Hello!
Once again, we have a reading reflection-- this time it's Donald Kuratko's Chapter 11 (Financial Preparation for Entrepreneurial Ventures) in his book Entrepreneurship: Theory, Process, Practice.
The biggest surprise from the reading was all the paperwork there has to be done for a business. While I expected a lot of paperwork, I did not expect it to be so overwhelming.
To be honest, most of this chapter was confusing because of the economics lingo. As much as I appreciate the examples, I feel like there needs to be more explanation. To me, it just looks like there are numbers being thrown around-- how would we actually formulate these lists to fit our own businesses?
I would ask Kuratko two more questions for this chapter:
1) Where do we find a good financial advisor if we are not good at key financial statements? There are many people, me included, who find this sort of planning to be overwhelming. Any advice?
2) What do we need a pro forma for? When do we use this annual projection?
Again, it is hard for me to disagree with the author because I am not an economics major and I have little basis for preparing financial budgets, statements, and break-even analysis.
That's that! See you next week!
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