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What Should Be Included in a Financial Plan?

Greg Swanson

A financial plan gives your business a clear map for how money comes in, how it gets spent, and how much you expect to grow. Knowing what should be included in a financial plan helps you make smarter, more confident decisions.

Quick answer: Your financial plan should include income projections, expense estimates, cash flow forecasts, profit goals, and funding needs.

Income and Revenue Forecasts

Start with how much you expect to earn over time. Break this down monthly, quarterly, or annually. Factor in seasonality, pricing, and sales goals to keep it realistic.

Expenses and Budget Planning

Estimate fixed and variable costs—rent, software, salaries, marketing, and supplies. Solid small business financial planning includes a clear monthly budget.

Cash Flow Projections

Track when money enters and leaves your account. This helps you stay ahead of bills and avoid cash crunches, especially in slower seasons.

Profit and Break-Even Analysis

Know how much you need to sell to cover your costs. Set profit targets and timelines for when your business becomes sustainable.

Funding and Capital Needs

If you need loans or investments, outline how much you need and how you’ll use the money. Show lenders you’ve got a plan for growth and repayment.

Final Thoughts

A complete financial plan sets the foundation for healthy business growth. Include your business budget essentials so you're always prepared, even when things don’t go as planned.

Updated: August 16, 2025

What are the basic components of a financial plan?

A financial plan should include income forecasts, expenses, cash flow, profit goals, and funding needs.

Why is cash flow important in a financial plan?

Cash flow projections help ensure you have enough money on hand to cover expenses and avoid running short during slow periods.

How often should I update my financial plan?

Update your financial plan quarterly or whenever your business sees major changes in revenue, expenses, or goals.

Do I need a financial plan to get funding?

Yes, investors and lenders usually want to see a detailed financial plan that outlines how you’ll use the funds and repay any debt.