Business Plans For Dummies, 3rd Edition
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A large part of your business plan includes your financial statements. Financial statements are formal records of your business’s financial activities; they provide a summary (short and long term) of your financial condition. The four basic financial statements are

  • Income statement: Your bottom line ¯ subtracting costs from revenue to come up with net profit

  • Balance sheet: A financial snapshot that shows what you own, what you owe, and what your company is worth

  • Cash flow statement: A cash monitor that follows the flow of cash in and out of your company

  • Budget: Your financial forecast that indicates where you plan to make and spend money

About This Article

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About the book authors:

Paul Tiffany, PhD, is a professor of management at the Haas Business School, UC Berkeley, and an Adjunct Professor at the Wharton School, University of Pennsylvania. Steven Peterson, PhD, is the founder and CEO of Strategic Play and an Executive Education Lecturer at the Haas Business School.

Paul Tiffany, PhD, is a professor of management at the Haas Business School, UC Berkeley, and an Adjunct Professor at the Wharton School, University of Pennsylvania. Steven Peterson, PhD, is the founder and CEO of Strategic Play and an Executive Education Lecturer at the Haas Business School.

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