Smart Start II, I completed my first official Forecasting Cash Flows class.
A a part II of a workshop sponsored by the Iowa Small Business Development Center.
A couple key words from Benjamin Shlaes:
Balance Sheet, Forecasting Sales, Forecasting Expenses, Pre-Opening Cash Needs, Projected Operating Expenses, Monthly Cash Flow Projection, Depreciation (which BTW needs to be in its own category in your pro forma income statement and pro forma cash flow statement). It's important to include In Loan and Principal Pmt Loan info).
I know that I don't want to ever have to do a Loan Equity Injection or a Term Loan nor a LOC- I would rather cut my salary.
I enjoyed the accounting sheet, my Break-Even Analysis Worksheet and I thinking everyone should know their Contribution Margin Percentage but more important... MOS, not to confuse with SOS.. Margin of Safety...
I learned also about this poor guy who had signed some papers with a partner and purchased some equipment, apparently he hadn't accounted for the depreciation of that equipment and while the seller was able to claim it on its taxes this ... anyway I may not be able to tell the story well, but the buyer got screwed.