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The Ultimate Startup Pro Forma model can assist in reaching the break-even point by providing a detailed financial projection. It allows startups to forecast their revenue, expenses, and cash flow, helping them understand when they will be able to cover all their costs and start making a profit. This model can be particularly useful for startups as it can help them plan their finances effectively and make informed decisions to reach their break-even point faster.
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In his article for Harvard Business Review, Baruch Lev – the Philip Bardes Professor of Accounting and Finance at the Stern School of Business in NYU, talks about proforma as one of the ways in which managers can impart useful information to investors. (For more like this, check out our book summary). Lev stresses that "research shows that proforma earnings statements prominently displayed in the headline or first paragraph of a company's news release have a much stronger impact on stock prices than proforma earnings reported elsewhere in the document."
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How to effectively show the investment and reward opportunities of a new venture or project? Use our "Ultimate Startup Pro Forma" model to showcase a...