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The financial plan is a crucial component of your business plan, detailing projected revenues, costs, return on investment, and financial resources to attract investors and lenders. It outlines the business's historical financial state, if applicable, along with future projections based on certain assumptions. The plan includes three key financial statements: income statement, cash flow statement, and balance sheet, along with break-even analysis, funding requests, and exit strategies. For startups, it should cover startup expenses and assets, while established businesses need to present income statements, balance sheets, and cash flow statements from the past three years, along with a five-year financial outlook.
