Step 7. Business Plan
The steps involved in developing a Business Plan include:
Analysis of historical financial statements
Development of assumptions needed to achieve the strategic goals
Financial modelling of the financial statements for the next 5 years.
If the subject business is already established, you will be using the historical audited financial statements.
If the subject business is a startup, best practice is to become familiar with the published financial statements of publicly listed corporations in the same industry. These can be found at Gurufocus.com
An example of a 5-year financial model is shown in the graphic below.