Learn how to build your financial plan from the bottom up. Learn the basics about startup finances, including knowing how to forecast revenue and growth, understanding different types of financial models, and identifying what metrics and milestones you should track.
https://www.marsdd.com/entrepreneurship-101/
2. Page 2
ATTRIBUTES
OF
A
GOOD
FORECAST
• Robust
financial
model
– Balance
Sheet
– Income
Statement
– Cash
Flow
(monthly)
• Flexible
for
key
variables
to
allow
for
sensitivity
analysis
• Clearly
stated
assumptions
and
verifiable
support
for
same
– Industry
benchmarks
• Growth
rates
(ramp
up/steady
state)
• Profit
margins
• Turnover
ratios
(e.g.
inventory/accounts
receivable)
• Industry
specific
critical
success
factors
(subscriber
rates/page
views
etc.)
– Underlying
contracts/purchase
orders
– Strategic
partnerships
– Supplier
quotes
3. Page 3
ATTRIBUTES
OF
A
GOOD
FORECAST
• Realistic
and
internally
consistent
assumptions
• Line
item
detail
– Revenue
verticals
• Contingency
provision
• Sources
and
Uses
of
Funds
– Operating
expenses
– Capital
expenditures
– R&D
4. Page 4
SOURCES
OF
INFORMATION
• Technology
incubators/Innovation
hubs
– MaRS Market
Intelligence
• Peers/networking
– Serial
Entrepreneurs
– Angel
Groups
– Financial
Advisors
– Venture
Capital
Firms
– Industry
Participants
• Internet
– Government
websites
(e.g.
Statistics
Canada)
– Google