1 / 24

Entrepreneurship I

Entrepreneurship I. Class #11 Finances: VOSG II. VOSG 1 reaction. 1 st person Page numbers Executive summary Management sectoin Market research Pick your market segement(s) Survey those not others Technology in search of a market Barriers to entry. Finances – VOSG II. Finances goal.

ebedwell
Télécharger la présentation

Entrepreneurship I

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Entrepreneurship I Class #11 Finances: VOSG II

  2. VOSG 1 reaction • 1st person • Page numbers • Executive summary • Management sectoin • Market research • Pick your market segement(s) • Survey those not others • Technology in search of a market • Barriers to entry

  3. Finances – VOSG II

  4. Finances goal • Need to understand: • Money coming in • Money going out • Money sitting there • How you are going to fund venture • Value creation

  5. Financial statements • GAAP • FASB • SEC • Weird but true!

  6. Three statements Income Statement Balance Sheet Statement of Cash Flows

  7. Income statement • Results of operating activities for a specified period of time • Revenues • Expenses • COGS • SG&A • Other • Net income = revenues - expenses

  8. Blue, Inc. income statement

  9. Income statement • Revenues - total number of products/services you realistically expect to sell each time period, month, quarter, year. • Cost of sales (or cost of goods sold: COGS) - direct costs of selling all products/services for that time period. Includes direct labor, materials, no SG&A (selling, general, and administrative).

  10. Gross profit - subtract total cost of sales from total net revenues. • Gross profit margin - percentage of total sales. Divide gross profits by total net sales. • SG&A - all other expenses. • Net profit (before taxes) - subtract total expenses from gross profit • Net margin - divide net profit by total sales

  11. Breakeven analysis • Variable costs+fixed costs=total costs • Plotted against revenues based on price and volume

  12. Breakeven at $1 per unit Number of Units

  13. Breakeven at $.75 per unit Number of Units

  14. Fixed Administrative Most salaries for a start up are fixed Variable Directly related to production Can be percentage of some fixed costs Total costs

  15. Balance sheet • Snapshot in time • Short term/long term • Assets - PP&E, FF&E = big stuff • Liabilities - what you owe • Shareholders equity • Owner’s claim on assets • Capital • Retained earnings

  16. Balance sheet • Assets reflect investment decisions • Liabilities and equity reflect financing decisions • Thus, assets = liabilities + equity • So, equity = assets - liabilities

  17. Blue, Inc. balance sheet

  18. Blue, Inc. balance sheet cont.

  19. Blue, Inc. balance sheet cont.

  20. Balance sheet summary

  21. Cash flows • Net cash flows for specific period of time. • Operating (day to day) • Investing (for future) • Financing (how you paid)

  22. Blue Inc. - cash flows

More Related