Instructor Resource
Neck, Entrepreneurship, 1e
SAGE Publishing, 2018
Chapter Exercises and Projects
Appendix 2: Financial Projections For Startups
Chapter Learning Objectives:
A.1 Explain the purpose of financial projections for startups.
A.2 Describe financial statements as an essential part of financial projections.
A.3 Clarify the relationship between the three financial statements.
Proposed Activities
Activity 1: Financial Statements
(This can be done solo or as a team exercise; it can be used for online, face-to-face,
or a blended format)
Describe three essential financial statements and create mock statements for a
hypothetical company.
Learning Objectives:
A.1 Explain the purpose of financial projections for startups.
A.2 Describe financial statements as an essential part of financial projections.
A.3 Clarify the relationship between the three financial statements.
Activity 2: Cash conversion cycle (CCC)
Instructor Resource
Neck, Entrepreneurship, 1e
SAGE Publishing, 2018
Describe the cash conversion cycle? What information from the financial statements will
you need to calculate the CCC? Why does the CCC matter to the entrepreneur?
Learning Objectives:
A.1 Explain the purpose of financial projections for startups.
A.4 Describe the journey of cash through the cash conversion cycle.
Activity 3: Pro Forma Statement
(This can be done solo or as a team exercise; it can be used for online, face-to-face,
or a blended format)
Develop a Pro Forma Statement based on a hypothetical company. What are the main
assumptions you will need to account for?
Learning Objectives:
A.5 Discuss how to build a pro forma financial statement.
Activity 4: Primary and Secondary Research
(This can be done solo or as a team exercise; it can be used for online, face-to-face,
or a blended format)
Learning Objectives:
A.1 Explain the purpose of financial projections for startups.