies.

Advertising and Promotion.

Distribution.

2. DESIGN AND DEVELOPMENT PLANS

Development Status and Tasks.

Difficulties and Risks.

Product Improvement and New Products.

Costs.

Proprietary Issues.

Answer 1

FOURTH part of the business plan is

FINANCIAL PLAN

BALANCE SHEET

INCOME STATEMENT

CASH FLOW STATEMENT

INCOME PROJECTIONS

PARTIAL BUDGET OR ENTERPRISE BUDGETS

BREAKEVEN ANALYSIS

A balance sheet is a snapshot of a business's assets and liabilities and its owner's equity at a specific point in time. A balance sheet can be prepared at any time but is usually done at the end of the fiscal year (for many businesses, this is the end of the calendar year). Evaluating the business by using the balance sheet requires several years of balance sheets to tell the true story of the business's progress over time. A balance sheet is typically constructed by listing assets on the left and liabilities and owner's equity on the right. The difference between the assets and liabilities of the business is called the "owner's equity" and provides an estimate of how much of the business is owned outright. Owner's equity provides the "balance" in a balance sheet.

An income statement is a financial statement that shows you how profitable your business was over a given reporting period. It shows your revenue, minus your expenses and losses.

A cash flow statement is the predicted flow of cash into and out of a business over a year. Cash flow statements are prepared by showing the total amounts predicted for each item of income or expense. This total is then broken down by month to show when surpluses and shortfalls in cash will occur.

income projections is your pro forma profit and loss statement, detailing forecasts for your business for the coming three years. Use the numbers that you put in your sales forecast, expense projections, and cash flow statement.

A partial budget helps farm owners/managers evaluate the financial effect of incremental changes. A partial budget only includes resources that will be changed. It does not consider the resources in the business that are left unchanged.

The breakeven point is when your business's expenses match your sales or service volume. The three-year income projection will enable you to undertake this analysis. "If your business is viable, at a certain period of time your overall revenue will exceed your overall expenses, including interest." This is an important analysis for potential investors, who want to know that they are investing in a fast-growing business with an exit strategy.