Recommended Approach

There are several ways one can complete a financial proforma model.  We would like to suggest one way.

Intercept allows you to complete up to a five-year financial model.  Though most would argue that the "crystal ball" gets to be rather cloudy after even three years, it may take a start-up company 18-24 months to develop their product line for launch.  This then allows 36 months or so for you to generate sales and demonstrate the viability of your company.

We would recommend that you build your model accounting for all of the revenues and expenses needed to run your company.  Your Cash Flow statement will become an important reference for you.  The goal of your company will be to keep the Cash Flow statement, in particular the last line (or Cash Ending) from going red

To offset this from occurring, you will need to either add debt and/or equity to your company to keep it financially viable. 

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