Name Calling!

Picking a name for a new venture, product. or service is not easy. It may well be one of the hardest things we'll ever do in our venture.

Picking the wrong name could prove disastrous; the right name (brand) could add many sales dollars.

The following checklist should help. However, it is unlikely that any name will meet all these criteria, and there have been many successful names that met but a few.

Good luck!

1. Can we get the .com URL for the name we want? 
2. Is the name distinctive?
3. Is the name instantly recognized?
4. Is the name easy to remember?
5. Is the name pleasant to see?
6. Is the name pleasant to say?
7. Is the name easy to spell?
8. Is the name itself confusing?
9. Is the name easily confused with other names?
10. Is there a connection between the name and the product, service, or business venture it represents?
11. Does the name suggest what the business venture, product, or service does? If not, the tagline that accompanies the name may have to carry more communications weight.
12. Is the name descriptive of the benefits offered by the product, service, or business venture?
13. Does the name convey the proper image?
14. Does the name fit customers expectations?
15. Does the name reinforce customer expectations?
16. Are there any negative connotations with the name
17. Is the name limiting?
18. Does the name coordinate with other names used in the organization?
19. Does the name work in all target markets?
20. Can the name be legally protected? Check with USPTO.gov and your state corporation commission to see if the name you want is already taken. If it is, start over!
21. Can the name be used in other countries?

[4.01]

How to Build an Effective Team

1. Team members should clearly understand what is expected of them, individually and as a group.
2. Team members should understand their specific role on the team.
3. Team members should be committed to the success of the team ... all for one, one for all!
4. Team members should be competent in their individual field of expertise.
5. The team should be balanced and cover all key areas ... for example, a new business venture team often consists of a general manager, a product/operations manager, a marketing/sales manager, and a finance manager.
6. Teams members should be of good character and maintain high ethical standards.
7. The team should have control of their destiny.
8. Team members should actively communicate on an on-going basis.
9. Team members should actively coordinate their planning and actions on an on-going basis.
10. Team members should actively collaborate on an on-going basis.
11. The team should be engaged in proactive change and innovation.
12. The team should be responsible for the consequences of its actions.

Sources of Innovation Opportunity

1. The unexpected success, failure, or outside event
2. The incongruity between reality as it actually is and how reality is perceived
3. Innovation based on process need
4. Changes in industry structure or market structure that catches everyone unaware
5. Demographic (population) changes
6. Changes in perception, mood, and meaning
7. New knowledge, both scientific and nonscientific

[Thank you, Peter F. Drucker]

Teamwork Skills

1. Listening ... it is important to listen to other people's ideas. When people are allowed to freely express their ideas, these initial ideas will produce other ideas.
2. Discussing ... it is important to discuss your ideas with your teammates until you agree.
3. Questioning ... it is important to ask questions, interact, and discuss the objectives of the team.
4. Persuading ... individuals are encouraged to exchange, defend, and then to ultimately rethink their ideas.
5. Respecting ... it is important to treat others with respect and to support their ideas.
6. Helping ... it is crucial to help one's coworkers, which is the general theme of teamwork.
7. Sharing ... it is important to share with the team to create an environment of teamwork.
8. Participating ... all members of the team are encouraged to participate in the team. (usually consist of three or more people)
9. Communicating ... For a team to work effectively it is essential team members acquire communication skills and use effective communication channels between one another e.g. using email, viral communication, group meetings and so on. This will enable team members of the group to work together and achieve the team's purpose and goals.

[Thank you, Wikipedia]

