Help me study for my Business class. I’m stuck and don’t understand.
Take Business model as : ” Gas Station in California”
Deliverables for this assignment are: 1. Business Model & 2. Financial Goals
The initial stage of your business plan entails taking your vision about your entrepreneurial venture and establishing a roadmap for creating it through fruition. An integral part of the business plan is to develop a business model. Simply put, a business model describes how a company plans to make money. It is not what you do, but how you will make money doing what you do. The actual financial results come from your company as a money-making machine (Meyer & Crane, 2014).
A solid business model is the link between the venture strategy and financial plans. Projecting the financial performance and requirements can be classified as financial goals of the venture. A VC will want to know not only the numbers, but how they were derived. This is VERY important. There are four (4) key deliverables in the financial planning phase for most ventures: (a) a five-year detailed projection revenue, (b) a five-year Pro Forma P&L, (c) a five-year Pro Forma Cash Flow Statement, and (d) a five-year Pro Forma Balance Sheet (Meyer & Crane, 2014). You will need the reports, as well as the analysis for how these numbers were derived and they mean for your company.