Online training session provided by Lebanon Peer-to-Peer Consultant on Financial planning/ Projections, which is considered the most important element of the startup’s business planning. Lenders and investors will review it in detail. Developing your financial plan helps you set financial goals for your startup and assess its financing needs. including:
- Profit & loss projection/ income statement/ P&L: A three-year profit and loss projection will expect your business’s financials to change substantially after the first year.
- Cash flow projection: The cash flow statement tracks will detail when you need to spend money on things such as inventory, rent and payroll, and when you expect to receive payments from customers and clients. The cash flow projection takes these factors into account, helping you budget for upcoming expenses so your business doesn’t run out of money.
- Projected balance sheet: A balance sheet subtracts the company’s liabilities from its assets to arrive at the owner’s equity.
- Break-even calculation: The break-even analysis projects the sales volume you need in order to cover your costs.