Traits of Successful Innovators and Entrepreneurs

Able to accept rejection ... able to build new structures ... able to build on the strengths of others ... able to communicate non-verbally ... able to concentrate ... able to control and direct ... able to cope well with novelty ... able to creates internal visualizations ... able to elaborate ... able to escape
perceptual set and entrenchment ... able to express themselves ... able to fantasize ... able to find order in chaos ... able to focus ... able to get along well with others ... able to go beyond logical expectations ... able to handle abstractness ... able to identify problems ... able to imagine ... able to juxtaposition two or more incongruities ... able to keep an open mind ... able to keep options open ... able to make independent judgments ... able to observe trends ... able to organize ... able to perform "miracles" ... able to resist jumping to premature conclusions ... able to see inside-out ... able to solve collision conflicts for which there are no readily apparent solutions ... able to synthesize or combine ... able to think logically ... able to think metaphorically ... able to translate ideas into action ... able to use existing knowledge as base for new ideas ... able to use wide categories and images ... able to visualize ... able to visualize the future ... action-oriented ... adaptable ... adept with numbers ... alert to gaps in their knowledge ... alert to novelty ... ambitious ... analytical ... articulate ... attracted to challenges, not risks ... aware and empathetic of the needs of others ... aware of the world around them ... basically knowledgeable of their target area ... bold ... breaking the boundaries ... charismatic ... colorful ... confident ... considerate ... creative ... creative in a particular domain ... curious ... driven ... earthy ... emotionally appealing ... emotionally expressive ... emotionally stable ... empathetic ... enthusiastic ... ethical ... exciting ... expecting success ... expressive ... flexible ... fluent in areas of expertise ... full of energy ... futuristic ... get along well with others ... good at maintaining interpersonal relations ... good at timing ... good communicators ... good judgment ... good leaders ... good sense of timing ... have good communicative ability ... healthy ... humorous ... imaginative ... in good health ... in need of feedback ... in need of high achievement ... in possession of a positive attitude ... independent ... independent in outlook ... independent in thinking ... innovative ... inquisitive ... intelligent ... intense ... inventive ... know how to organize ... knowledgeable ... listeners ... lively ... loaded with energy ... logical ... looking for opportunities in problems ... looking for problems to solve ... magical ... maintain good interpersonal relations ... not status seekers ... not willing to give up ... objective in their approach to interpersonal relationships ... open-minded ... original ... possessing a sense of urgency ... possessing a vivid imagination ... possessing stamina ... possessing superior conceptual ability ... possessing supra-rational creative abilities ... possessing wide and varied interests ... productive ... proud of what they do ... rational ... realistic ... resistant to closure ... resourceful ... self-confident ... self-starting ... self-sufficient ... sensible ... sensitive to problems ... skilled decision makers ... skilled in good judgment ... sociable ... stimulated by variety ... tactful ... take pride in what they do ... unwilling to conform ... welcome responsibility ... willing and able to make decisions ... willing to accept responsibility ... willing to ask "why?" ... willing to invest in the future ... willing to question norms and assumptions ... willing to solve puzzles ... willing to take a chance ... willing to take calculated risks ... willing to work hard ... word fluent ...

Brainstorming!

A good way to have a good idea is to have lots of ideas from which to choose! Brainstorming is a Creativity Supertool!

1. Brainstorming is a team sport ... support your team members!
2. No criticism ... no "devil's advocates" allowed!
3. Anything goes … wild, crazy, impractical, ingenious ideas encouraged!
4. Go for quantity, not quality, of ideas!
5. All ideas encouraged!
6. Piggyback, improve, combine ideas ... be an "angel advocate"!
7. Record all ideas so nothing gets lost!
8. Filter ideas later, not during the brainstorming session!
9. Set a time limit for the session, then stick to it!

Variation ... brainwriting: the general process is that, in a group, ideas are recorded by each individual who thought of them ... they are then passed on to the next person who uses them as a trigger for their own ideas.

Creativity Kindling Exercises

• Level 1 ... Explain, Demonstrate, Identify, Illustrate, Translate, Show, Label
• Level 2 ... Solve, Organize, Construct, Generalize, Examples, Relate, Summarize
• Level 3 ... Compare, Contrast, Classify, Dissect, Analyze, Categorize, Take Apart, Sequence, Group
• Level 4 ... Design, Hypothesize, Predict, Combine, Originate, Compose, Improve, Invent
• Level 5 ... Create, Modify, Forecast, Restructure, Initiate, Imagine, Substitute, Change
• Level 6 ... Justify, Criticize, Judge, Recommend, Evaluate, Propose, Defend, Appraise

Types of Creativity

• Expressive ... Very common form of creativity.  Example: Doodling, short notes, humming a new melody.   Useful for communications, advertising, sales.
• Productive ... Common form of creativity.  Example: Finding a better way of doing a job.  Useful for process improvement, cost reductions, efficiency, improvement.
• Inventive ... Userful for new product development.
• Innovative ... Applied creativity.  Better solutions than competition.  Competitive advantages.   Useful for marketing, new product development.
• Emergenative ... Very rare form of creativity.  Example: Einstein's Theory of Relativity...opened the door for space travel, nuclear fusion.  Useful for developing entirely new industries.

