Social Entrepreneurship Interterm Course

Session 3Social Entrepreneurship Interterm CourseCourtesy of www.wibo.orgCourtesy of www.wibo.orgCourtesy of www.wibo.orgMajor ThemesProfitableSustainableScalableMeasurableSteps to a Successful BusinessThe ExistentialWhat is my product/service?How will I capitalize on my strengths?How will I overcome my weaknesses?What are my goals?Market ResearchWhat does my product/service address?What is my market?Who are my competitors?What is my differential advantage?The MessageWhat is my target market?Who influences the buying decision?What is the message of my marketing campaign?The Marketing CampaignWhat marketing vehicle will I use to communicate with my target market?How will I generate word-of-mouth?What is the cost of my marketing campaign?The CustomersHow do I identify qualified prospects?How will I ensure a steady flow of new buyers?Helping People Buy: SalesWhat is the point of purchase?How do I prove my product/services value?How do I turn customers into advocates?Making a ProfitHow many units-per-month can I produce and sell?What are my costs?How will I price my product?Who are my direct competitors?Using Other Peoples Money: FinancingFriends and familyAngelsLoansVenture capital

Unit #12 Financing Your Business Growth: CASH FLOW & CREDIT. 216

14th Edition Start Small, Start Now! www.wibo.org

FIGURE 12A SAMPLE CASH FLOW STATEMENT

Cash in Bank, 5/24/09 $8,432 Projected Income

James $2,300

Rodriguez $1,200

Thomas $800 Vega $3,100

Wolinski $900

Total Projected Income $8,300

Total Cash Available, EOM* $16,732

Projected Expenses

Payroll $2,500

Bonuses $1,250 Rent/Utilities $2,000

Accounts Payable $7,500

Total Projected Expenses ($13,250)

Projected Balance, EOM* $3,482 *(end of month)

Appendix J Financial Statements 320

Soft Touch Skin Consultants Income Statement

March 2009

Sales Revenue $ 52,000

Cost of Goods Sold Expense 33,800

Gross Margin $ 18,200

Operating Expense 12,480

Depreciation Expense 785

Amortization Expense 325

Operating Earnings $ 4,610

Interest Expense 545

Earnings before Income Tax $ 4,065

Income Tax Expense 1423

Net Income $ 2,642

Appendix J Financial Statements 319

APPENDIX J Financial Statements

Soft Touch Skin Consultants Balance Sheet

Assets March 31 2009 Cash $ 3,265 Accounts Receivable 5,000 Inventory 8,450 Prepaid Expenses 960 Total Current Assets $ 4,225

Property, Land & Equipment 16,500 Accumulated Depreciation (4,250) Goodwill 7,850 Accumulated Amortization (2,275) Total Assets $ 35,500

Liabilities & Owner's Equity Accounts Payable - Inventory $ 2,600 Accounts Payable - Operating Expenses 720 Accrued Operating Expenses 1,440 Accrued Interest Expense 75 Income Tax Payable 165 Short-Term Notes Payable 3,125 Total Current Liabilities $ 8,125

Long-Term Notes Payable 4,250 Total Liabilities $ 12,375

Capital Stock 8,125 Retained Earnings 15,000 Total Owner's Equity $ 23,125 Total Liabilities & Owner's Equity $ 35,500