The financial burden strikes again! Whether it be lack of financing or lack of understanding it. Entrepreneurs thrive on ambition, creativity and hard work but it’s safe to say that many are unclear about some of the basic financial concepts. The Ignite Capital application requires business owners to submit two years of projections via Statement of Cash Flows and their Income Statement.
We teamed up Jean Barret from Alterna Savings, to break down the financial information template that Ignite Capital requires applicants to submit. Follow these tips to improve your financial literacy skills and create informative financial documents.
The first form we ask applicants to fill out is the Statement of Cash Flows for year 1 and year 2 (see images below). For this you must know your sales, revenue and expenses and break it down monthly. Be as realistic as you can and do your research to know the market cost and price to determine your estimated monthly expenses. Remember, you can always re-adjust your cash-flow at any time based on where you are in your business cycle (start-up phase or existing).
The next form applicants are required to fill out is the Projected Income Statement (see image below) which will highlight estimated profits and losses. This form shows how a companies revenues become net profit after expenses are accounted for.
There you have it. The breakdown of the Ignite Capital financial statement template. For any more question related to the application contact firstname.lastname@example.org and don't forget, the deadline to apply is Sunday September 10th by 11:59 P.M..