Customer Perception of Value

From the choices usually available in a marketplace, customers determine which supplier offers the best value. Different customers have different needs, different wants, different desires. Hence, multiple competitors may well exist in the same marketspace. However, seldom do competitors have the same market share. Typically, one company wins the vote for "best value" from a plurality (or majority) of potential customers

In a nutshell, customers determine value by which supplier offers the best benefits at the optimal price.

Value = Benefits/Price

Great value, super bargain!: the benefits greatly exceed the price ... Value = ++
Good value: the benefits outweigh the price ... Value = +
Fair value: the benefits match the price ... Value = OK
Bad value: the price outweighs the benefits ... Value = -
Rip off!: the price greatly exceeds the benefits ... Value = --
To increase value, either add benefits or decrease price.
The "quick and dirty" way to enhance value is to have a "Sale!" ... "50% off, limited time only!"

Customers make their buy decisions primarily based on their perceptions of value, comparing the options offered from several sources. How many sources are included is a customer decision, and not always entirely logical. One of the key values of a brand is to make the buying decision easy for the customer ... "I'll just by an Apple computer rather than explore other options."

Some benefits are determined objectively ... fit, form, function, feel, features, performance ...
Some benefits are determined subjectively ... color, smell, brand name, shape ...
Some aspects of the price are direct ... the cost ...
Some aspects of the price are indirect ... warranty, convenience of purchase ...

Ways to deliver value to a customer:
- Product: performance, quality, features, brand, selection ...
- Price: fair, visible, consistent, reasonable
- Access: convenient, location, nearby, at-hand
- Service: ordering, delivery, return, check-out
- Experience: emotional, respect, ambiance, fun, intimacy ...
- Process: ways of doing business that are consistent and comfortable

Characteristics of a Great Venture Plan

1. Presents a clear explanation of why the venture concept is a significant opportunity.
2. Provides a concise description of the venture's products or services.
3. Provides a clear, rational explanation of why the venture idea is better than anything else already available.
4. Succinctly explains customer benefits in qualitative and quantitative terms.
5. Provides a clear explanation of the one or two things the company does best.
6. Focuses on market-driven opportunities.
7. Provides evidence of customer acceptance of the venture's products and services.
8. Presents evidence of the marketability of the products and services.
9. Presents a quality, sophisticated, experienced management team, advisors, and board of directors with complementary and encompassing business skills.
10. Gives a clear sense of what the founders expect to accomplish in 3 to 7 years.
11. Provides a rational explanation of why the investor should trust the management team to do what they say they are going to do.
12. Identifies all the alternatives available to prospective customers.
13. Addresses how the venture will develop and sustain a distinct competitive advantage.
14. Addresses how the venture will develop and sustain a proprietary position.
15. Contains reasonable financial projections with key data explained and justified.
16. hows how and when the venture will generate sustainable positive cash flow streams.
17. Describes the manufacturing and/or service delivery processes and associated costs in appropriate detail.
18. Explains and justifies the level of product development required.
19. Justifies financially the means chosen to sell the products and services.
20. Supports credible growth projections.
21. Provides a clear explanation of how the money invested in the venture will be used.
22. Shows how and when the venture will generate sustainable profit.
23. Shows an appreciation of investor needs.
24. Shows how investors can cash out in three to seven years, with an appropriate return on their investment.
25. Provides a clear explanation of what the investor will get for their investment.
26. Identifies significant risks and proposes rational contingencies.
27. Has the right appearance...not too fancy, not too plain.
28. Is arranged properly with the executive summary, table of contents, and chapters in right order.
29. Is the "right length"...not too long, not too short...to convey all the pertinent information.
30. Is plausible throughout.
31. Has facts rather than opinions
32. Is quantitative rather than qualitative
33. Stresses specifics rather than generalities
34. Reads like a combination of the Wall Street Journal, a model of good business writing, and USA Today, a model of good story-telling

[3.20]

Tips for Better Presentations

When considering what type of visual representation to use for your data or ideas, there are some rules of thumb to consider:

