Sources and Uses of Funds

The Sources and Uses of Funds schedule needed for a Business
 Plan and/or Projections or Forecasts should be a 
straightforward, 1-2 page document completed in Excel. For 
Business Plans that have multiple phases or expansions that 
require phased or tiered investment, additional Sources and Uses 
schedules, or a single schedule with columns for Phase I, Phase II, 
etc., should be utilized. When completing Forecasts, let alone 
Sources and Uses, it is imperative to structure these documents 
within one file in 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. Typically, a Forecast based on accruals is sufficient 
when completed on a month-to-month basis for 1-2 years [so that 
accrued monthly net losses until profitability is reached will result in 
a line item for Operating Capital on the Sources and Uses of Funds 
schedule].
 
Another key line item within the Sources and Uses includes the 
marketing budget, which should be a separate schedule that results 
in a single line item within the Sources and Uses 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 Sources and Uses 
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 your legal, accounting, 
and organizational costs, are typically items that will be 
reimbursed to principals under most funding options.