Feasibility Study
Practical Management for Career Readiness
Essentials of Entrepreneurship: Thinking & Action Module 2
with David Standen, D.B.A
Entrepreneurial Finance What’s Next?
Feasibility Study
Feasibility Study Income Statement
Feasibility Study Income Statement Cash Flow Statement
Feasibility Study Income Statement Cash Flow Statement Balance Sheet
Feasibility Study Income Statement Cash Flow Statement Balance Sheet Maybe; Maybe Not
Cash Flow Statement Do this Monthly
Cash Flow Statement Do this Monthly Shows cash on hand How much cash do we need? When do we need it?
Cash Flow Statement Do this monthly Shows cash on hand How much cash do we need? When do we need it?
When will we break even? From an investment perspective
Cash Flow Statement Do this monthly Shows cash on hand How much cash do we need? When do we need it?
When will we break even? From an investment perspective Operational break even
Income Statement Done Monthly
Income Statement Done Monthly Profitability
Income Statement Done Monthly Profitability Control expenses
Income Statement Done Monthly Profitability Control expenses Scenario Evaluation
5-Year Projected Net Income $200,000,000 $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0
Y1
Y2
Y3 Base Case
Best Case
Y4 Worst Case
Y5
How Much?
How Much? Funding sought = What percentage of the company?
How Much? Funding sought = What percentage of the company? Cash Flow Statements and Income Statements quickly show this information
Operating Cash Flows 25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0 1
4
7
10
13
16
19
22
25
28
31
34
37
40
43
46
-5,000,000 Base Case
Best Case
Worst Case
Linear (Base Case)
49
52
55
58
61
Essentials of Entrepreneurship: Thinking & Action Module 2
with David Standen, D.B.A
Entrepreneurial Finance What’s Next?
Feasibility Study
Feasibility Study Income Statement
Feasibility Study Income Statement Cash Flow Statement
Feasibility Study Income Statement Cash Flow Statement Balance Sheet
Feasibility Study Income Statement Cash Flow Statement Balance Sheet Maybe; Maybe Not
Cash Flow Statement Do this Monthly
Cash Flow Statement Do this Monthly Shows cash on hand How much cash do we need? When do we need it?
Cash Flow Statement Do this monthly Shows cash on hand How much cash do we need? When do we need it?
When will we break even? From an investment perspective
Cash Flow Statement Do this monthly Shows cash on hand How much cash do we need? When do we need it?
When will we break even? From an investment perspective Operational break even
Income Statement Done Monthly
Income Statement Done Monthly Profitability
Income Statement Done Monthly Profitability Control expenses
Income Statement Done Monthly Profitability Control expenses Scenario Evaluation
5-Year Projected Net Income $200,000,000 $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0
Y1
Y2
Y3 Base Case
Best Case
Y4 Worst Case
Y5
How Much?
How Much? Funding sought = What percentage of the company?
How Much? Funding sought = What percentage of the company? Cash Flow Statements and Income Statements quickly show this information
Operating Cash Flows 25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0 1
4
7
10
13
16
19
22
25
28
31
34
37
40
43
46
-5,000,000 Base Case
Best Case
Worst Case
Linear (Base Case)
49
52
55
58
61
