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The financial section of a business plan is essential for understanding the monetary needs of a startup. It should include a capital requirements plan detailing all investments, running costs, and initial setup expenses. Additionally, it must outline expected revenues and costs over the next three years, leading to a profit forecast for this period. The financial projections need to be realistic and undergo plausibility checks. A liquidity plan is also crucial, ensuring the business has enough revenue, reserves, and/or credit facilities to maintain solvency. Overall, sound financial planning is vital for business viability.
