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Financial Report

Finance

No entrepreneurial odyssey should commence without a clear financial strategy. It’s not just about numbers; it’s about envisioning the future of your product in the real world. Dedicating time to thorough research into potential market demand, crafting realistic sales forecasts, calculating costs, and understanding the initial investment required, transforms your business idea from a dream into a viable plan.

This page is designed as a launchpad for your financial acumen. Here, you will find an arsenal of resources, invaluable links, and expert tips to help you navigate the complexities of creating your financial projections. 

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STEP 1: BUSINESS MODEL & TARGET CUSTOMER

The first step on your financial planning journey begins with defining your business model and identifying your target customer. Understanding the core of how your business aims to generate value and income is pivotal. It sets the stage for all subsequent financial planning and projections.

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STEP 2: SALES FORECAST & COST ANALYSIS

With insights from your market research, develop a sales forecast. This involves estimating how much of your product you can realistically sell. Every entrepreneur also needs a clear picture of the costs involved in launching and running their business. Break down your startup costs, operational expenses, and cost of goods sold (COGS).

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STEP 3: INITIAL INVESTMENT

Determine the initial investment required to get your business off the ground, such as capital expenditures.  Knowing your financial needs upfront will help you secure funding and plan for sustainable growth.

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STEP 4: DECIDE ON YOUR CAPITAL STRUCTURE

Choosing the right funding mix is more than a financial decision; it's a strategic move that shapes your business's path. It impacts everything from your company's valuation to its operational freedom and growth potential. A well-thought-out funding strategy aligns with your business goals, market position, and the financial projections laid out in your plan.

STEP 1: BUSINESS MODEL & TARGET CUSTOMER

Every successful business plan starts with a clear picture of its target customer. Who are they? What do they need? How does your product or service fit into their lives? Identifying your target customer shapes your marketing strategy, influences your product development, and informs your pricing. It’s the compass that directs all other aspects of your financial planning.

Learn all about it in our previous page : BUSINESS MODELS 

STEP 2: SALES FORECAST & COST ANALYSIS

A sales forecast is your projection of the revenue your business will generate over a specific period. This step requires you to analyze market trends, understand your competition, and realistically assess your sales capacity. Your sales forecast is a critical component of your financial plan, as it influences your budgeting, hiring, and expansion strategies.

In addition to that, a meticulous cost analysis forms the backbone of any thriving business. It's the process that illuminates the financial realities of launching and operating your venture. By dissecting your expenses into clear, manageable components, you equip your business with the strategic advantage to navigate through the competitive landscape efficiently and effectively. 

Here are some resources that might help you:

Quick guide: how to create a killer sales forecast for your startup?

Estimating Startup Expenses Tips for Calculating Your Costs as a Young Company

Watch this video:

STEP 3: INITIAL INVESTMENT

Before your business even opens its doors, there are costs to be incurred — these are your startup costs. They encompass all expenses required to get your business off the ground.

 

This includes, but is not limited to:

  • Legal fees for business registration

  • Licensing and permits

  • Branding and marketing materials

  • Initial inventory or raw materials

  • Equipment and technology investments

  • Office or retail space (lease down payments, renovations)

  • Website development and initial SEO strategy

Cataloging these expenses gives you a clear view of the financial threshold needed to launch. It’s crucial not only for securing funding but also for planning your runway until the business becomes profitable.

How to calculate business start up costs

STEP 4: DECIDE ON YOUR CAPITAL STRUCTURE

Choosing the right funding mix is more than a financial decision; it's a strategic move that shapes your business's path. It impacts everything from your company's valuation to its operational freedom and growth potential. A well-thought-out funding strategy aligns with your business goals, market position, and the financial projections laid out in your plan. It ensures you have the resources to execute your vision, overcome challenges, and seize opportunities for growth.

FinanceWorkshop
Online Meeting

Need more help?
Join our Online Finance Masterclass : April 4, 15:00 CET

 

LEARN HOW TO PROJECT YOUR SALES & EXPENSES
USING THE DISCOUNTED CASH FLOW MODEL

In order to learn how to practically apply this knowledge and generate financial projections, we have curated a financial masterclass where you can learn how to present your financial data. 

The workshop will be held online on Microsoft Teams on April 4th at 15:00. We understand that due to the time difference, some teams will not be joined, thus this call will be recorded and shared on this web page. 

As asked by the lecturer, we kindly ask you to do some preparations, to best familiarise yourself with the context of the lecture. 

Please kindly watch the video below, prior to the call (30 - 45 min):

NEED MORE HELP?
SIGN UP FOR INDIVIDUAL TEAM COACHING SESSIONS:

In the 2024 SHC edition, we present you with a unique opportunity for individual team coaching. We can offer 30-minute tutoring sessions to some teams, between the 10th of April and the 5th of May.

 

The coaching sessions are dedicated to the Discounted Cash Flow. That is the model that was introduced earlier on this page and will be further explained in the Financial Workshop on the 4th of April. 

 

If the Discounted Cash Flow is something you still struggle with, please kindly use the link below to sign up for an individual coaching session. The number of coaching sessions is limited and is provided on a first-come, first-serve basis.

The coaching is provided by NumberBright.

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