Financial Plan (First Draft)

This week, you will build your draft financial plan. You will need to do it for the first two years. Use the Comparable method (please refer to chapter 9 of your textbook for further information).

For this week, complete the following:

• Complete a list of key financial assumptions that drive your revenue projections, cost of goods sold and operating expenses. Identify 2-3 companies to benchmark (financial information can be found on their annual reports which are public). Include 3 APA style references for your assumptions.
• An opening day balance sheet (your balance sheet MUST BALANCE)
• A monthly cash flow statement for years 1 and 2
• An income statement for years 1 and 2
• A chart or graph showing growth from start-up through year 2

Assumptions

Company name: Assumptions for Financial Projections Description Value Comment Revenue Assumptions Unit Sales Price per unit sold Overall Market Size potential customers Target Market Size potential customers in niche Year One Sales Projections units sold Year Two Sales Projections units sold Year Three Sales Projections units sold

Balance Sheet Company name By: Your name Balance Sheet Year 1 ($) Begin Year 1 Year 2 Year 3 Year 4 Year 5

Cash flow statement

Company Name By: Your name Cash Flow Statememt Year 1 by Months Cash Flow Statement Year 1 Year 1 by Months Estimated Annual Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 Projection

Income Statement

Company Name By: Your name Income Statement Years 1 to 5 ($) Year 1 Year 2 Year 3 Year 4 Year 5 References: Benchmark Companies: