Guy Kawasaki is a giant of the Entrepreneurship world. The Art of the Start is one of my most recommended titles in my library. I used it as a textbook when I teach Entrepreneurship – here at Minnesota State University and when I teach overseas.
Today I commented on his blog. He posted on Financial Projections, a topic I deal with everyday with Small business owners.
Guy only told part of the story.
He has great instructions on how to create an operation forecast – the Profit and Loss statement. Unfortunately, this is only half the story.
Here’s my comment:
…operationa
l (Profit and Loss) forecasts are an important part of the picture. For inventory and account receivable based businesses it is vital to forecast the balance sheet as well. The relationsh ip between inventory and money people owe you determines a great deal about your cash flow. In the end, we need to forecast the checking account balance. I recommend Entreprene
urs visit the Small Business Developmen t Center – these non-profit centers are located at over 900 colleges and universiti es around the US, and can provide resources to help develop complete financial projection s. I am the Director in South Central Minnesota at Minnesota State University
, Mankato – and we help around 350 Small Business Owners and Entreprene urs get started and grow their companies. www.myminn esotabusine ss.com