New Company

New companies are generally easier to model than existing companies. However, you will be creating in entirety the baseline and expectations for your company's performance. For most, you will be doing this in order to raise some amount of capital in the form of debt and/or equity. 

The entrepreneur doing this will be tasked with the accuracy and believability of their financial model to potential stakeholders. Most investors are interested in the "long-run," with the potential success of your efforts and what financial payback they will receive. 

Consequently, your inputs for material, equipment, staff, and a reasonable expectation of sales to catapult your company to a money making enterprise are critical. You will be facing several challenges as you work through this process. The old adage of "garbage-in, garbage-out" aptly applies to computers and financial models. 

If you are seeking capital for your venture through grants, friends and family, angels, family office, venture capital, institutional funds and/or banks, your preparation should be the same for all. Your proforma model needs to be comprehensive, and you need to know every facet of what you will be presenting.

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