Question

Sam is planning to open a pool cleaning business from his home. Sam’s business will come with a set-up cost of $9,000 and an annual operational cost of $30,500. Sam anticipates an annual profit of $45,000 for the first year and expects profits to increase by 5.5% annually for the next 5 years.

This is all information Sam should include in the _____ component of his business plan.
a.
organization plan
b.
financial analysis
c.
executive summary
d.
implementation plan

Answer 1

b. financial analysis

Those cost and profit figures (start-up cost, operating costs, and profit projections over time) belong in the financial analysis or financial projections section of a business plan.