Practical Management for Career

Readiness

Essentials of Entrepreneurship:
Thinking & Action
Module 2

with David Standen, D.B.A

Entrepreneurial Finance
Whats Next?

Feasibility Study

Feasibility Study
Income Statement

Feasibility Study
Income Statement
Cash Flow Statement

Feasibility Study
Income Statement
Cash Flow Statement
Balance Sheet

Feasibility Study
Income Statement
Cash Flow Statement
Balance Sheet
Maybe; Maybe Not

Cash Flow Statement

Do this Monthly

Cash Flow Statement

Do this Monthly
Shows cash on hand
How much cash do we need?
When do we need it?

Cash Flow Statement

Do this monthly
Shows cash on hand
How much cash do we need?
When do we need it?

When will we break even?

From an investment perspective

Cash Flow Statement

Do this monthly
Shows cash on hand
How much cash do we need?
When do we need it?

When will we break even?

From an investment perspective
Operational break even

Income Statement
Done Monthly

Income Statement
Done Monthly
Profitability

Income Statement
Done Monthly
Profitability
Control expenses

Income Statement
Done Monthly
Profitability
Control expenses
Scenario Evaluation

5-Year Projected Net Income

$200,000,000
$180,000,000
$160,000,000
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0

Y1

Y2

Y3
Base Case

Best Case

Y4
Worst Case

Y5

How Much?

How Much?
Funding sought = What percentage of the
company?

How Much?
Funding sought = What percentage of the
company?
Cash Flow Statements and Income Statements
quickly show this information

Operating Cash Flows

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0
1

10

13

16

19

22

25

28

31

34

37

40

43

46

-5,000,000
Base Case

Best Case

Worst Case

Linear (Base Case)

49

52

55

58

61