If you're just starting out, you face a special challenge because you don't have an established track record on which to rely. There is no history of operations, profitable or otherwise. Instead, you must rely heavily on your ability to sell yourself as a potentially successful business owner. It doesn't matter whether you're using your business plan in an effort to obtain financing or to convince prospective employees to come to work for you. You need to convince whoever reads your plan that you have a genuine opportunity for success. In large part, your ability to sell yourself is a substitute for the historical information that doesn't exist.
Therefore, your plan should include personal financial information in lieu of the historical information that an ongoing business would be able to provide. This personal financial information should identify the amount and source of funding that you have available to invest in the business. It should provide specific details regarding any personal assets that you plan to use in running your business. Other documents that may be required, particularly if you're trying to obtain outside financing, are your personal income tax returns for the last few years.
Just like an established business, you're also going to need to provide projected profit and loss statements and projected cash flow budget worksheets. These documents quantify the results you expect to achieve through your operations. Be sure to include any startup costs that you'll incur prior to opening your business when you develop these estimated financial statements. While your business will probably involve certain expenses that are unique to your industry, don't forget some of these more common startup expenses:
- professional fees (legal or accounting)
- regulatory charges (licensing, cost to incorporate)
- security deposits on rented space
- computer equipment and cash registers