Small Business
Financial Forecasting
This four-hour course provides an overview of the financial model, historical data, and capital required as well as forecast information and the nuts/bolts of the cash flow plan. Course curriculum includes an analysis of research required to substantiate claims of growth. The course will provide an overview of all financing forecasting required in a business plan to gain access to capital. This includes:
- Financial Performance Review (historical review)
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This includes a three-year trend of revenue and profitability (Most banks will require three years – if you have less, and then provide whatever is available). Tax returns are required for an ongoing business and personal taxes for two to three years as well. Current financials are needed as well including balance sheet, cash flow, and income statements.
- 12-month profit and loss performance projection
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The format should include revenue minus costs of goods/services which provides a gross profit. It should then be followed by fixed, variable, and payroll expenses.
- 5-Year Profit & Loss Forecast
- The driving force and purpose of a five-year forecast is the growth of revenue and the relationship between growth and expenses. The first year should be a summary of the 12-month forecast. Subsequent years should show a reasonable, conservative growth rate based on solid data substantiating the claims.
- Cash Flow Forecast
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The cash flow forecast will enable the capital providers to foresee shortages in time to do something about them—perhaps cut expenses or perhaps negotiate a loan. The cash flow projection is just a forward look at your checking account. Your cash flow will show you whether your working capital is adequate.
- Financial Model (Break-even Calculation)
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The financial model should take into account the revenue, minus cost of goods, expenses with a forecasted profit based on a “best-case scenario” that gives the reader a good indication of how the financial model of the business works.
- Assumptions
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Assumptions are explanations with supporting data and research (not guessing). It should be outlined as a “bullet-point” explanation of relevant assumptions for receivables, sales, average day’s outstanding, inventory levels, debt levels, assets, reserves and amortization schedules.
- CCapital Requirements
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Assets to be acquired are important as well as non-asset single purchases, consumables, equipment, marketing expenses, and other working capital requirements. Most often benchmarks and milestones with stages of cash expenditures should be outlined as well.
Dates Courses Offered:
October 12, 2009 6:00pm - 9:00pm OR October 13, 2009 1:30pm - 4:30pmRadisson Hotel
1211 East Garvey Steet
Covina, CA 91724
626-915-3411
Who is teaching this class?
Sponsors
