Does your business idea work financially? Visualize your first months or years of business from a financial viewpoint using a simple spreadsheet or just basic arithmetic. Answer questions such as, “How soon will I break even?” or “How much money will I need to put into the business?” Then play “what-if” with the results. What if I sell more? What if I cut expenses? What if I drop an unsuccessful product? See what you need to do to get where you want to be. Then summarize it all in Profit & Loss projections to use as guidance for a new business, justification for a loan, or a check on the progress of an existing business.

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