Innovation Principles and Environments

Team Project: Deliverable 5:

Pro-Forma Financials

Learning Objectives
• Gain experience in projecting financial results for a new venture.
• Explain well thought out and researched projected revenues and projected P&L.
• Justify and explain funding requirements and your idea valuation.

Due Date
Please have one team member submit your assignment by Sunday, April 14th at 11:59 PM (UPC time).

Assignment Overview
Step 1: Identify Revenue Sources
Develop updated monthly revenue projections for the first two years of operation.

Step 2: Identify Costs

Based on your business model, develop monthly updated cost projections for the first two years of operation.
Attach words to numbers- for example “rent” could be $2,000/month.

Step 3: Create Your Pro-Forma Financials Deliverable

This should be submitted to the assignment drop box, as explained below in the Assignment Submission
Instructions section. The deliverable has four major sections:

1. Your Project or Service Concept

Provide a brief description of your product or service concept.

2. Revenue Projection
Provide revenue projections as described above. Explain your projections and indicate your “time to first
dollar.”

3. P&L Projection
Subtract your expected costs from your expected revenues to create P&L statements for the same
periods. Explain your projections and indicate your “time to first profit.”

4. Funding Requirements & Ownership/Equity Split

This should include a valuation on your idea. Be specific about how much equity you need to sell in
order to raise enough funds to launch.
Evaluation Criteria and Grading Rubric
This assignment will be evaluated using the grading rubric below.

Criteria 100% Credit 80% Credit 50% Credit or Less

Description of Venture Perfect! Venture Venture concept fairly Venture concept poorly
Concept concept very well well explained. explained.
(10%) explained.
Projected Revenues Perfect! Realistic and Adequate revenue Inadequate revenue
(30%) well researched revenue projections, fairly well projections, poorly
projections, well explained. explained.
explained.
Projected P&L Perfect! Great P&L Good P&L projections, Inadequate P&L projections,
(30%) projections, well fairly well explained. poorly explained.
explained.
Funding Requirements Excellent! Well argued Good but missing some Inadequate, poorly justified.
& Valuation (15%) and justified. justification.
Overall Perfect! Maximum Overall document Overall document quality
(15%) “wow” index. quality almost meets does not meet professional
Professional overall professional standards. standards. Poorly structured
document quality. Well Fairly well structured and unclearly written with
structured, clearly and clearly written with many spelling or grammar
written with no spelling few spelling or grammar errors.
or grammar errors. errors.

Assignment Submission Instructions

Save your assignment as a .docx or .pdf file.

Include your team name in the title of the electronic file for identification purposes (e.g.,
Team1ProFormaFinancials), and do NOT use any spaces, punctuation, or special characters in the file name.

Please consider verifying the Turnitin similarity percentage following the instructions at
https://studenthelp.intech.arizona.edu/article/85-check-work so you can make any adjustments before
submitting your work.

After completing the assignment, have one team member submit it for grading using the assignment drop box
as indicated below.

• Navigate to the folder Table of Contents -> Learning Modules -> Week 5 on D2L.
• Click on the Pro-Form Financials assignment drop box title.
• Click on the Add a File button.
• Find the file you would like to upload. If you are using the most current version of your internet browser,
you can drag and drop the file into the target area of the Add a File window. You can also use the
Upload button to browse for and select the file you would like to add.
• Once you have selected your file(s), click the Add button in the bottom, left corner of the window.
• Click on the Submit button to complete the file submission.
• Upon successful assignment submission, you will receive a confirmation email.

For further details on submitting assignments, please refer to the

https://studenthelp.intech.arizona.edu/article/311-submit-an-assignment web site.

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Please note: If you make a mistake (such as leaving out part of the assignment, send the wrong files, etc.) and
the Assignment tool won’t let you submit, then you must contact the instructor and describe what happened.

Assignment Feedback
When the instructor has graded the assignment, you will be able to view your grade and feedback comments by
clicking on Assignments (in the navigation bar toward the top of the screen). For details on viewing assignment
grade and feedback, please refer to the https://studenthelp.intech.arizona.edu/article/312-view-feedback-and-
turniti-com-reports-on-assignments website.

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