Consult with trained professionals to help you in the area of accounting and legal matters. If your business can't afford an accountant to establish your books, then you are undercapitalized. You need to secure additional resources before starting. All businesses should perform this analysis without exceptions. A break-even analysis shows the volume of revenue from sales that are needed to balance the fixed and variable expenses.
Cash flow is critical to the survival of any business.
If the goal of your business plan is to obtain financing, you will be required to generate financial forecasts. The forecasts demonstrate the need for funds and the future value of equity investment or debt repayments. This exercise is critical in obtaining capital for your business. To obtain capital from lending institutions you must demonstrate the need for the funding and your ability to repay the loan. The forecast that you generate should cover a three to five-year period.