this worksheet gives tells you how to do the budget on the next sheet
work though each step and find out how much cash you will need to invest to start the venture
rows 2 and 3 tell you what your cumulative retained earnings (post tax profits), and cumulative cash flows, are
the lowest point in row 3 is what we call the "bottom of death valley" - the worst cash position in your planned launch.
this will need to be financed, in part perhaps by you, in part perhaps by external "venture capitalists"
row 9 contains a forecast of your sales for the launch phase, starting in month 3
the sales of a new product usually take the form of an "S" curve - slow at the start, accelerating, and then maturing
to make it easy a formula for "S" curved sales is already in the spreadsheet
all you have to do is estimate the sales you might make in the last month in the first year - see how to do it on the sales forecas
you order materials to make bleaters in row 12: but how many will you make?
row 13 shows you the stock you will carry forward each month - best to have enough stock to cover any sudden surges in the d
row 14 assumes that your machinery will be 100% efficient. But will it? Maybe put the efficiency down in month 2, to say 50 rath
then maybe get in more raw material in row 12, and budget for a machine expert in row 15, to get the machine running really w
row 17 shows if you need another new machine to make the bleaters
if "yes" appears in row 17, you can buy a new machine in row 18 (by putting in the capital value of 55000)
or, you can lease a new machine in row 18, (again by putting in the capital value of 55000)
in row 21 you recruit representatives (sales people) in the north island. How many, though? Too many and they will be slack, to
or if you want to, you can recruit some reps for the south island in row 22
in this row, number 25, you can spend some money on supporting the customers in the eirports and high streets segment, with
or perhaps support the customers in the gift and specialist shops, in row 26
in row 28 you can promote the bleaters with advertisements in the Tourist Times, if you want to
and in row 29, you can pay the research institute to do some more research into the "beauty of the bleat". Would that be a good
in row 31 you should put your average price to the customers - the "going price" at the moment is $30, but your product is supe
in row 33 put the % of invoices you will pay at the end of each month. It should be 100! But it rarely is, in real life
and, because people may be slow in paying you, will you invest in a debtors control system to help identify slow payers? How m
now look at row 3: it shows how much cash you need. Lets assume that you and your group have $300000 to put in. So, put it i
the venture capitalist will come up with the balance - enough to cover the negative cash in row 3 - calculate it and put the vc cas
when you put in your cash in row 36, the bank agrees an overdraft of 65000 automatically
the only thing not yet done - you may want to change the overhead budget cells p13 to p32
once this is done we are ready to launch the firm - which we will do on the "Business is Awesome" day
bring your budget on a laptop and we will see how well your firm does in reality
tive cash flows, are
on in your planned launch.
ating, and then maturing
see how to do it on the sales forecast sheet
to cover any sudden surges in the demand
ency down in month 2, to say 50 rather than 100, and work up from that to 100 by month 6
, to get the machine running really well
alue of 55000)
? Too many and they will be slack, too few and you will not get the sales
ports and high streets segment, with displays and the like
ty of the bleat". Would that be a good idea?
ment is $30, but your product is superior
it rarely is, in real life
to help identify slow payers? How much would you spend on that?
p have $300000 to put in. So, put it into cell b36
row 3 - calculate it and put the vc cash into b37
Sales Forecast
how many bleaters might you sell in the first hit into the market? Replace the red figures in column d with your own figures
whole market $ per annum 60000000 suggestions
"won't buy" % 45 33000000 30% - 45% % of potential customers who will never take a new product
best segment % 55 18150000 40% - 55% the best target to hit - the most likely to place orders - those
your share % 40 7260000 20% - 40% "first in best dressed". The pioneer usually gets the highest
monthly divide by months 12 605000 12
units divide by price 30 20167 30 $30 is the going price - but you may charge more in row 34
