What is the difference between a start-up plan and an ongoing plan?
The Plan Setup prompts you to set your plan as either a start-up company or an ongoing company. The start-up companies have the Start-up table, and ongoing companies have Past Performance. Either one of these tables will establish the starting balances which appear in column B of the Balance Sheet table.
The start-up table contains expenses, assets, investments, and liabilities (loans) which occur before the plan's starting date. The past performance table allows you to reflect general historical financial data for up to three years prior to the starting date.
In general, ongoing plans are used when you are already in business, or when buying a business for which you have detailed historical financial information, and for which you also don't plan major changes in location, name, or products and services. This past/future comparison helps provide a reality check on your growth projections.
Start-up plans can be used for new businesses, or when buying a business to which you plan to make major changes.
More on Start-up
The start-up table does more than just set the starting balance. It also details important sets of information items for a new company:
- Start-up expenses: these are expenses that happen before the beginning of the plan, before the first month. For example, many new companies incur expenses for legal work, logo design, site selection and improvements, and other expenses. This is presented as a simple list, for which you can both insert and delete rows. As with several other summary lists in Business Plan Pro, you may not be able to delete the first or last row in the list, but you can always rename it and delete a row in the middle.
- Start-up assets: typical start-up assets include: cash--the money in the bank when the company starts, starting inventory, as well as other assets, both short-term and long-term, such as equipment, office furniture, machinery, etc. Business Plan Pro assigns assets into fixed categories, because those same categories are also already in the Balance Sheet and Cash Flow tables. All companies see cash, other short-term assets, and long-term assets. Companies that deal with inventory (a Plan Wizard setting) will also see a cell for starting inventory.
Start-up Funding table
This table is where you can enter both loans (liabilities) and capital investment. The liabilities section is defined with the same categories used in the Balance Sheet and Cash Flow. The investment section is another summary list area, so that you can add or delete rows and rename the row labels to complete your list.