Why to create the financial prognosis?
Creation of the financial prognosis forces you to consider all key aspects of company’s activity and answering the questions: What costs will I incur? What revenues will I gain? Are they big enough to cover the expenses? When will my startup achieve viability? Is my business attractive for an investor? In simplified terms: Is my business financially „tight”
Financial analysis vs. Budgetdeck
Analysis and financial prognosis is a powerful excel, which usually is created in a further stage of the investment process and during several talks with mentors and investors. Budgetdeck is a supplement for Your Deck that you send to an investor. It is a detailed analysis of Your startup. It is placed on one sheet of paper which allows: the investor to familiarize with financial assumptions of Your project.
Can I send the financial prognosis instead the Budgetdeck?
Certainly. This is as if you send at the beginning the business plan on 50 pages and tell the investor to carefully read it.