Business Administration - Entrepreneurship and Small Business EBM530 Lecture Notes - Lecture 7: Income Statement, Worst-Case Scenario Series, Cash Flow
23 Apr 2018
School
Professor
Document Summary
Just because you open the doors to your business, doesn"t mean customers will instantly start clamoring to do business with you. You have to find them and convince them to buy. Remember, from the day you open to some point in the future, your revenues will be less than your expenses. Once you guess at your assumptions, work them through spreadsheets to create forecasts. Heck, how many months is it from the time you open until you get paid for your first transaction? (if you are selling b2b you need to consider 30-60-90-120 days after invoicing before you see the cash!) You need to have enough money (i. e. investment) to cover all your. Cummulative expenses until such time that revenue exceeds expenses. Risk management is all about answering the above questions. The financials is one section of the business plan, but in the real world when you pitch investors, confidence in the financials is everything!
