Leo offers great advice. If you need any additional information, SBA has resource partners like SCORE and Small Business Development Centers located across the country that provide free business counseling to individuals looking to start or expand a small business. Visit our local assistance guide to find your local SBA resource partners by entering your zip code.

The short answers are:
-Yes, you need to include the cost of the equipment and vehicles that you
need to purchase in your first year's projections. Because these are capital
investments (rather than normal expenses), these costs will be reflected on
your balance sheet and on your cash flow statements. Only the depreciation of
these assets will hit your income statement as expenses.
-No, your loan isn't part of your income. But, the loan will be reflected on
your balance sheet (increase in cash with increase in loan liability) as well
as your cash flow statements.

When putting together your financials, you'll need an income statement,
balance sheet, and cash flow statement. Each of these financial statements
shows a different perspective on your financial position, and they are all
important.