Financials

View the Sample Financials

Download the Sample Financials Spreadsheet

Download the Earnings Spreadsheet Notes

Key Financial Information

  • Financial Statements – Current & projected
  • Earnings – Historical & projected
  • Capital Spending Budget
  • Cash Flow – Annual & monthly
  • SWOT Analysis

Current Financial Statement

  • Assets owned – Detailed list
  • Liabilities owed – Detailed list
  • Net worth – Assets minus liabilities
  • Liquidity – Coverage for the unexpected
  • Leverage – Green light, orange light or red light?

Projected Financial Statement

  • What is your net worth after changes are implemented?
  • How much greater is your leverage?
  • New liquidity position
  • Room for adversity?

Historic Earnings

  • History of gross income
  • History of net income
  • Consistent or varied earnings?
  • Discuss any “special events” that affected historic earnings.

Projected Earnings

  • Project earnings for the next 3 to 5 years depending upon the scope of the changes planned.
  • Note whether your assumptions are “most likely”, “best case” or “worst case”

Capital Spending Budget

  • How much do you plan to spend?
  • What do you plan to spend it on?
  • Source of funds for spending?
  • Cost overruns budgeted?

Cash Flow – Annual Review

  • Annual cash flow review allows you to see whether projected business earnings are adequate to cover debt service, living needs and capital improvement needs for each year projected.

Cash Flow – Monthly Analysis

  • Monthly cash flow analysis lets you see if there will be certain times of the year where cash flow is inadequate and liquidity or operating loans needed to be tapped to cover these shortfalls.

SWOT Analysis

  • Strengths – What are the strengths of this venture to capitalize on?
  • Weaknesses – What are the weakness of this venture to mitigate/minimize?
  • Opportunities – What are the opportunities in the current and future market?
  • Threats – What threats are out there for this venture – i.e. competition opening down the road, etc.?

Financial Discussion Summary

  • What do the numbers tell you?
  • What do the numbers tell the reader?
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