1. Building Your Pro Forma Financial Statements
Chapter 8
Building Your Pro Forma Financial Statements
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

2. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Common mistakes entrepreneurs make
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

3. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©

4. BUILDING YOUR PRO FORMA FINANCIAL STATEMENTS
Build-up Method
Comparable Method
Building Integrated Financial Statements
Final Steps
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

5. BUILD-UP METHOD Revenue Projections COGS Revenue Worksheet Operating
COGS Worksheet
Operating
Expenses
Operating Expense Worksheet
Preliminary
Income Statement
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

6. COMPARABLE METHOD Choose industry metrics Benchmark other companies
in the industry
Compare your projections to other
companies and industry average
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

7. BUILDING INTEGRATED FINANCIAL STATEMENTS
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

8. PUTTING IT ALL TOGETHER
2-3 page explanation of your
Financial Spreadsheets
Discuss the Cash
Flow Statement
Discuss the
Income Statement
Discuss the
Balance Sheet
Focus on major infusions of cash
describe the nature of your
accounts receivables and payables
Mention PP&E expenses
Focus on major infusions of cash
Describe the nature of your
Accounts receivables and payables
Mention PP&E expenses
Talk about revenue drivers
Talk about seasonality
Discuss the expense categories
Talk about major asset
categories, and any
Liabilities that aren’t
clear from the previous
discussion
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©