Sample Financial Statements for Startups Seeking Investors
For startups looking to attract investors, having well-prepared financial statements is crucial. These documents provide valuable insights into the company’s financial health, performance, and potential for growth. In this article, we will provide a guide on creating sample financial statements that can help startups make a strong impression on potential investors.
1. Income Statement
The income statement, also known as the profit and loss statement, provides a summary of the company’s revenues, expenses, and profits over a specific period. It helps investors understand how the business generates revenue and manages costs. A sample income statement for a startup seeking investors may include:
- Revenue: Detailing sources of income, such as product sales, services rendered, or licensing fees.
- Cost of Goods Sold (COGS): Direct costs associated with producing goods or services.
- Gross Profit: Revenue minus COGS, showing the profitability of core operations.
- Operating Expenses: Including salaries, marketing, rent, utilities, and other overhead