****My business for this assignment is to open my own Photography Business specializing in newborn photography****
Financial forecasting is important because it adds discipline to the way an entrepreneur thinks about the venture. Forecasting helps determine cash needs and timing of these needs. It also helps the value of the venture. Thus, the financial forecasting is critical to the success of your business plan.
The cash flow forecast is arguably the most important part of the plan, but each of the other documents is important from a planning perspective. There are three sections in a financial plan i) the Starting Balance Sheet, ii) the Pro-Forma (or Forecast) Income Statement, and iii) the Cash Flow Forecast.
Submit a two to three pages paper explaining your approach and the steps you have taken in order to build the forecast of the short, medium, and long term financing needs.
1) What might the sources of financing of your chosen plan be? Please Explain.
In the course of preparing your paper, you will probably want to think about, among other things, the points such as:
-Sources of financing (e.g., angel financing)
-Preparing pro-forma financial statements for lenders (e.g., Balance Sheet and Income Statement)
-Describe methods of forecasting the future financial needs of the enterprise
-Evaluate a set of assumptions regarding investment required, projected sales, profit margins and credit on the financial projections of a business firm© BrainMass Inc. brainmass.com August 18, 2018, 2:12 am ad1c9bdddf
Since there is a short deadline for the requested response, here is a brief answer:
In order for you write your paper, you will need to use a financial model that will tell a story about what is your business going to do, how your business is going to do it and how your business is going to be reflected in the financials.
You will need to ...
Financial forecasting - essential to the success of a business plan.