Hi entrepreneur!
Welcome to a new Elevatorfy session.
In today’s class we’re going to explain you how to make your own financial plan.
What should you know after this class?
Financial plan.
- It allows you to know your financing needs.
- Know the economic viability and possible returns and conversions.
- Analyse the minimun valume of sales needed to start making money, to break even.
- It allows you to study the possible factors that can affect your startup in a + or – way.
- It consists of planing, collecting and using the company’s funds efficiently.
- If there are surplus funds, the finance function will seek profitability.
- If there is a shotfall of funds, it will have to seek funding.
Financial statements.
- A company’s financial statements are accounting documents that record its economic activity.
- Balance sheet: exhaustive analysis of the startup’s financial situation and determine what the startup is worth, how much it owes and how much it has.
- P&L (income statement): forecast future results including the volume of sales and other revenues and the costs necessary to deliver your product and services.
- It explains the cash inflows and outflows of a company in a given period. It is an indicator that shows the liquidity of a company.
Investment.
- It is not expenditure.
- Assets: patents and trademarks, right of transfer, land, building, facilities, machinery, tools, furniture, IT elements, bonds and/or deposits, stocks, raw materials, costumers/receivables, public administrations, advances, treasury, and leasing.
Funding.
- Sources of funding: equity capital, family friends and fools, venture capital subsidies, aids, reservations, credits/loans.
Costs.
- Fixed costs are those expenses that do not vary, even if the volume of business activity of the startup does.
- Variable costs, however, do vary when the volume of business activity varies.
Break even.
- It is reached when the total expenses of a startup equal the total revenues.
- It is used to quickly find out the viability of a company.
Responses