Chapter 9 - Building your pro-forma financial statements. This chapter examines funding from entrepreneurs themselves, informal investors, and venture capitalists in the United States and throughout the world. Before we examine conventional means of financing startups in medium- and higherincome nations, we’ll begin by looking at how many would-be entrepreneurs eking out subsistence livings in some of the most impoverished regions of the world are being financed by microcredit organizations.
Trang 1BUI LDI NG YOUR
PRO FORMA
FI NANCI AL STATEMENTS
Chapt e r 9
Trang 2Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley,
Reduced survival
chance
Trang 3BUI LDI NG PROCESS
Trang 4FI NANCI AL CONSTRUCTI ON
CHECKLI ST
Build-Up Method
1 Identify all your sources of revenues
2 Determine your revenues for a “typical day”
3 Understand your revenue drivers
a How many customers you will serve
b How much product they will buy
c How much they will pay for each product
d How often they will buy
4 Validate driver assumptions
a Primary research (talk to customers, attend trade shows, etc.)
b Secondary research (industry reports, company reports, etc.)
5 Recombine Multiply the typical day by the number of days in a year
6 Determine Cost of Goods Sold (COGS) for a typical day
7 Recombine Multiply COGS by number of days in a year
8 Determine operating expenses by most appropriate time frame
9 Refine operating costs
10 Create preliminary income statement
Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley,
2017©
Build-up
method Comparabl e method
Integrated financial
Trang 5BUI LD UP METHOD
COGS
Operating Expenses
Revenue Worksheet
COGS Worksheet
Operating Expense Worksheet
Preliminary Income Statement
Revenue Projections
Trang 6UNDERSTANDI NG YOUR REVENUE DRI VERS
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Trang 7REVENUE WORKSHEET
Trang 8COST OF GOODS WORKSHEET
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Trang 9OPERATI NG EXPENSES WORKSHEET
Trang 10HEADCOUNT TABLE
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Trang 11I NCOME STATEMENT
Trang 12FI NANCI AL CONSTRUCTI ON
CHECKLI ST
Comparable Method
11 Compare revenue projections to industry metrics
12 Run scenario analysis
13 Compare common-sized cost percentages to industry averages
Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley,
2017©
Build-up
method Comparabl e method
Integrated financial
Trang 13COMPARABLE METHOD
Trang 14COMPARABLE ANALYSI S
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Trang 15FI NANCI AL CONSTRUCTI ON CHECKLI ST
Building Integrated Financial Statements
14 Derive monthly income statements for first two years, yearly statements for year 3–5
15 Create balance sheet (yearly for year 1–5)
16 Create cash-flow statement (monthly for years 1 and 2, yearly for years 3–5)
Build-up
method Comparabl e method
Integrated financial
Trang 16Adjust monthly forecasts according to seasonality
Annual forecasts for years 3-5
Consider Accounts Receivable
Show outflow and depreciate PP&E
Consider Accounts Payable
Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley,
2017©
Trang 17I NTEGRATED FI NANCI AL STATEMENTS
Trang 18SEASONALI TY PROJECTI ONS
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Trang 19FI NANCI AL CONSTRUCTI ON
Trang 20PUTTI NG I T ALL TOGETHER
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Continual iterations strengthen your financials and should give you
further confidence in the viability of your business model.
Trang 21CASH FLOW STATEMENT
Trang 22RECAP
Zacharakis, Bygrave & Corbett, Entrepreneurship, New York: Wiley,
2017©