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shows whether the business is viable or not and can attract potential investors

financial plan

Usually set-up using a spreadsheet

projecting your sales in a given

amount of time.

Sales Forecast

How much it's going to cost you to

actually make the sales you have

forecasted

Expense Budget

The statement that shows physical

money moving in and out of the

business

Cash Flow Statement

Pro forma profit and loss statement,

detailing forecasts for your business

Use the numbers that you put in your

sales forecast, expense projections,

and cash flow statement

Income Projections (Income Statement)

A statement of the financial position

of a company that lists its assets,

liabilities, and owner’s equity in a

given period of time.

Balance Sheet

Analysis to help determine when your

business's expenses match your

sales or service volume

Break-Even Analysis

The sum of funds that your company needs to achieve its goals

Calculate the capital requirements by adding founding expenses, investments

and start-up costs together

Capital Investment

Shows your Revenues, Expenses, and Profit

for a particular period.

Snapshot of your business that shows

whether or not your business is profitable at

that point in time; Revenue - Expenses =

Profit/Loss

Income Statement

Shows how cash is expected to flow in and

out of your business

Cash Flow Statement

Presents a picture of your business' net

worth at a particular point in time.

It summarizes all the financial data about

your business, breaking that data into 3

categories; assets, liabilities, and equity

Balance Sheet

company that takes raw materials or pre-assembled parts to create a product/service

manufacturer

a company that purchases products from manufacturers to resell to retail outlets or directly to consumers

distributor

a company that purchases products from distributors or wholesalers and sells them to the public

retailer

a company that adapts the business model of the franchiser

franchise