In this session the goal is to build a financial model of how the business will operate, showing where revenues will come from and what costs will be incurred to support those revenue streams. Using the approach developed earlier in this section, you can calculate your breakeven and so have a realistic picture of the feasibility of the business operation.
Note: If the table below depicts zero’s (0) in each field, it means that you have not completed the prior exercise (6f: Profit/Loss Forecast). Please return to that exercise and complete the worksheet. Information entered into that worksheet will be automatically entered into the Financial Forecasting Model below. If you need help with this process, consider contacting any of the volunteer business counselors introduced at the beginning of this course. Your ability to develop an understanding of how to forecast will serve you well in most all aspects of financial management and so it is worth the effort.
There are no right or wrong answers. Think about your answers and talk them over with someone else - your partner, mentor or counselor. Using this as a basis for discussion can often uncover other issues affecting the business development process.
Please fill in questions proceeded by a double asterisk and marked in red
