Financial Analysis

BusAccel walks the entrepreneur through the three basic reporting tools:

        - Cash Flow Statement
        - Profit & Loss Statement
        - Balance Sheet

Of the three, the cash flow statement is the most commonly ignored by entrepreneurs. BusAccel advocates its regular use, because understanding the timing of when you make and spend cash is as important as how much you make and spend. A clear understanding of cash flow is critical in determining how much money the business needs to operate and heavily impacts the capital raise target.

A thorough analysis of historical and pro forma cash flow, profit & loss and balance sheet financial reports reveals the primary revenue and cost drivers. Careful attention is taken to ensure that the marketing assumptions in the financials tie to the revenue model in the marketing plan.

Whenever possible, entrepreneurs are encouraged to employ financial models that minimize fixed overhead costs and enable costs to be variable with production and sales. Companies that successfully do this scale better and may be able to grow more quickly.