4/13/2019 Startup Financial Planning - ppt download

Log in 

Advertisements
Search...  Search Advertiseme
Download presentation

We think you have liked this presentation. If you wish to

download it, please recommend it to your friends in any social
system. Share buttons are a little bit lower. Thank you!

ORA Oxford Ahmadeus

Buttons:
Technolog
Summer Boutique
School ahmadeus.com
1
2019 Visit Our
Website Today
Servicing
Cancel Download
Fortune 100
Enterprises,
Midsized Firm
Ultra Investor
Debate with
For Investment
scientists, medics, Strategy.
politicians &
thinkers at the
cutting edge of
their elds OPEN

1 / 47

Advertisements

Audible O cial Site

Audible

Audible Members Get 2 Audiobooks The

First Month Plus 2 Audible Originals.
Start For Free!

DOWNLOAD

 Similar presentations
Startup Financial Planning
Published by Alban King Modi ed 11 months ago

 Embed

 Download presentation
1

Presentation on theme: "Startup Financial Planning"— Presentation transcript:

Advertisements
SPONSORED SEARCHES
1
Presentation Template
Startup Financial Planning
Minder Chen, Ph.D.
PPT Template
Martin V. Smith School of Business and Economics
CSU Channel Islands

https://slideplayer.com/slide/12934442/ 1/7
 2 How Not to Fail Make something people want. Stay focused.
4/13/2019 Startup Financial Planning - ppt download
Measure your growth.
You make what you measure. 
Know if you’re default alive. 
Download presentation
Keep expenses low.
Fundraising gets harder.
Jessica Livingston’s Pretty Complete List on How NotWe
to Fail
think you have liked this presentation. If you wish to
download it, please recommend it to your friends in any social
system. Share buttons are a little bit lower. Thank you!
3 Stay Alive Financially
“default alive” or “default dead.”: Default alive means if your expenses stay the same and your revenue continues to
Buttons:
grow at the rate it’s been growing, you get to breakeven before you run out of money. Default dead means you
don’t.
Trevor Blackwell has made a handy calculator 
the fatal pinch. The fatal pinch is default dead + slow growth + not enough time to x it.  1

4 Startup Growth Calculator

Cancel Download

5 The Knack: How Street-Smart Entrepreneurs Learn to Handle Whatever Comes Up

Numbers run a business. If you don't know how to read them, you're ying blind.—Start tracking them by hand as
soon as you launch your business.
A sale isn't a sale until you collect.—A receivable is like a loan. Make sure your customers are credit-worthy.
When your short-term liabilities exceed your short-term assets, you're bankrupt.—Keep track of how much you're
going to collect and spend in the next twelve months.
Forget about shortcuts. Run a business as if it's forever.—In the long run, your shortcuts will prove to be detours on
the road to achieving your goals.
Cash is hard to get and easy to spend.—Make it before you spend it.
You have no friends in business, only associates.—You can laugh and cry with your employees, but neither you nor
they should forget that it's a business relationship.
Gross margin is the most important number on the income statement.—Don't make the mistake of focusing on the
top line.
Identify your true competitors, and treat them with respect.—Their opinion of you will play a critical role in
determining your reputation.
Culture drives a company.—The boss's most important job is to de ne & enforce it.
The life plan has to come before the business plan.—You need to gure out where you want to go before deciding
how to get there.
(link)

6 Financial Projections Necessary for a Business Plan

Revenue Drives Everything in a Venture
Projection of Revenue – 5 Years
Projected P&L (Pro-forma Income Statement) – 5 Years
Monthly for the First 2 Years then Annually Years 3, 4 & 5
Projection of Cash Flow – 5 Years
Projection Balance Sheet (Pro-forma Balance Sheet)– 5 Years
Goalposts
Startup Costs
Time to First Dollar Received
Time to First Pro t (after Breakeven)
First Round and Anticipated Second Round Financing
Potential Valuation for Exit
For this class: create monthly projections for 2-years

