The fifth and last part of the Side Hustle Business Plan is the financial plan. This part covers information on the finance required to take the side hustle off the ground and how it will be obtained. Specifically, the plan will indicate the estimated pre-operational costs, working capital, start-up financial requirements and proposed sources of finance. It will also show cash flow projections and a Pro-forma income statement, among others. Below are the sub-headings of the financial plan.

  • Pre-operational Costs
  • Working Capital
  • Financial Requirements
  • Sources of Finance
  • Cash Flow Projections
  • Pro-forma Income Statement

Pre-operational Costs

The focus question on pre-operational costs is:

What pre-operational costs will you incur before the side hustle opens its doors to the public?

List on a table (see sample below) the expected pre-operational cost items and state the amount of each. Examples of such items include premises rent, renovations, licenses and permits, installation of water and electricity, goodwill, initial stocks, machinery, equipment, tools etc.

Table 1 Pre-operational Costs

Cost ItemAmount (Kshs.)
Premises rent10,000
Total pre-operational costs 

Working Capital

The focus question on working capital is:

What are the weekly or monthly costs that will be incurred in running the side hustle?

Prepare a list (see sample table below) of expected monthly cost items and indicate the amount that will be incurred on each. Depending on the nature and size of the side hustle, working capital may be calculated to reflect the daily, weekly or monthly requirements.

Table 2 Working Capital (Monthly Costs)

Cost ItemAmount (Kshs.)
Stock purchases30,000
Working Capital (Monthly Costs) 

Financial Requirements

The focus question on financial requirements is:

What will be the initial total finance required for opening the side hustle?

Prepare a table (see sample below) to show the total of the pre-operational costs and working capital.

Table 3 Financial Requirements

ItemAmount (Kshs.)
Pre-operational costsTable 1 total
Working capitalTable 2 total
Total financial requirements

Sources of Finance

The focus question on sources of finance is:

How do you intend to raise money for the total financial requirements of the side hustle?

Describe how you intend to raise the side hustle financial requirements. If you are planning to borrow some, indicate the sources and their terms and conditions. Describe the security that you will offer to the lenders including the repayment amounts and duration of the loan. 

Table 4 Sources of Finance (Proposed Capitalization)

Amount (Kshs.)
Personal Savings300,000
Total Proposed Capitalization

Cash Flow Projections

Focus questions on cash flow projections are:

What will be the expected sales from your products or services on a monthly basis?

What will be the expected expenses of running the side hustle on a monthly basis?

Based on your assumptions, estimate the sales expected per month for the next 6 months from the date of operation. Also, estimate the expenses that you will incur per month to run the side hustle for the next 6 after opening the side hustle. Using the table below, show the money to be received and paid out for the next six months.

Table 5 Projected Monthly Cash Flow Statement for the First Six Months of Operation

Cash sale


Total Receipts


Cash purchases

Total payments

Net cash flow

Balance carried forward 

New Balance

Pro-forma Income Statement

Focus questions on a Pro-forma income statement are:

  • What will be the expected total income from side hustle for the first six months?
  • What will be the expected total expenses for side hustle by the end of six months?
  • What will be the side hustle’s net profit/loss for the initial six-month period?

Using the format below, show the expected income and expenses of the side hustle for the first six months. Determine the net profit/loss of the business. 

Table 6 Pro-forma Income Statement


Total Income

Total expenses
Net profit/loss


Use the whole of this week to prepare all the tables required for the Financial Plan. Next week on Monday expects information on the layout of the full Financial Plan.

Feature Image: Why Will Drafting Is The Most Important Piece in Your Financial Planning Jigsaw!

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