86 | HOW TO WRITE A BUSINESS PLAN
CAUTiON
Keep assets separate from income.
An asset is a money item or something that
you could sell, like a car or a house. Income
is money you receive periodically, such as
a paycheck. Some assets produce regular
income—for example, stocks and bonds
that pay dividends, patents with royalty
agreements, and promissory notes you own.
Only list your assets here; you’ll list your
income later.
Cash and Cash Equivalents: List the
approximate cash balance in each of your
financial accounts. Include accounts in
banks, savings and loans, thrifts, credit
unions, or any other institutions. Identify
each by institution name, account type,
and number. Also list money market funds,
certificates of deposit (including maturity
date), and cash in your safe deposit box,
buried in the back yard, or any other place
you keep cash.
Marketable Securities: List any stocks,
mutual funds, and bonds you own that are
publicly traded. Show the number of shares
or the amount (face value) of bonds, the
exchange on which they are listed, and the
current market value. The value of stocks
is the number of shares owned multiplied
by the bid price per share listed in a
newspaper business section.
The current cash value for savings or
bank bonds is listed on the table printed
on each bond according to the number of
years since it was issued.
Corporate bonds are listed in the
newspaper in relation to their face or par
value, with a price of 100 being equal
to par. To calculate the value of your
corporate bonds, multiply the price listed
by their face value and divide by 100.
If you can’t find the listing for your
securities in your local paper, check online,
read the Wall Street Journal at your library,
or call your broker and ask.TiP
Note about unlisted securities: Call
your broker for the value of any stocks that
are not publicly traded and enter them under
Other Assets, below.Cash Value of Life insurance: If you own
whole life insurance policies, they may
include a cash surrender value, which
will probably be less than the face value
of the property. Obtain the value from
your insurance agent. If you own term
insurance, there will be no cash value, so
don’t list the policies.
Accounts and Notes Receivable: List only
those business assets and other assets
that are not shown on a separate financial
statement for your business or secured by
real property. List each note (loan) people
owe you and show the unpaid balance and
payment schedule, as well as a description
of any property securing the note. Briefly
state your relationship to the payer and
indicate if the payment of the loan is
questionable.