Financial Plan

Your financial plan must demonstrate to you and your investors that your business model "works".  AlphaLaunch developes a financial model for your startup using linked Excel spreadsheets.  This allows you to ask "what if" questions and analyze multiple scenarious. After developing a set of assumptions for your startup we build a set of four-year financial projections (pro-forma statements) including income (profit and loss), cash flow, and balace sheet statements.

Assumptions

AlphaLaunch builds your financial plan from the ground up.  We help you answer the fundamental questions that form the assumptions to your plan:  How much will you charge for your product?  How much product will you sell?  How does your price affect your sales volume?  What will the sales growth rate be for your business? How much will it cost to produce your product?  What expenses will you incur in selling your product including research and development costs, sales and marketing costs, and administrative costs?  What capital expindututres are needed to produce your product?  In formulating these assumptions we will test to see whether your costs, in terms of percentage of sales, are reasonable and standard for your industry. 

Income (Profit and Loss) Statement

The income (profit and loss) statement demonstates the statrups ability to make a profit.  The statement will show the statups gross margin (or gross profit) which is sales (also called revenue) minus cost of good sold (COGS).  The statement will also show operating profit which is the gross profit minus expenses (slaes and marketing costs, research and development costs, and general administrative costs).

Cash Flow Statement

Your cash flow statement demonstates how much and when your startup needs investment to achieve profitability.  The statement will show the statups cash balance which is the profit (loss) from the income statement plus investments minus capital expenditures .  Your cash flow statement will show

Balance Sheet

The balance sheet demonstrtes the net worth of your business.  Based on the income and cash flow statements, the balance sheet will show the equity in your startup (assests minus liabilities).  


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