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The business plan is the major factor in the evaluation of a project. It guides the owner, manager or overseeing group towards the decision to get ahead and really start the business or justifiably expand it. As an essential tool, the business plan is primarily for your benefits and secondarily for the others: investor, banker, accountant, lawyer, participant or staff. Once you have created it, the plan will reflect your confidence and commitment.

In the same manner that a physician will use a thermometer to take your temperature and diagnose your well being, the business financials provide you with a measure of the health of a company. It is here that the real condition of the patient can be forecast or revealed. With the exception of the occasional creative accounting the financials are true, objective assessment of a company status which is as important a report to choose concerned as would be the result of a personal physician examination. Whether it’s the balance sheet, profit and loss statement (P & L) or forecast the information found in the numbers expressed the condition of the business.

As we know numbers are virtually universal languages with their own unique ability to be both general and specific. Once a business person commands an understanding of financials reporting and terminology there is an entry to the international world of business where the number are common and interpretations are nominally the same. With number and financials we communicate in a languages hat permits common exchange with bankers, accountants, customers, suppliers, investors, and industry colleagues. Any other written or verbal language can be shaded or interpreted to the benefit or detriment of the receiver. Numbers are according to the old saying like a lamppost to the traveler they light the way.