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Practical Management for CareerReadiness

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Entrepreneurial Finance

What’s Next?

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Feasibility Study

Income Statement

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Feasibility Study

Income StatementCash Flow Statement

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Feasibility Study

Income StatementCash Flow Statement

Balance Sheet

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Feasibility Study

Income StatementCash Flow Statement

Balance SheetMaybe; Maybe Not

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Cash Flow StatementDo this Monthly

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Cash Flow StatementDo this MonthlyShows cash on hand

How much cash do we need?When do we need it?

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Cash Flow StatementDo this monthlyShows cash on hand

How much cash do we need?When do we need it?

When will we break even?From an investment perspective

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Cash Flow StatementDo this monthlyShows cash on hand

How much cash do we need?When do we need it?

When will we break even?From an investment perspectiveOperational break even

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Income StatementDone Monthly

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Income StatementDone MonthlyProfitability

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Income StatementDone MonthlyProfitabilityControl expenses

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Income StatementDone MonthlyProfitabilityControl expensesScenario Evaluation

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5-Year Projected Net Income

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

$200,000,000

Y1 Y2 Y3 Y4 Y5

Base Case Best Case Worst Case

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How Much?

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How Much?

Funding sought = What percentage of thecompany?

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How Much?

Funding sought = What percentage of thecompany?

Cash Flow Statements and Income Statementsquickly show this information

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-5,000,000

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61

Base Case Best Case Worst Case Linear (Base Case)

Operating Cash Flows

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