• Making a cash flow analysis is very important. Use a computer model (mail to: capital@ventureplan.com to request a customized model for your business) in one of these areas: Research and Development, Manufacturing, Wholesale, Distribution, Retail, Services, Software, Real Estate, Consulting. Each area is an entirely different model. Note: Trying to go from R&D to Retail with one business is another formula for disaster.

• Make three models of assumptions for Good, Likely, and Worst Case Scenarios and solve for financial requirements.

• Develop a decision matrix that compares profit, cash requirements, financial ratios, and break-even calculations to find the highest ROI with lowest capitalization.

• How much money is needed to reach startup, the first year of operation, how much and when do you need it?

• Do you have it? Where will it come from?

• Will it be Debt or Equity? And, how much equity is required to obtain the financing?

• Compare the answers to all three of these models and evaluate the results.

Entrepreneur

Venture Financing Process