“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”Abraham Lincoln
To gain debt financing a business must have accurate and realistic financial projections. Lenders are looking for 3-year projections, with the first year being month-by-month and the following financial statements:
- Sources and Uses Statement
- Income Statement (Profit and Loss)
- Cashflow Statement
- Balance Sheet
At Innovative Dubuque LLC we help clients understand what numbers are needed to build these statements and how to research to find them. We also act as a second set of eyes to see what has been missed. For items like sales estimates we help the client think through what is realistic and how these numbers can be given support by research or similar company comparisons. As we go through the process we help clients understand the assumptions behind the numbers so that these can be communicated in their business plan.
With financial projections based in reality, they can at times show that a business model will not work. When this happens we help the client to understand why this is happening and what options they have to change the model to make it profitable. Upon completion, we help the client fully understand the results so they can address questions that may be raised by a potential lender.
Creation of accurate and detailed financial projections takes a great deal of financial knowledge and part of what we do is educational to help the business owner. Once the financial projections and business plan are created, we can also help the business owner to understand what funding options are available.