Can I Make Money? Building A Financial Forecast
Before using your hard-earned cash to start a new business, buy a business or improve your existing business it helps to know if putting your cash in the bank would reap better rewards. Learn how to model your business performance by creating a simple pro-forma income statement.
After completing this workshop, you will have a better understanding of boxes #8 and #9 of the Business Model Canvas, "Cost Structure" and "Revenue Streams", as explained by SCORE mentors.
Why Create a Pro-Forma?
If you plan to start a new business:
- How much money will you spend before opening the doors?
- How long before you start making money?
- Which products/services will make you successful?
If you plan to buy a business:
- Historical results are in the financial statements.
- Where are the strengths and weaknesses?
- Going forward, how will you build on the strengths and eliminate weaknesses?
If you want to improve your existing business:
- Change your business model to make more profit.
- Perform scenario planning in times of uncertainty.
View and download the presentation PDF here.
Joe came to Florida in 2006 to start a print marketing business. Joe had been a manager and engineer with Digital Equipment, Quantum and Waters Corporation. With no experience in the printing business, Joe worked under a national franchise organization for two years and spent the last eight years as an entrepreneur with Advantage Print & Design. Joe serves as a marketing partner for dozens of businesses in Manatee and Sarasota County.
Steve spent 25 years in the Telecom Industry before becoming a business consultant. He is now semi-retired; working part time for two of his past consulting clients. During his 25 years in telecom he worked in Canada, Europe, Asia and the US rising to GM of a $1B business. Later as a consultant he helped start 5 new businesses in Maryland and volunteered as an advisor to state funded early stage businesses. As a consultant he focused on strategic planning, raising funds, bringing products to market, managing cash and intellectual property (filing and licensing). Steve holds a BSc in physics from Manchester University, UK.