7 The Accounting Equation.

Assets = Liabilities + Equity Assets - Liabilities = Equity
Resources
Source of Financing

8 Assets = Liabilities + Equity

9 Account Equation Guide

10 Accounting Cycle https://www.youtube.com/watch?v=ii91oi0OpXM

11

12 Chart of Accounts Example

https://slideplayer.com/slide/12934442/ 2/7
 13 Debit Credit Asset Liability Equity (Owner Equity, Retained Earning)
4/13/2019 Startup Financial Planning - ppt download
Owner’s
Drawing
Equity (Owner Equity, Retained Earning) 
Download presentation
Expense
Revenue
We think you have liked this presentation. If you wish to
download it, please recommend it to your friends in any social
14 Assets Liquidity High Low Assets 2017 2018 Current Assets Cash
system. Share buttons are a little bit lower. Thank you!
Cash
11,874 Buttons:
Accounts receivable
Inventory
Prepaid expenses
Short-term investments 1
Total current assets
-
Fixed (Long-Term) Assets
Cancel Download
Long-term investments
1,208
PP&E: Property, plant, and equipment
15,340
(Less accumulated depreciation)
(2,200)
Intangible assets (IPs, brand reputation)
(Less Amortization of Intangibles)
Total xed assets
14,348
Other Assets
Deferred income tax
Other
Total Other Assets
High
Liquidity
Low

15 Liability and Owner’s Equity

Liabilities and Owner's Equity
Current Liabilities
Accounts payable
8,060
Short-term loans (Notes Payable)
Income taxes payable
3,145
Accrued salaries and wages
Unearned revenue
Current portion of long-term debt
Total current liabilities
11,205
Long-Term Liabilities
Long-term debt
3,450
Deferred income tax
Other
Total long-term liabilities
-
Owner's Equity
Owner's investment
7,178
Retained earnings
4,389
Total owner's equity
11,567
Total Liabilities and Owner's Equity
26,222
Short
Time to Pay
Long

16 Working capital decision: CA & CL C/S: Common Stocks (at IPO and SEO)
SEO: Seasonal Equity O ering
Stock issues before IPO Owner Equity
Corporate Bonds: e.g., Apple issues 30-year bonds for 4% interest rate.
https://slideplayer.com/slide/12934442/
Bond Rating: 3/7
BBB investment grade bonds
4/13/2019 Startup Financial Planning - ppt download
Below BBB: Junk bonds High risk and high return


17 Financial Ratios Current ration = CA / CL Download presentation
Quick Ratio = (CA-Inventory) / CL
Cash Ratio = Cash / CL
We think you have liked this presentation. If you wish to
download it, please recommend it to your friends in any social
system. Share buttons are a little bit lower. Thank you!
18 Debits/Credits Rules
Basic Equation Buttons:
Assets
=
Liabilities
+ 1
Owner’s Equity
Expanded Basic Equation
Debit
Credit Cancel Download
Balance Sheet Income Statement
=+-
Asset
Liability
Equity
Revenue
Expense
The equation must be in balance after every transaction. For every Debit there must be a Credit.

19 Resources Learn Accounting in 1 HOUR First Lesson: Debits and Credits

DC ALE LER

20 (video) https://www.youtube.com/watch?v=fBTJCxBrbCk

21 Balance Sheet and Income Statement Mapping

22 http://www. authorstream

23 Relationships of the Three Key Financial Statements

24 Relationships among Financial Statements

25 http://www. investopedia

30 From BMC to Financial Statements

Business Model Canvas to Financial Plan
Balance Sheet

31 BMC for Lemonade Inc.

Pro t =Revenues - Costs

32 Capital Expenditures
CAPEX: Capital expenditures (investment) are funds used by a company to acquire or upgrade physical assets such
as property, industrial buildings or equipment. If an expense is a capital expenditure, it needs to be capitalized. This
requires the company to spread the cost of the expenditure (the  xed cost) over the useful life of the asset. 
(video)
Operational Costs

33 Operational Costs
An operating expense (OpEx) is an  expense  a business incurs through its normal business operations. It include
rent, production or inventory costs, marketing, payroll, insurance and funds allocated toward  research and
development. One of the typical responsibilities that management must contend with is determining how low
operating expenses can be reduced without signi cantly a ecting a rm's ability to compete with its competitors.
 

