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.
My head is full, we went overtime tonight in class, plus I had questions after class. The instructor was awesome, he is MBA, CPA. He is retired now but his hobby is teaching Accounting and I can see why. I thanked him about the class. I think now the I learned today is going to help me while I am reading these.
This Second was my first Small Business Accounting Class for $15, I learned so much for this session. I wish everyone would take this class, not just for opening your own business but just thinking about your life as a business venture is quite an outlook and I was glad to be there among the 7 students. (BTW where were the women I was the only one!)
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