David Harkins' Blog

Entrepreneurship

Answering Big What-Ifs: The Interactive Pro Forma

One of the best ways to understand the financial implications of changes a business is to build an interactive pro forma. The interactive pro forma will allow an entrepreneur to quickly change assumptions and easily see the possible financial impact on the business as those assumption flow through the other financial statements. Once set up, it allows an entrepreneur to play a “What-if” game with assumption inputs and watch how those changes affect the business performance.

READ: Stop focusing on your product and start focusing on your customer
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Entrepreneurship

Financial Risk and the Entrepreneur

Each type of entrepreneurial venture encounters some level of risk. Risk management is an entrepreneur’s responsibility and understanding entrepreneurial finance is the key to minimizing risk. Considering knowledge of entrepreneurial finance is so often the difference between success and failure, all entrepreneurs should devote themselves to understanding the key financial indicators for their business.

READ: Stop focusing on your product and start focusing on your customer
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Finance

Interview: Kim Stewart on Entrepreneurial Financing

In my interview with BB&T’s Kim Stewart, she offers, among other things, that entrepreneurs seeking financing must be prepared with a business plan, knowledge of the industry, and distinctive competencies you might bring, and identify the risks and the steps that you are taking not only to mitigate those risks but also to mitigate the loss in the event the risks are realized. 

READ: Stop focusing on your product and start focusing on your customer
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