ABSTRACT
A spreadsheet tool allows the entrepreneur to adjust plans, and develop the beginnings of a system for the financial management of the entrepreneurial venture. Once the entrepreneur establishes the wealth and income goals for the business that will serve as the foundation of financial planning, the actual spreadsheet modelling can begin. The next section discusses how the format of the income statement can help the entrepreneur better understand the business. The top of the income statement starts with the revenue, followed by the expenses that most professionals would consider direct expenses. The balance left after indirect expenses are covered is called Earnings Before Interest and Taxes (EBIT). EBIT represents the income earned by the company before considering interest and income taxes. This chapter has presented an integrated spreadsheet model that allows the entrepreneur to place all forecasts, assumptions, goals, and objectives into a single spreadsheet.
