Biomed_Entrepreneurship_Lecture_4-_March14.2009

Biomed_Entrepreneurs - Preparing Financial Projections and Requirements for an Entrepreneurial Business Venture TheGoal:Establish

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Preparing Financial Projections and Requirements for an Entrepreneurial Business Venture The Goal:   Establish reasonable  financial projections and requirements for your new biomedical technology business venture. Do not over-estimate Revenues:  Use both the max 15%  Target Market Size rule and the Competitors Market Share  for the same Patient Population as a guideline for Revenue Projections. Do not over-estimate Profit Projections:  Most successful long term businesses have about a 10-20% profit margin and market share. If your estimates are significantly higher, you may have under-estimated
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Identify & Prepare Estimates for Key Financial Metrics Direct Estimated Financial Projection Metrics:  Capital Expenditure Costs- “CAPEX”  Revenues (Sales) _____________________________________ Derived Financial Metric Projections:  Profits/Losses  Cash Flow Analysis - “TAP” and “BEP”  Amount of required “Seed Capital”
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Step One:  Estimate and list required Capital Expenditures  (CAPEX) Any major items the new business will have to acquire in order to be launched: Examples: computers, R & D equipment, lab equipment, specialized manufacturing or processing equipment, one-time software development costs and any other “lump-sum” costs Create the list, itemize where possible, estimate quantities needed, possible sources, and
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This note was uploaded on 08/30/2011 for the course BUSN 1003 taught by Professor Carr,r during the Spring '08 term at Arkansas State.

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Biomed_Entrepreneurs - Preparing Financial Projections and Requirements for an Entrepreneurial Business Venture TheGoal:Establish

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