1. Use visuals (slides) sparingly. One of the biggest problems in some presentations is the overuse of visuals. A useful rule of thumb is one visual for every one to two minutes of presentation time. Fifteen minute presentation means fifteen slides!
2. Use visuals pictorially. Graphs, pictures of equipment, flow charts, etc., all give the viewer an insight that would require many words or columns of numbers.
3. Present one key point per visual. Keep the focus of the visual simple and clear. Presenting more than one main idea per visual can detract from the impact.
4. Make text and numbers legible. Minimum font size for most room set-ups is 18 pt. Can you read everything? if not, make it larger. Highlight the areas of charts where you want the audience to focus.
5. Use color carefully. Use no more than 3-4 colors per visual to avoid a rainbow effect. Colors used should contrast with each other to provide optimum visibility. For example, a dark blue background with light yellow letters or numbers. Avoid patterns in colour presentations; they are difficult to distinguish.
6. Make visuals big enough to see. Walk to the last row where people will be sitting and make sure that everything on the visual can be seen clearly.
7. Graph data. Whenever possible avoid tabular data in favor of graphs. Graphs allow the viewer to picture the information and data in a way that numbers alone can’t do.
8. Make pictures and diagrams easy to see. Too often pictures and diagrams are difficult to see from a distance. The best way to check is to view it from the back of the room where the audience will be. Be careful that labels inside the diagrams are legible from the back row also.
9. Make visuals attractive. If using color, use high contrast such as yellow on black or yellow on dark blue. Avoid clutter and work for simplicity and clarity.
10. Avoid miscellaneous visuals. If something can be stated simply and verbally, there is no need for a visual.

[Thank you, Ian McKenzie]

Income Statement

Their First Home

Sure, they're big and famous now, but take a look at their first "starter" homes!

Every Healthy Venture Looks Like This

Common Venture Plan Mistakes

1] Vagueness ... We see this a lot when people are afraid that someone will steal their idea. Lenders and investors are not interested in going into business themselves. They’re looking for places to put their money where they can get a desired return. If your business plan is too vague, they won’t understand what you’re doing, and they’ll put their money elsewhere.

2] Broad, Unsubstantiated Statements ... "Everyone loves ________________ …" Everyone? Fill the space with anything – chocolate, puppies, May flowers – and there is someone out there that just hates it, guaranteed. How about "There is a dire need for …" Dire? Are people dying in the streets because they don’t have your product or service? Not likely. Or "It is a known fact…" Known? By who? Don’t make broad, general statements you can’t substantiate.

3] Overly Optimistic Financial Projections ... You’ve got to have a positive attitude. But don’t be so positive that the reader will wonder if you realize that no one can predict the future with complete accuracy. Run scenarios that take various possibilities into account. You want to show lenders that you can pay back their loans or investors that you can pay dividends even if problems do crop up.

4] No Discussion of Risk ... Overly optimistic projections are usually accompanied by an absence of any discussion of risk. It is really important that you think about what can go wrong with your business and what you’re going to do if that happens. You can be absolutely sure that your reader will figure out what your risks are. You’d better assure them that you’ve thought about risk and have plans for dealing with it.

5] Inconsistency ... Does your marketing plan include tv advertising but your projections show only $200/month in advertising expenditures? That’s a real disconnect that any savvy reader will pick up right away. Chapters in a business plan are not separate, stand alone pieces. They all have to weave together to show that you know what you are doing.

6] Unrealistic Financial Assumptions ... Imagine 5-year projections with energy bills remaining constant over the entire five years. Or gross profit margins of 35% in the first year and 60% in the third. These things just don’t happen very often in real life. Make sure your numbers reflect the real world.

7] Sloppiness ... Spell-checker is a great tool but if your typo is another perfectly good English word it won’t get flagged. Not only should you proofread your business plan, but have one or more people who haven’t seen it before read it, too. We all have a tendency to see what we intended to write rather than what we actually typed. Fresh eyes are invaluable. And make sure you’ve double and triple-checked your numbers. Numbers that don’t add up correctly make a very bad impression.

8] Doesn’t Know the Market ... You really need to show that you know and understand your market(s). That means you’ve got to do some serious research. Here is where an outside consultant may be helpful. But with all the information available on the internet, you can do a good job by yourself if you put in the time and effort. See the Internet Resources page for some good websites.

9] Doesn’t Know the Competition ... No matter how unique your product or service, there’s always competition. Suppose, for example, that you were thinking of opening a bowling facility in a location where there isn’t another within a 25 mile radius – or even a 50 mile radius. You may think you have a monopoly. But that’s because you don’t recognize what your market really is. It isn’t the bowling market – it’s the recreation and entertainment market. Your competitors are movie theaters, amusement parks, miniature golf ranges, etc. If you don’t recognize this then how are you going to compete effectively?

