What aspect of a business plan includes financial statements and a budget for the first year?

The financial section of a business plan is dedicated to outlining the monetary aspects of the business, which includes detailed financial statements such as income statements, cash flow statements, and balance sheets. This section typically provides projections for business performance over the first year and often includes a budget that details expected costs, revenues, profit margins, and other relevant financial metrics.

By focusing on financial projections, this aspect helps stakeholders, including investors and lenders, understand the financial viability and sustainability of the business. It establishes a roadmap for financial goals and benchmarks, allowing for effective monitoring of financial performance against the set budget throughout the year.

In contrast, the operations section would detail the processes and logistics of running the business, while the marketing section focuses on strategies to attract and retain customers. The executive summary provides an overview of the entire business plan, summarizing the key points without delving into detailed financial data.