The income statements should delineate sales, expenses, margins, and income or loss and should be prepared monthly through year two and quarterly for years three through five. The cash-flow forecast shows the cash receipts, disbursements and cash requirements over the same time period as the income statements. The balance sheet shows assets and liabilities, and a break-even analysis should be included as well. The financial projections should be straight-forward and easily understandable. If detailed spreadsheet analysis is required, do not put it in the business plan.
Investors have neither the time nor the inclination to wade through reams of financial data.
If they require supporting evidence, they will ask for it. The Management team should portrait itself as an experienced group of erudite businessmen. The company management should be composed of a team, usually a group of from two to five individuals that have different, but complementary areas of expertise. They should all have previous business experience, and the more experience available in the company's particular field of endeavor, the better. If a sole entrepreneur is to guide the company, he must identify and attract additional management experience.