10] Knocks the Competition ... People dismiss their competition too easily. First of all, if they’ve been in business for any length of time they must be doing something right. Ignore that at your own peril. If your widgets are better than theirs, then maybe their prices are lower or their service is superior or their advertising is more effective or their location is better. It’s not enough to know what’s wrong with your competition. If you’re going to succeed you’ve got to know what they do well and be prepared to compete with that.

11] Doesn’t Focus on the Reader ... Who are your readers and what do they want? Here’s a brief rundown:

• Bankers: They want to know how you’re going to repay the loan.
• Investors: They want to know if you’re going to be profitable enough to give them a high return either through dividends or by taking the business public.
• Strategic Allies: They’re going to have to spend a lot of time and money to do joint business with you. They want to know if it will be worth the investment.
• Major Clients (for Preferred Vendor Status): They’re going to invest time and money to bring you into the fold. The want to be sure you can deliver what they need, when they need it, at a price they can afford....AND that you're strong enough to be around for the long haul.

[Thanks, Victoria Posner]

Entrepreneurial Mindset

1. Take responsibility
2. Get results
3. Create value
4. Earn a profit
5. Solve customer problems
6. Create competitive advantage
7. Customer and quality driven
8. Generate wealth
9. Share the wealth with those that create it

Buying a Hot Dog Decision Process Flow

Even a relatively simple purchase may have a fair amount of complexity. Take buying a hot dog as an example ...

Traditional Venture Plan Outline

COVER PAGE

1. Venture Title
2. Tag Line
3. Logo
4. Principles and Positions
5. Contact Information
6. Copyright and Disclaimers

EXECUTIVE SUMMARY

1. Description of the Problem or Opportunity
2. The Business Venture Concept and Solution
3. Key Business Model and Venture Strategies
4. Target Market and Projections
5. Competitive Advantages
6. The Team
7. The Offering
   

THE INDUSTRY AND THE COMPANY

1. The Industry
2. The Problem or Opportunity
3. The Product and Service Solutions
4. The Company and the Concept
5. Entry and Growth Strategy
   

MARKET RESEARCH AND ANALYSIS

1. Target Market
2. Customers
3. Market Trends
4. Direct and Indirect Competition
5. Estimated Market Shares Sales
6. Competitive Advantage
7. On-going Market Evaluation
   

ECONOMICS OF THE BUSINESS

1. Business Model
2. Gross and Operating Margins
3. Profit Potential and Durability
4. Fixed, Variable, and Semi-variable Costs
5. Months to Breakeven
6. Months to Reach Positive Cash Flow

MARKETING AND SALES PLAN

1. Marketing Strategy
2. Pricing
3. Sales Strategies
4. Sales Forecast and Methodology
5. Distribution
6. Advertising and Promotion Strategies

DESIGN AND DEVELOPMENT PLAN

1. Development Status and Tasks
2. Difficulties and Risks
3. Product Improvement and New Products
4. Costs
5. Proprietary Issues
6. Intellectual Property Issues

MANUFACTURING AND OPERATIONS PLAN

1. Operating Cycle
2. Geographical Location
3. Facilities and Improvements
4. Operational Strategy
5. Operational Plans
6. Regulatory and Legal Issues

MANAGEMENT TEAM

1. Organization and Legal Structure
2. Key Management Personnel
3. Management Compensation and Ownership
4. Employment and Other Agreements
5. Stock Options and Bonus Plans
6. Board of Directors
7. Investors and Shareholders
8. Supporting Professional Advisors and Services

SCHEDULE AND DEVELOPMENT PLAN

1. Timeline
2. Development Goals and Strategies

CRITICAL RISKS, PROBLEMS, AND ASSUMPTIONS


THE FINANCIAL PLAN

1. Actual Income Statements and Balance Sheets
2. Pro Forma Income Statements
3. Pro Forma Balance Sheets
4. Pro Forma Cash Flow Analysis
5. Break·Even Chart and Calculation
6. Cost Control Strategies
   

PROPOSED COMPANY OFFERING

1. Required Financing
2. Valuation
3. Offering
4. Capitalization
5. Use of Funds
6. Return on Investment
   

SUMMARY

1. Summary of Business Venture
2. Mission Statement
3. Vision Statement

APPENDIXES

1. Resumes
2. Product Data Sheets
3. Marketing Material
4. Detailed Research
5. Issues of Sustainability of the Venture
6. Impact on the Environment
7. Impact on the Community
8. Service and Warranty Policies

Calibrating Financial Objectives

1]  Start with a "Use of Funds" list with three key figures: minimum funding to get your venture off the ground and test the waters, nominal to hit stability (self-funded, break-even?), and optimal (move fast to grab market share before others can do so).  In the example below, this company nominal number is $140K.  You DO need a chart that clearly explains your use of funds. Yes, you should include salaries to the key employees.  And you should know how long it will take to get to stable ... the money will come from a combination of sales revenue and your start-up funds.

