ABSTRACT
This chapter examines how the entrepreneur can gain control of “the numbers” for utilization in decision-making. It presents a model and techniques that can assist an entrepreneur in planning the finances of a new venture. Developing a system for tracking and monitoring Quick Ratio Profit assumptions is the first step in effective financial management in an entrepreneurial business. Successful financial management requires a systematic approach. Effective financial management requires an understanding of how to use numbers to manage and make decisions. All financial forecasts and projections are based on a number of assumptions. Financial forecasts should be based on profit goals that are derived, at a minimum, from the income and wealth goals of the entrepreneur. Monitoring the financial performance of an entrepreneurial business can take many forms; however, all methods for monitoring financial performance use some standard to compare and evaluate actual financial performance.
