Financial plan: translating your business model into figures What are the key parts of your financial plan? What is the logic behind it?

1. Finance for Startups workshop
Translating your business model into figures
What are the key parts of your financial plan?
What is the logic behind it?
Martin van Wunnik
Xavier Corman
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2. Sponsors
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3. Financial Plan
• Financial Plan
– Why?
– How?
– What (results) ?
• Individual Q&A
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4. Who are we ?
Martin van Wunnik
Xavier Corman
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5. This presentation is available for free:
http://www.slideshare.net/xaviercorman
http://www.slideshare.net/FinanceCoach24
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6. Why a Financial Plan ?
If you don't think about the future,
you cannot have one.
John Golsworthy
where you want to go
You need to know
how you are supposed to get there
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7. http://www.monstarterkit.be/bzplan.cfm
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9. Financial Plan
Content
– Assumptions
– Profit & Loss
– Balance Sheet / Investment
– Cash-Flow -> Cash needed
– Valuation of the project
– Profitability / return of the project
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10. Financial Plan in 10 min
• Don’t waste your time in developing a huge
financial plan before to be sure that your
project is viable !
• In many case, in less than 10 minutes, you can
see if your idea worst something.
• How to make a very quick financial plan ?
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11. Financial Plan in 10 min /questions
What are your revenues ?
What are your costs ?
What are your investments ?
How many persons for your project ?
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12. Accounting: notions
• Balance Sheet – Bilan – Balans
• Profit & Loss – Compte de résultat – Winst-en Verliesrekening
• Cash-flow – Trésorerie – Schatkist
• Financial Plan – Plan financier – Financieel Plan
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13. Accounting: Balance Sheet
ACTIVE PASSIVE
Equity + Reserves
(Capital/Kapitaal)
Non Current Assets
(Actifs Immobilisés/
Vast Activa)
LT Debts
Current Assets
(Actifs circulants/
Vlottend Activa) ST Debts
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14. Accounting: Profit & Loss (P&L)
COGS (Cost of Sales)
General Expenditures
Personnel Costs
Revenues (Sales…)
Depreciation
Financial cost
Taxes
EBIT
Profit
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15. Financial Plan / Profit & Loss
Revenues (Sales…)
COGS (Cost of Sales)
General Expenditures
COSTS
Personnel Costs
Financial cost
Depreciation CASH
CASH-FLOW IF NEGATIVE DRAIN
Profit
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16. Financial Plan / Prerequisites &
Assumptions
• Financial plan for 3 to 5 years
• Monthly or Quarterly base
• Excel or Calc is your friend
• Start by listing your main assumptions
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17. Tips for assumptions
• Office: 10-25 m²/person
• EUR 100/m²/year + 15 % for maintenance
[ or COWORKING !]
• Insurances: 1 -3 % of revenues
• Marketing: define a % of revenues + starting
investment
• Don’t forget lawyers, accountant, social
secretary, office supplies…
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18. • Car leasing : 300 – 800 EUR per month
• Salary : Gross monthly x 19,2 = Yearly cost
• Revenues: worst-case & best-case
– First 3 to 6 months: 0 EUR
– Maximum ‘billable’ hours per day
(one-off events, holidays, prospecting, etc...)
• Own salary : “0 EUR” / Realistic
different ‘hats’
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19. Financial Plan / Investments
List all your scheduled investments
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
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20. Required Cash-Flow
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21. Questions & Answers
Free download:
http://www.slideshare.net/XavierCorman
http://www.slideshare.net/FinanceCoach24
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