| A Few Final Words | ||||
| Introduction
Finding Financial Information Preparing
the Financial Statements |
 Phew! If you’ve gotten this far, chances are that you’re now most of the way through preparing your VOSG II. Now that you can see the relationship between revenue and costs, you can determine how much capital you will need each step of the way to maintain positive cash flow. Last, but not least, in your income and cash flow statements, you should include the amount and timing of cash investments into your company, if applicable. A few final words: PREPARE THE GRAPHS LAST, and RESIST ANY URGE TO TINKER WITH THE NUMBERS YOU CHOOSE TO MAKE THE IDEA LOOK BETTER. Such
tinkering can be tempting, especially if one sees a huge valley of
negative revenues before the business starts to break even, or if the
business doesn’t seem to generate enough cash. That’s okay. Keep in
mind that this is a Venture Opportunity STUDY Guide; the benefit of
conducting a study from an objective viewpoint before starting the real thing is precisely that
you can walk away from the idea if it isn’t a license to print money, and everyone
will still feel good about it. And if it still looks like a license to print money even after you pinch
yourself a few times, you'll know and be able to show that it's an idea worth pursuing :) |
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