Financial and operation plans as a part of a more encompassing business plan must be carefully structured, realistic and detailed for any company to maintain investors’ interest, receive funding and attract potential investors. Financial and operational plans should reflect the company’s product development, marketing and production, which should be specified in each part of the business plan.
The purpose of financial and operational plans is to show investors that the executives have a detailed and calculated plan on the company’s finance and growth. A good business plan outlines in detail the consistency between the financial plan and the operational goals. This provides investors with information which should make them capable of making informed decisions on their investments.
Investors often expect the following to be included in the financial plan: