How to prepare a Business plan? Use the template in Excel

Excel business plan template was created by Pan-Plan company to calculate the project effectiveness free of charge. The template is provided in Excel format, with no passwords and locked cells in the document. Enjoy the use!

What do you receive in the business plan Excel template?

It’s 5 year business plan template Exel

 The business plan template allows you receive planned indicators of income and expenses for the coming 5 years. The cash flow forecast is elaborated based on the current activity of the company. An assessment of the performance indicators of the investment project is also made including the following specific indicators:

  1. Cash flow for 5 years;
  2. Net present value for 5 years;
  3. Payback period of the investment project (calculated on the basis of a discounted cash flow);
  4. Planned profit of the enterprise for 5 years;
  5. The cost of the company assets for the first year;
  6. Calculation of credit repayment for the acquisition of assets;
  7. The internal rate of return of the enterprise.

Excel business plan template – pros and cons


A business plan template in Excel is used by many start-up entrepreneurs to calculate the financial part of the business plan. The every concept of template envisages the application of the same method for calculations. The calculations for a business plan require a typical sequence of actions to be followed. This is made to provide the creditor with a plan of future income, expenses and cash flows in a convenient format. The created template of calculations allows forecast the activity of the company in general and over a certain period in the future.


Not all Excel templates for the business plan look the same. In particular, there are templates that allow determine how much money is needed to launch business. Namely, they calculate the amount of funds necessary to start. There are also templates allowing prepare financial forecasts for several years ahead. At the same time, the models for developing such plans are quite different. They are usually created by the developers individually taking into account their experience and knowledge of theory. So is it possible to apply such templates to your own business? – Definitely, yes! If you have a clear understanding of the peculiarities that distinguish your business from the similar ones and can make some additional changes relevant to your business activity, the task looks much easier.

Each company is unique and has its own specific system of finances. Quite often, the above-mentioned templates cannot be used to the fullest extent to provide calculations for any business plan. There is no perfect Excel template for business plan, however, there are typical templates for beginners that allow find a suitable path in complicated finances when planning a start-up.

Download free Excel Template

What is the sequence of steps using the Excel business plan template?

Before using the template, please read the example of it. You need to understand clearly whether the results meet your needs or you expect more from the template.

Each Excel business plan template free to download is based on the investments’ cost, as well as indicators of current income and expenses.

Before you use a template, consider carefully the business idea. You will not be able to plan metrics, if you can’t predict the sales volume. The main task you have to complete before using the business plan template in Excel is the study of customers. It is necessary to define who they are and the number of them and investigate how much money these customers can bring to your enterprise in the form of revenue.

Consequently, planned income is the starting point on which all calculations conducted in the business plan should rely.

Only after these steps are over, it’s possible to plan the volume of the required capital to start operations.

Things you need to know about fixed assets preparing a business plan

 1) The enterprise’s fixed capital forms non-current assets. Fixed capital comprises capital investments which are carried out for several years in advance. These investments provide an opportunity to generate cash flows for many years.

2) It’s impossible to regard the funds spent on the purchase of fixed capital as expenses because the write-off is performed gradually in the form of depreciation amounts. It’s necessary to realize that each type of assets has its own useful period. For instance, buildings can be used for 20 years, while the computer – only 5. The useful period of the website is 10 years.

3) It is necessary to plan the residual value of all assets that remain on the balance sheet after the full write-off of the fixed assets cost in the form of depreciation. The way of determining the depreciation amounts varies among countries, however, at least 1% of the assets value should be left in the form of residual or liquidation value.

So, we plan not only the value of assets, but also two additional indicators: the useful period of this asset and the amount of the liquidation value. These indicators are taken into account during the calculation of depreciation.

4) Depreciation can be carried out in several ways. Accelerated depreciation method allows write off expenses for the purchase of assets faster, while the straight-line one makes it in equal shares throughout the entire period of use.

How to make a forecast of the production volume?

 There is no template for this task since this is the most complicated business plan item. However, there is a variety of methods used to plan production volumes.

  1. The first one is based on the production capacity of both the equipment and personnel employed at the enterprise. If the equipment is designed for the production of a certain quantity of products per month, it’s possible to plan a given production volume only under one condition: if there is a guarantee all the products will be sold. This is possible only when the products are well-known to the customers and the distributors feel confident about their ability to sell the whole volume considering the statistics of the previous years.
  2. The second one is based on survey data conducted by marketing specialists aimed at determining the attitude to the new product and readiness to buy it.
  3. The third one is based on sales data of competitors selling similar products or providing similar services.
  4. Finally, the fourth one is based on personal assumptions resulting from market analysis and definition of the target audience that is ready to buy products. These may be data obtained from the mass media or reports of market analysts who conducted the research on request. However, the investors are pretty skeptical about such figures.

How to prepare a plan of costs

 The costs of any enterprise consist of four main elements.

1) Material costs that represent the costs of raw materials for the production of a single unit.

2) Labor costs, which include not only the wages of employees, but also the cost of paying social contributions. In different countries, payrolls are made in different ways. There are countries where the payroll tax is levied, but there are also countries where each employee independently distributes revenues to various insurance funds. In the last case, insurance premiums are not included into the costs of the enterprise.

3) Depreciation deductions are also considered as the costs of an enterprise, but they do not form a cash flow.

4) Indirect costs are one of the most difficult for planning. They include the cost of licensing fees, advertising costs, delivery, payments for various permits, taxes, utilities, warranties, communications etc. Quite important are the costs of non-operating activities: repayment of interest on loans or dividends to the founders or shareholders. These costs may account for the major part of the production costs and they are the main source for reducing the final price of finished goods.

You can also get templates:

  1. Business plan of a bar in Excel
  2. Bakery business plan in Excel
  3. Business plan of a coffee shop in Excel
  4. Business plan of a cafe in Excel
  5. Business plan of e-commerce store in Excel