2. Mike Dawes Qualified 1999 FD of 3 Tech Businesses Atrium Software; Software £2m, 30 Employees Third Dimension; S/W & H/W £1m, 10 Emp Blu Wireless; Fabless Chip Dev. Start-up Invest, Provide Financial Direction, Divest Get sacked !
3. Case Study – Stonecube Ltd 2003 Founded Realistic 3D Graphics for Print Finishes 2004 Invested £2k and employed as p/t FD Financial Direction inc Modelling & Control £500K 2005 Angel Investment 2007 Sold to Esko Graphics n x £m
4. Modelling – Why Bother ? See your Vision in numbers Test the model against varying scenarios Define resource requirements Cash, Staff, Time Communicate externally with Investors, Banks Communicate internally with Board & Staff Budget, Actuals, Learn, Re-forecast Be in control and manage cash as entrepreneur
5. Modelling - The Basics Only basic knowledge of spreadsheets needed ! Separate your work - Use tabs Don’t use complex formulas Use check calculations Avoid auto links to other spreadsheets Avoid auto links to accounts package One owner, ideally the entrepreneur Highlight key assumptions (& justify) Summarise/Format outputs for presentation
6. Modelling Outputs Moving Monthly P&L forecast linked to ..... Monthly Cashflow forecast (BS forecast if you really want to) Daily Cashflow – oh dear but sometimes req’d Comparison of Actual P&L to Budget Financial Report for Board
