You decided to create your own Construction Company one day. Below is a list of initial assignments: Pick your partner(s) for your company. During the first hour, these items will be addressed by you: What did you name your company? What is your specialty? How do you intend to reach your market? How are you going to raise the $$? 1. MONTH TO MONTH FORECAST STATEMENT 1. Create your month to month forecast statement 2. This is a "guess" but you aren't going to start by having a million dollars income in your first months. 3. Consider using a percentage of your start-up capital as a basis of your estimate. 4. Consider, for a start as your first year, to estimate your income at 30% of your capital for each month. 5. Once you do your first month's estimate, continue that amount forward for the first year. 6. Use the Financial Benchmarking for the Construction Industry standards ratios for costs, profits, etc. and see how well you expect to perform during the first year. 7. What are you predicting in growth of gross and net income for the first year? 2 ADD SOME ACTUAL SALES NUMBERS 1. Month 1- $44,000. Month 2 - $96,000 (runs into month 3) 2. Month 3 - $14,000. Month 4 - $62,000. Month 5 - $162,000 3. (runs into month 6) Month 6 - $00.00 Month 7 - $88,000. 4. Month 8 - $51,000 Month 9 - $92,000 Month 10 - $30,000 5. Month 11 - $62,000 Month 12 - $99,000 3. FINANCIAL ANALYSIS 1. Compile annual Balance Sheet (adding to opening day balance sheet) 2. Create annual financial statement You decided to create your own Construction Company one day. Below is a list of initial assignments: Pick your partner(s) for your company. During the first hour, these items will be addressed by you: What did you name your company? What is your specialty? How do you intend to reach your market? How are you going to raise the $$? 1. MONTH TO MONTH FORECAST STATEMENT 1. Create your month to month forecast statement 2. This is a "guess" but you aren't going to start by having a million dollars income in your first months. 3. Consider using a percentage of your start-up capital as a basis of your estimate. 4. Consider, for a start as your first year, to estimate your income at 30% of your capital for each month. 5. Once you do your first month's estimate, continue that amount forward for the first year. 6. Use the Financial Benchmarking for the Construction Industry standards ratios for costs, profits, etc. and see how well you expect to perform during the first year. 7. What are you predicting in growth of gross and net income for the first year? 2 ADD SOME ACTUAL SALES NUMBERS 1. Month 1- $44,000. Month 2 - $96,000 (runs into month 3) 2. Month 3 - $14,000. Month 4 - $62,000. Month 5 - $162,000 3. (runs into month 6) Month 6 - $00.00 Month 7 - $88,000. 4. Month 8 - $51,000 Month 9 - $92,000 Month 10 - $30,000 5. Month 11 - $62,000 Month 12 - $99,000 3. FINANCIAL ANALYSIS 1. Compile annual Balance Sheet (adding to opening day balance sheet) 2. Create annual financial statement
