Final Project - Pro Forma

Entrepreneurial Finance Final Project Description

As the culminating project for this course, you will complete a set of pro forma financial statements for a hypothetical business model. As stated, before in lecture, the business does not need to be technology-focused but should have an innovative approach to solving the problem.

you will come up with a business concept, define a list of assumptions, prepare a Pro Forma Income Statement, Pro Forma Balance Sheet, and Pro Forma Statement of Cash Flows for the next 5 year projections of the business.

The financial model will include the following aspects of the business and will support the company’s decisions for requesting certain amounts of capital you are raising to make the business model viable, scalable, and repeatable. The final work product will be submitted as an Excel Workbook and include the following tabs.

Name of Tab Brief Description Points List of Assumptions These are the general business

assumptions you are making prior to opening and will include things like: payroll tax rates, hours of operation, inventory turnover, etc.

25

Pro Forma Income Statement This tab will include your sources of revenue and costs associated with generating that revenue

75

Pro Forma Balance Sheet This tab will include a five-year projection of your assets, liabilities, and owners’ equity at the end of each fiscal year

75

Headcount Details This tab will outline how many employees the company will have and how you plan to expand operations and what effect this will have on the income statement and balance sheet

25

Pro Forma Statement of Cash Flows

This tab will show a reconciliation of initial cash to support the business along with the expected flow of cash inflows and outflows for the business

25

Presentation Each team will pitch their idea and explain their financial model to Prof B who will make an investment of $5 M to the venture

25

TOTAL 250