When cash flow becomes positive in a business, it means that the business is generating more revenue than the cost it incurs. It's a good sign as it indicates that the business is now able to sustain its operations and has reached its break-even point. It's also an indicator that the business can now start making a profit.

Asked on the following spreadsheet:

resource preview

Ultimate Startup Pro Forma

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...

download
Download this spreadsheet

Download free version

Microsoft Excel Google Sheets
Not for commercial use

Or, start for free ⬇️

Download and customize this and hundreds of business spreadsheet templates for free

Voila! You can now download this spreadsheet

Download

spreadsheet Preview

View all chevron_right

Question was asked on:

Do you need to present the investment and reward opportunities of a new venture or project? Our collection is intended to help corporate individuals and entrepreneurs ready to propose a venture, display how much it will cost, how much revenue it will generate and at what point will cash flow become positive and the venture will reach its break-even point.

Questions and answers

info icon

A startup pro forma can be used to compare different venture opportunities by providing a detailed financial projection of each venture. It includes the cost, expected revenue, and the point at which the venture will break even. By comparing these factors, one can assess the profitability and feasibility of different ventures.

There are several ways to present a startup pro forma to non-financial stakeholders. One way is to use visual aids such as graphs and charts to illustrate the financial data. This can make it easier for non-financial stakeholders to understand the information. Another way is to provide a narrative explanation of the financial data. This can help non-financial stakeholders understand the context and implications of the financial data. It's also important to highlight key points and takeaways, and to be prepared to answer questions and provide additional information as needed.

View all questions
stars icon Ask another question