How Much Money Does Your New Venture Need?
JAMES MCNEILL STANCILL
Executive Summary
ENTREPRENEURS SHOULD COMPILE a financial forecast that includes three elements: an income statement, a balance sheet, and a cash flow statement. Forecasts should look ahead five years and include three scenarios: a most likely, a most pessimistic, and a most optimistic.
Key estimates for putting together the income statement are:
• Sales, which should be based on convincing market research.
• Cost of goods sold, which can involve complicated modeling or may be figured as a percentage of sales.
• General and administrative expenses, which must be based on a detailed schedule for all items.
• Selling expenses, which also require a detailed schedule.
Key estimates ...
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