The entrepreneurial financial model

Abstract

When a potential investor or other likely stakeholder picks up a business plan and reads it, the final point of their examination, the ‘bottom line’, is almost always going to be the financial statements, where the future performance of the business is projected. A useful business plan must include an integrated suite of projected financial statements — known as ‘pro forma’ statements — which are generated by an entrepreneurial financial model. The central feature of a good model is its ability to live.