Sales Forecasts / Balance Sheets etc..

Hi Lee, I spent so much time thinking about what your thinking about when looking at starting up in business. The only subject I would concentrate on is what your costs are going to be, and make sure that you account for every cost you can think of.Then ask someone else in a similiar line of business and ask them too. If you were to ask many start ups about their forecast of sales they will tell you that is just does not add up when you start trading. I forecast that I would get an installation every month which I hoped would contribute to my running costs but the fact is that I didnt even get one customer for 4 months...so much for the forecast. If I were you dont go mashing your head full of figures that arent real and concentrate on other things such as market research, suppliers,running costs. Hope you get there in the end. Regards Justin Thompson
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VISUAL SURVEILLANCE SOLUTIONS LTD

Get an accountant. Mine costs me £250 a year and leaves me to concentrate on customers, marketing etc... Nick Disappointed by the performance of your website? Apply for your FREE Website Health Check and find out why. http://members.aol.com/all4yourpc/health.htm
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Dear Lee First, we have produced a number of free models that you are welcome to download and use for your own project: http://www.innovateur.co.uk/models.html Investors, banks, etc., will always want to see a plan and projections of how you see your business developing as this is the only way to effectively communicate what you are trying to do and to demonstrate to them that you understand the financial dynamics of your project. Secondly, as to a brief explanation of how the financial statements work in layman’s terms for the benefit of anyone who is wondering: It takes three statements to make clear the financial position of the company – all these three statements interact: 1. The Balance Sheet: What The Company Owns The Balance sheet is a statement of what the company owns (Assets), what it is owed (Debtors), and what it owes (Creditors / Liabilities). It also shows how that balance of assets and liabilities (referred to as Net Assets) has been paid for (Financed by). This can be long-term borrowings, investment, and from profits (losses) it has made in the past. 2. Profit & Loss Account: Trading Activities and Performance This is an indicator of the operating performance of the company over a specific point in time. It records income and expenses – not when they are paid, but ‘matches’ these to when they are achieved or incurred. Assets that have long term life are also ‘charged’ over that time to the P&L account as they reduce in value. This is known as depreciation. 3. Cashflow Statement: The Movement of Cash As it implies, this is the actual movement of cash – when payments are received from sales made, and when expenses incurred are actually paid, when long term assets are bought or sold, and when investment or loans are received into the business. The three statements interact to provide an overall picture of a business. In terms of just one book to help you through all aspects of business planning, I would Suggest Colin Barrow's 'Business Plan Workbook'. It is excellent. You can buy it at any bookshop or we have it in the bookshop on our site should you want to get it there. Good luck all. Innovateur Venture Network Resources for High Growth Potential Ventures in Science & Technology http://www.innovateurs.com
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Innovateur
Venture Resources for High Growth Potential Projects
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