A business plan should include financial information about your business and a pro forma statement. Financial information should provide a potential investor with information regarding your business’ financial sustainability. You can follow these steps to create a pro forma statement for your business plan.

Step 1.

Develop a list of what services or products you will provide or sell, along with a pricing strategy. Using a spreadsheet can help keep your list organized and allow you to easily add products or services as your business grows.

Step 2.

Project your income for the next year, including your cash flow, fixed assets, current assets and your liabilities. These hypothetical estimates should be based on real-world examples, available through organizations such as the SBA. You may examine companies in your industry area with a similar geographic region.

Step 3.

Calculate all of your revenue from sales, interest and the cost of goods sold. Include your expenses, such as operating costs, tax payments and depreciation of your property.

Step 4.

Gather all of your current financial data that you have, including your current and fixed assets, your liabilities and itemized information about the equity of your shareholders. Compute the shareholders' equity stake by subtracting the liabilities from the assets.

Step 5.

Create a cash flow analysis that projects your sales figures based on your pricing strategy. Organize your cash flow statements to include your net income, sales, assets and stocks, bond or dividend payments. Always start with the ending cash balance from the previous month and add the cash balance to your projected sales. Subtract all of your projected expenses.

Step 6.

Create a pro forma financial statement with all of the information you have gathered. The pro forma statement should outline income and expenses by monthly periods, quarterly and annually. If you are creating a business plan to find investors or get a loan, create a pro forma statement for the first three to five years of business.


If you have problems with estimating such figures, you may consider hiring a certified public accountant (CPA) to complete the forms.

Remember to be realistic for all of the projections for income and expenses.

Prepare pro forma statements for the next few years based on the best case, expected case and a worst case scenario.


Avoid giving investors a business plan without a pro forma statement. A serious investor will not review your business plan without an accurate pro forma.