The Visible Hand - Companion CD
“The Visible Hand” contains a helpful chapter on the subject of Entrepreneurship which includes instruction in assessing the viability of a proposed venture and preparation of a professional Business Plan.
The process uses a simulation model programmed to produce six projection reports:
• Projected Income Statement
• Cash Flow Projection
• Projected Inventory Statement
• Projected Break-even Analysis
• Interest Cost Projection
• Projected Balance Sheet
The book explains the use of the model in considerable detail including examples of reports.
The Compact Disc enables a user to produce these reports efficiently by inserting the variable data and contains tutorial information.
The principle behind this approach to assessment of viability is that management accounting tools used widely in evaluating actual current results can be applied readily to the projections rendering them easily interpretable for financial, statistical and management purposes.
By expressing the data and forecasts as a management accountant would reflect them when they had actually become realised as results, such financial reports can be subjected to professional assessment using viability measures that would be applied to the results of an ongoing venture. The significance is that the emerging viability report and business plan can be expressed in terms that are meaningful to bankers and other potential investors or lenders.