The Uses of Funds schedule needed for a Business Plan and/or Projections and/or Forecasts should be a straightforward, one to two page document completed in Excel. For Business Plans that have multiple phases or expansions that require phased or tiered investment, additional Use of Funds schedules, or a single schedule with columns for Phase I, Phase II, etc., should be utilized. When completing Forecasts, let alone Uses of Funds, it is imperative to structure these documents in one file with multiple worksheets so they can be easily edited to suit the needs and expectations of individual investors or institutions.
Operating Capital is often the greatest need for new and expanding businesses. A one year cash flow snap shot just doesn't cut it, as most would lead you to beleive versus a separate forecast on a month-to-month basis for one to two years so that accrued monthly net losses until profitability is reached will result in a line item & amount for Operating Capital on the Sources and Uses of Funds schedule.
Another key line item within the Uses of Funds schedule includes the Marketing Budget, which should be a separate schedule that results in a single line item within the Uses of Funds schedule for Business Plans of substance. Our expertise in marketing helps us to be part of your team in establishing a marketing budget tied to a Marketing Plan and sales strategies that suit your business.
Other line items that are important to the Uses of Funds schedule include cost of products, equipment, leasing and utility deposits, and funding costs, and organizational expenses.
Keep in mind that expenses such as the business and marketing consulting services we provide, as well as legal, accounting, and organizational costs, are typically items that will be reimbursed to the principals of the business under most funding options.
