Why Construct a Pro Forma?
Would you drive over a tall bridge and note know its ability to support you?
Would you drive over a tall bridge and note know its ability to support you?
Would you drive over a tall bridge and note know its ability to support you?
We need to convince ourselves and our founding team that our idea for a business can make a profit and be self-sustaining
Transparency
Would you drive over a tall bridge and note know its ability to support you?
Would you drive over a tall bridge and note know its ability to support you?
Exposing your thinking in strategic financial terms that go to a reasonable level of detail is a way to be convincing & develop trust
Compete for Capital
Sensitivity Analysis
Sensitivity Analysis
Realize that we are in competition for capital as well as customers and that the “selling” required to get capital is as important as the marketing we will use to get customers
Sensitivity Analysis
Sensitivity Analysis
Sensitivity Analysis
By varying assumptions to ascertain which sets of values most heavily affect profit and cash