1.3. Developing a Business Plan

Financial Plan

The financial plan expresses, in dollars, what the rest of the plan conveys in words—that the core business and any planned expansion are financially viable.

This section requires attention to detail to demonstrate that the clinic has a plan for financial sustainability. If the clinic is seeking a loan, this section addresses the funding needed and how and when the loan will be repaid.

The financial plan should discuss a number of financial reports and projections that will likely be included in the business plan’s appendix, for example:

• The first year operating budget.
• Multi-year budget projections (4–5 years).
• A cash flow forecast for the first year.
• Clearly stated assumptions that are used to develop projections.

For clinics that have been operating for several years, the financial plan should also present historical financial information (e.g., the past 3 years’ balance sheets and statements of activity).

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