2] When you know your optimal start-up funding number, subtract the amount that the founders will contribute. This does NOT have to be a big number, but should show some level of commitment from the founders, albeit modest.  In the case below, the founders are committing $40K, so the company needs to raise $100K from investors.

3] Early stage investors are typically looking to acquire 20 to 30% of the company.  In the example below, this company is proposing selling 25% of their venture for $100K from investors.  So if everything goes their way, this startup will have $140K cash committed. The $100K from the investors is 25% of the company,  the company needs to be worth $400K total. Therefore, the business plan (AND the team that goes with it) must be worth $260K.  Will your plan be worth $260K.  YES, it CAN be ... no joke.  Is it easy. No, it's not. Takes a lot of work, but you and your team CAN do it.

4] To attract investors to this venture, they want a significant return on their investment to compensate for the very high risk they are taking putting money into something that at this point does not exist.  It is a startup, NOT a done deal!  So they are typically looking for a return on their investment in about 5 years of 10x to 20x ... Yes, 10 to 20 TIMES their investment. That is roughy 50% to 80% ANNUALIZED!  A whole lot more than what the no-risk bank would give them, or the typical 10% annualized return from Wall Street.  Where does this return come from?  The value of your venture in 5 years will be greater than what it is today.  How much greater ... 10 to 20 times!  In the example below, the venture valuation goal in year 5 is 20 times startup ... $8 million.  That is a GOAL for the company, but the company has 5 YEARS to make it happen.  YES, it CAN be done.

5] Rough estimate, if this company needs to be worth $8M in 5 years, its revenue for that 5th year should be in the ballpark of $8 million.  Yes, valuation of the company AND revenue are both about the same.  ROUGH estimate, but a reasonable one to use to CALIBRATE your financials.  If this company is going to generate $8M of revenue in year 5, how many "cookies" will it have to sell?  A lot!  A whole lot!  But it also has 5 YEARS to make it happen.

6] Suggest you use this process to APPROXIMATE and "CALIBRATE" your financials.  Now ... this process has a lot of assumptions. A WHOLE lot of assumptions. The most fundamental assumptions is that this company has been managed well during this 5 year period. No funny business. Good cash flow, good balance sheet, no major down-side issues like getting sued for patent infringement, et al. GOOD management.  Legal, moral, ethical.  YES, that IS how you will manage your venture.

7] The numbers below favor the INVESTOR.  A 20x return is on the high end of expectations for a good, solid business plan and a good, solid team.  Less than 20x is more favorable to the startup team. Less than 10x is minimizing the risk of your startup and prospective investors will think you're getting cocky.  More that 20x and the startup team is telling potential investors that they think risks are REALLY high.  The range to target is 10x to 20x ... the risk-return multiplier.  "Calculate" (an estimate, really) this number LAST.  If it's between 10 and 20, nice!!

8] Everything here is subject to change, and likely to have "exceptions" for this or that. Every investor looks at things a little differently. And every venture IS different, even if they are similar.  So get used to investors and judges and mentors and advisors giving you different advice and perspectives.  There are multiple paths to success. Be careful not to stray too far from your chosen highway!  The biggest money issues I've seen are 1] the numbers don't "fit" together, and 2] the numbers are way outside the "rational ballpark".

Basic Financial Statements

There are a variety of tools used for pro forma financial objectives planning and post-facto reporting ...

• Assumptions: a thing that is accepted as likely to happen ... the probability of a particular customer placing an order in the next 6 weeks, for example
• Budget: an estimate of income and expenditure for a set period of time
• Income Statement: provides performance information about a time period. It begins with sales and works down to net income and earnings per share (EPS)
• Cash Flow Statement: the total amount of money being transferred into and out of a business; a positive cash flow is good.
• Balance Sheet: a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time.