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Planning Your eBusiness Money Requirements

The Financial Process

How do you go about estimating and requesting the amount of eBusiness Money you will need to start or expand your business? To begin include different scenarios, such as a best and worst case events, but remember that later, in the financial section, you must be able to back up these requests and scenarios with the corresponding financial statements.

You will want to include the following in this business planning section:
  1. Your current and future ebusiness Money requirement, over the next   five years

  2. How you will use the funds

  3. And any long-range financial strategies that you are planning that would  have any type of impact on your request.

  4. When you outline your current and future finance requirements, be sure to include The amount you want now and the amount you need in the future,

  5. The time period that each request will cover,

  6. The type of finance you would like to have (i.e., equity, debt), and the terms that you would like to have applied.

  7. How you will use your funds is very important to any creditor.

  8. Is the financing request for capital expenditures? Working capital? Debt retirement? Acquisitions? Whatever it is, be sure to list it in this section.

Include any strategic information related to your business that may have an impact on your ebusiness Money situation in the future, such as: going public with your company, having a leveraged buyout, being acquired by another company, the method with which you will service your debt, or whether or not you plan to sell your business in the future. Each of these are extremely important to a future creditor, since they will directly impact your ability to repay your loan.

 Financial Information

These should be developed by using a profit and loss spreadsheet after you have analyzed the market and set a clear objective so you can efficiently allocate the resources you have available.

Your eBusiness's Financial information

If you run an established ebusiness, or business you will be requested to supply historical data related to your company's performance. Most creditors request data for the previous three to five years, depending on the length of time you have been in business.
The historical financial data you would want to include would be your company's income statements, balance sheets, and cash flow statements for each year you have been in business (usually for up to 3 to 5 years). Often creditors are also interested in any collateral that you may have that could be used to guarantee your ebusiness Money, regardless of the stage of your ebusiness, or business.

Future Financial Data

Any ebusiness, or business whether start up or growing, will be required to supply future financial requirements and income. Most of the time, creditors will want to see what you expect your ebusiness, or business to be able to do within the next five years. Each year's documents should include forecast income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, you should supply monthly or quarterly projections. After that, you can stretch it to quarterly and/or yearly projections for years two through to five.

Be sure to make your projections match your ebusiness. Money requests; creditors will be on the lookout for inconsistencies. It's much better if you catch mistakes before they happen. If you have made assumptions in your projections, be sure to summarize everything.

Include a brief breakdown of your financial information. Include a ratio and trend analysis for all of your financial statements.  You may want to add figures or graphs of your trend analysis (especially if they are positive).

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For free advice or information about anything on this page you can reach by using the form on the contact us page.

Women in Business,
With more women wanting to build either a homebased business, or run one from premises. We are devoting a page with advice and guidance, just for women who want to start and become business owners.

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