Definitive Business Plan, Second Edition, The

Producing the paper

However you choose to approach it you ultimately arrive at a balance sheet and cash flow. You can tie these in with the figures shown for Tetrylus in Chapters 8 and 9 to see where the numbers come from. The share capital is shown as a ridiculously low figure to help you identify that loans in the balance sheet equate directly to the net deficit in the cash flow forecast. Let me explain how this was derived.

Off balance sheet liabilities In Chapter 9 you looked at ways that leasing provides finance that may not be recorded on the balance sheet. There are other similar funding tricks, such as selling assets or inventory with ...