What is Financial Forecasting Model

Hello everyone. Today, we are going to talk about the Financial Forecasting Model within the framework of business creation. You are embarking on an entrepreneurial adventure. You may need external funding to launch your project.

You might have the right idea for you walked, but you may not know yet if your business will be profitable or not. I am going to give 6 models which you need to fulfill.

Model No.1:- The income statement:-

The income statement is the first document to produce the funds. It is up to the financiers to do updates on recipes, and expenses to be incurred during the first three years of the life of the company.

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They help you to determine the outcome of corporate profits or losses each of the figures. They indicate as soon as the translation of sales targets that you are able to evaluate.

Be careful, if out of the first three years of the life of the company, you do not do benefits depending on your project. Maybe we need to review the whole project

Model No.2:- The interim balances of management:-

It is another way to analyze the result of the company. We cut them into several important indicators to assess the performance levels of your company.

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Model No.3:- The initial financing plan:-

In the first three years, the financing plan allows us to measure the financial feasibility of your business creation. It responds to the double question. i.e.

• What is the capital needed to launch my project

• How to bring them together again.

Each of the needs indicates the encrypted translation of your project

Model No.4:- The cash flow plan:- A cash flow plan allows you to calculate the difference between your expenses and your income month after month. You can anticipate the moments of the year with this.

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Model No.5:- The balance sheet:-

The balance sheet is an accountant document that you can carry out each year. You can say, it is a photograph of the assets of your company. It is a necessary resource that has enabled heritage acquisition.

This document is very important because it allows showing the consistency between the investment, you made and the activity of your company.

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