Financial Statements

Balance sheets (Statement of financial position); The Balance sheet describes the Assets and Liabilities in
the company. Assets are gems that you own and Liabilities are rocks that consume your space.

Income statement; The income statement describes the revenue and expenses. The Revenue is the ‘Net
Income’ and the expenses are your debts and loans.

Statement of cash flow; the inflow and outflow of the company in financial terms including financial
transactions, investing flows and financing flows.

Company Fundamentals
Revenue: The total amount of money that a company generates through the sale of goods and services.
Earnings: All the profit or ‘net income’ generated after deducting all expenses
Valuation: Defining the company’s value using several methods and ratios.

Industry Analysis
1.) Understand your sector and Industry.
2.) Collect Industry data
3.) Analyse Industry Structure: Identify key pointers such as individuals and competition.
4.) Understand Industry trends
5.) Industry competition
6.) Analyse its economic environment
7.) Consider future prospects.

What is Equity Financing?

Equity Financing is when investors are ready to buy shares of your company and they tend to give you
capital instead. It is a way to increase capital and further enhancing your company until it reaches the
Secondary Market (Stock Market)