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Agenda
1. Small Business Development Center (SBDC)2. Business Plan Overview and Common
Mistakes3. Financial Statement Review4. Financial Template for the Business Plan
• But first…..a fun opportunity….
Georgia SBDC Network
• FINISHED FILES ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY COMBINED WITH THE EXPERIENCE OF MANY YEARS
Georgia SBDC Network
Georgia SBDC Network:
What We Do for Georgia’s Businesses!
www.georgiasbdc.org
In Partnership with the U.S. Small Business Administration
GEORGIA SBDC NETWORKTo enhance the economic well-being of Georgians by providing
a wide range of educational services for small business owners and aspiring entrepreneurs.
University of Georgia SBDC
Georgia State University SBDC
University of West Georgia SBDC
Kennesaw State University SBDC
Clayton State University SBDC
Georgia Southern University SBDC
Valdosta State University SBDC
GEORGIA SBDC NETWORK• What we do
– Consulting• Free, Confidential one-on one
– Continuing Education• 2013 over 323 programs with 3,592 attendees
– Client Success over past 5 years (2008-2013)• $299 million through loans and equity financing• $7.2 billion in sales• 1,427 new businesses starts• 9,777 new jobs created
GEORGIA SBDC NETWORKWhat Services we Offer? -Capital Assistance
Business Planning, Financial Projections, Equity Analysis
-Marketing Assistance Marketing Plans, Research, Strategic Analysis
-Accounting and Financial Management• Record Keeping and Accounting Systems• Ratio Comparison and Financial Analysis• QuickBooks Assistance
-HR & Business Management -International Trade
• But first…..another fun opportunity….
The Business Plan
The Business Plan
What is a Business Plan?A business plan is any plan that works
for abusiness to help them…..
• Look ahead• Allocate resources• Focus on key points• Prepare for problems and
opportunities
Why do you need a business plan?
• It forces you to focus.• It tests your commitment.• It brings you down to reality.• It gives you a benchmark. • Required by lenders and investors.
The Business PlanElements of a Good Plan
Cover Page Executive Summary (Do
Last)
Mission Keys to Success Business Description Products and Services Market Analysis (SWOT)
Marketing Strategy
Competition Management & Personnel Operations (retail, internet, locations)
Financial Plan Supporting Documentation
The Business PlanFour Ways to Ruin a Plan
Too much “BLUE SKY”◦ Failure to consider outside influences –
competition, industry trends, economic environment.
◦ Lack of market research and industry analysis
Unsubstantiated financial assumptions
Outdated informationUnprofessional appearance of plan –
illogical format, spelling and grammatical errors
Good Business Plan Resource
https://www.agplan.umn.edu
• But first…..another fun opportunity….
Financial Statements
Financial Statements
• Income Statement• Balance Sheet• Statement of Cash Flow
Financial Statements
Financial Statements
Financial Statements
INDICATES HOW THE REVENUE (ALSO KNOWN AS THE “TOP LINE”) IS TRANSFORMED INTO THE NET INCOME (THE RESULT AFTER ALL REVENUES AND EXPENSES HAVE BEEN ACCOUNTED FOR, ALSO KNOWN AS NET PROFIT OR THE “BOTTOM LINE”)
THE IMPORTANT THING TO REMEMBER ABOUT AN INCOME STATEMENT IS THAT IT REPRESENTS A PERIOD OF TIME. THIS CONTRASTS WITH THE BALANCE SHEET, WHICH REPRESENTS A SINGLE MOMENT IN TIME.
Financial Statements
THE BALANCE SHEET IS A SNAPSHOT OF A FIRM’S FINANCIAL RESOURCES AND OBLIGATIONS AT A SINGLE POINT IN TIME.
GOVERNED BY THE ACCOUNTING EQUATION: ASSETS = LIABILITIES + OWNERS’ EQUITY.
Financial Statements “CASH IS KING”
THE CASH FLOW STATEMENT IS A CASH BASIS REPORT ON THREE TYPES OF FINANCIAL ACTIVITIES: OPERATING ACTIVITIES, INVESTING ACTIVITIES, AND FINANCING ACTIVITIES. IT CAPTURES BOTH THE CURRENT OPERATING RESULTS AND THE ACCOMPANYING CHANGES IN THE BALANCE SHEET.
AS AN ANALYTICAL TOOL, THE STATEMENT OF CASH FLOWS IS USEFUL IN DETERMINING THE SHORT-TERM VIABILITY OF A COMPANY, PARTICULARLY ITS ABILITY TO PAY BILLS. (BANKRUPTCY)
• Key Take Aways:– Balance Sheet is for a POINT IN TIME
– Income Statement and Statement of Cash Flows• Are for a PERIOD OF TIME
– PROFIT does NOT equal cash
– “CASH IS KING”
Financial Statements
