1. Rookies and Newcomers: The Road to Success Daily Reconciliation Source Documents Type of Entity Funding Sources Balance Sheet Profit & Lost Cash Flow Statement Financials Cradle to Grave

2. Financing and Credit Type of Entity LLC –Simple to Incorporate (Most Common) Sub – S –Owner takes a small salary which can be sent directly to “Uncle Sam” for taxes Partnership Sole Proprietor

3. Financing and Credit Funding Sources SBA Senior Bank Officers of Local Banks Some smaller banks are more aggressive Industry Financers Vendors- stretch out payments Landlords- leasehold improvements *Tip-Wise: Strongest negotiating time is before you sign or buy!

4. Financing and Credit Start Up/Construction Costs Total Cost = $796, 074

5. Financing and Credit Source Documents *Tip-Wise: Owners should spot check the total sales from the source documents with the amount recorded on the Daily Reconciliation below. Register Reports Party Software Reports Credit Card Reports Cash Transfer Box Log Petty Cash Log

6. Financing and Credit Daily Reconciliation POS (Point of Sale) software that categories your Gross Sales by cash, credit, and gift card. This reconciliation should provide you with your expected cash deposit. *Tip-Wise: Owners should check the cash deposits against the Daily Reconciliation.

7. Financing and Credit Profit & Loss What you own versus what you owe and the difference or “Net Equity.” Statement of Cash Flow Balance Sheet Revenue, Expenses, and the “Bottom Line” Changes on your balance sheet are the basis for the net increases or decrease in your cash flow, not the P&L’s bottom line.

8. Financing and Credit Profit & Loss

9. Financing and Credit Cash Flow

10. Financing and Credit Balance Sheet

11. Financing and Credit Attractions Financial Analysis

12. Financing and Credit Size Does Matter 10,000 Sq Ft or less, best if owner operated Employee Larger chain competitors International buyers Check with vendors, insurance, & financing companies Industry insiders – Good source Exit Strategies

13. Daily Reconciliation Source Documents Type of Entity Source of Funding Balance Sheet Profit & Lost Cash Flow Statement