35 Break-Even Analysis
https://slideplayer.com/slide/12934442/ 4/7
 36 Break-Even Analysis Price: $10 per cup Cost: $2 per cup
4/13/2019 Startup Financial Planning - ppt download
Fixed Costs: $150,000


Download presentation
37 Wisdoms from The Knack
Numbers run a business. If you don't know how to read them, you're ying blind.—Start tracking them as soon as
you launch your business. We think you have liked this presentation. If you wish to
A sale isn't a sale until you collect.—A receivable is like a loan. Make
download surerecommend
it, please your customers are credit-worthy.
it to your friends in any social
Cash is hard to get and easy to spend.—Make it before you spend
system. it.
Share buttons are a little bit lower. Thank you!
When your short-term liabilities exceed your short-term assets, you're bankrupt.—Keep track of how much you're
going to collect and spend in the next twelve months. Buttons:
Gross margin is the most important number on the income statement.—Don't make the mistake of focusing on the
top line.
Numbers run a business. If you don't know how to read them, you're ying blind.—Start tracking them by hand as
soon as you launch your business. 1
A sale isn't a sale until you collect.—A receivable is like a loan. Make sure your customers are credit-worthy.
When your short-term liabilities exceed your short-term assets, you're bankrupt.—Keep track of how much you're
going to collect and spend in the next twelve months.
Cancel Download
Forget about shortcuts. Run a business as if it's forever.—In the long run, your shortcuts will prove to be detours on
the road to achieving your goals.
Cash is hard to get and easy to spend.—Make it before you spend it.
You have no friends in business, only associates.—You can laugh and cry with your employees, but neither you nor
they should forget that it's a business relationship.
Gross margin is the most important number on the income statement.—Don't make the mistake of focusing on the
top line.
Identify your true competitors, and treat them with respect.—Their opinion of you will play a critical role in
determining your reputation.
Culture drives a company.—The boss's most important job is to de ne and enforce it.
The life plan has to come before the business plan.—You need to gure out where you want to go before deciding
how to get there.
 

38 Overview of the Financial Planning Process

Identify all of your sources of revenue
- Must document your revenue assumptions
Cash required to start the business
Cash required to operate the business
Revenue by month from sales and other sources
Identify all of your costs
Startup costs
Monthly operating costs
Fixed costs vs. variable costs
Breakeven analysis
Displays total income vs. total expenses by month
Identi es when you will need more cash

39 Financial Templates

40 Financial Templates

41 Financial Templates

42 Break Even Analysis

43 Cash Flow Forecast

44 Business Budget

45 Income Statement
© 2008 TAB Boards International, Inc
46 Balance Sheet Understanding Financial Statements.
Financial Templates

47 Financial Templates

https://slideplayer.com/slide/12934442/ 5/7
4/13/2019 Startup Financial Planning - ppt download


Download presentation

We think you have liked this presentation. If you wish to

download it, please recommend it to your friends in any social
system. Share buttons are a little bit lower. Thank you!

Buttons:

1
Download ppt "Startup Financial Planning"

Cancel Download

 Similar presentations

https://slideplayer.com/slide/12934442/ 6/7
4/13/2019 Startup Financial Planning - ppt download


Download presentation

We think you have liked this presentation. If you wish to

download it, please recommend it to your friends in any social
system. Share buttons are a little bit lower. Thank you!

Buttons:

Cancel Download

© 2019 SlidePlayer.com Inc. Feedback About project

All rights reserved.
Privacy Policy SlidePlayer
Feedback Terms of Service

Search... Search

https://slideplayer.com/slide/12934442/ 7/7