94 | HOW TO WRITE A BUSINESS PLAN
Determine Your Annual Income
The next part of the Personal Financial
Statement shows your income from
all sources. These figures show the
annual total of each income source, so
don’t confuse this with the asset section
completed earlier. However, if you show
any income from an asset in this section,
make sure you also list that asset in the
asset section. This form should reflect your
current situation and show your present
salary, even if you’ll quit your job to start
the new business.
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Note about cosigners: If someone
else will guarantee the loan with you—such as
your spouse—fill in the requested information
for that person as well.
Gross Salary and Wages: List all the sources
of your income, including wages, earnings
from your business, and independent
contractor work.
income From Receivables and Loan
Repayments: If anyone owes you money,
list the annual payments you receive. If
you have substantial income from loans,
you may list interest income and principal
repayments separately. Otherwise show the
entire repayment amount.
Rental Property income: If you rent out
real property or valuable personal property
like a truck or piano, list the annual rental
payments here. Include relevant details,
such as your plans to raise the rent in six
months.
Dividends and interest: List the source
and annual amount you expect to receive.
Make sure that the information shown
here corresponds to information you
have shown in the Assets portion of your
Personal Financial Statement. For example,
if you list dividend income from several
stocks and bank accounts here, they must
be listed in the Assets portion.
income From Business or Profession: If you
already own a business, list the annual
income.
Other income: Describe any other
source of income, such as payments
from judgments, payments from business
investments other than your main business,
trust fund payments, and so forth. It’s
generally a good idea to list alimony and
child support payments you receive, since
it increases your ability to repay any loan.
Total Annual income: Add up the income
you receive from all sources and fill in the
total.