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Financial forecasting is important because it adds discipline to the way an entrepreneur thinks about the venture. Forecasting helps determine cash needs and timing of these needs. It also helps the value of the venture. Thus, the financial forecasting is critical to the success of your business plan.

The cash flow forecast is arguably the most important part of the plan, but each of the other documents is important from a planning perspective. There are three sections in a financial plan i) the Starting Balance Sheet, ii) the Pro-Forma (or Forecast) Income Statement, and iii) the Cash Flow Forecast.

describe your approach and the steps you have taken in order to build the forecast of the short, medium, and long term financing needs.

1) What might the sources of financing of your chosen plan be? Please describe.

In the course of preparing your paper, you will probably want to think about, among other things, the points such as:

-Sources of financing (e.g., angel financing)

-Preparing pro-forma financial statements for lenders (e.g., Balance Sheet and Income Statement)

-Describe methods of forecasting the future financial needs of the enterprise

-Evaluate a set of assumptions regarding investment required, projected sales, profit margins and credit on the financial projections of a business firm

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M926883

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