The "S" curve sales forecast shown in the graph below is fed automatically into the gr8bleat budget sheet, row 9
25000
20000
15000
Series1
10000
5000
0
1 2 3 4 5 6 7 8 9 10
gures in column d with your own figures
al customers who will never take a new product until it is proven
et to hit - the most likely to place orders - those "favourably disposed to buy"
dressed". The pioneer usually gets the highest share
oing price - but you may charge more in row 34 of the gr8bleat budget sheet
gr8bleat budget sheet, row 9
contact me on rhigham@business.otago.ac.nz 0 0 0 0 0 0 0 0
Profitability. total equity 300000 280423 247824 222163 205001 203298 226498 287515
Cash Flow. Bank Balance 300000 266983 132887 1940 -125789 -243201 -341461 -402226
post tax roe %
month 1 month 2 month 3 month 4 month 5 month 6 month 7 month 8
exit value of shares $m actual budget budget budget budget budget budget budget
sales forecast automatic from forecast sheet: bleaters 101 262 807 1815 3529 6453
please see sales forecast sheet you will be changing all the red figures below - see the guidelines sheet
buy raw material: number of units 7000 7000 7000 7000 7000 7000 7000 7000
stock carried forward (do not alter!!) 7000 13899 20637 26830 32015 35486 36033
your forecast machine efficiency: % 100 100 100 100 100 100 100
machine technician: wage/mth$ 50 50 50 50 50 50
is a new plant needed? If yes, either …
buy plant: capital value, $55000 each 0 0 0 0 0 0 0 0
... or, lease plant: capital value,$55000 each 55000 0 0 0 0 0 0
number of reps located in North Island 1 1 1 1 1 1
number of reps located in South Island 1 1 1 1 1 1
support target segments: samples, displays
airports and high streets $ budget 0 0 0 0 0 0 0 0
gift shops and specialists $ budget 0 10 10 10 10 10 10 10
promotion, ads: $ budget 0 0 0 20 20 20 20 20
research and development (maf) $budget 0 0 0 0 0
your average delivered price/unit: $ 31 31 31 31 31 30
pay creditors (100=100% due date) 70 70 70 70 70 70 70 70
buy debtors computer system: $ 0 0 0 0 0
entrepreneurs' equity: your money $ 300000 0 0 0 0 0 0 0
venture equity: professional investors$ 0 0 0 0 0 0 0 0
overdraft limit (1% interest/month) 65000 65000 65000 65000 65000 65000 65000 65000
you are ready to launch the venture!!
wait for the business is awesome day to launch
don't touch any of the cells below this row
in planning payoffs: units needing to be sold to:
cover segmentation cost 1 1 1 1 1 1
cover promotion cost 0 1 1 1 1 1
above this line: your budgets
below this line: results of your decisions
actual budget budget budget budget budget budget budget
sales: units 0 0 101 262 807 1815 3529 6453
unit sales due to price 0 0 0 0 0 0 0 0
" segmentation 0 0 0 0 0 0 0 0
" promotion 0 0 0 0 0 0 0 0
" r and d 0 0 0 0 0 0 0 0
basic sales (good for the reps) 0 0 0 0 0 0 0 0
serious enquiries for supply 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
financial indicators
break even: how many units need to be sold 2131 1838 1830 1850 1986 2261
efficiency % 100 100 100 100 100 100
direct cost per bleater $ 16 15 15 15 15 15 15
debtors outstanding: days 71 69 66 65
current ratio times 1.9 1.8 1.5 1.3 1.3 1.4
gross margin % 50 50 50 51 51 49
proprietorship % 46 43 33 27 26 29
gearing (loans+od/equity) times 0.3 0.3 1.0 1.6 1.8 1.6
value of equity (p/e = 5): $m negative negative negative negative 1.02 2.61
post tax ROE % negative negative negative negative 68 174
from here on the spreadsheet does its own calculating:
do not change the formulae!.
profit / loss account
sales local $ 0 0 3126 8127 25007 56265 109404 193600
stock used (cogs) 0 0 1566 4053 12395 27748 53754 97937
= G P Gross
profit $ 0 0 1560 4074 12611 28517 55651 95663
overheads manufacturing: $ 0 4167 4475 4425 4383 4300 4842 4217
general 0 7000 6563 6813 7000 6313 6125 6375
sales: reps + overhead + training: $ 0 5833 19858 15250 15175 14917 15417 16842
ads, samples and transport: $ 0 10 10 30 30 30 30 30
o/d interest, lease$ 0 1367 2065 2042 2020 3508 4896 6054
Total overheads: $ 0 18377 32970 28560 28608 29067 31309 33517
Pretax profit: $ 0 -18377 -31410 -24486 -15997 -551 24342 62146
allow 1% dep: $ 0 1200 1188 1176 1164 1153 1141 1130
tax 28% balance: $ 0 0 0 0 0 0 0 0
retained earnings: $ 0 -19577 -32598 -25662 -17162 -1703 23201 61017
0 1560 4074 12611 28517 55651 95663
Stocks available for sale
stock b/f: units 0 0 7000 13899 20637 26830 32015 35486
stock b/f: $ 0 0 108700 214874 317089 410130 487529 538348
wip complete: units 0 7000 7000 7000 7000 7000 7000 7000
wip complete: $ 0 108700 107740 106268 105436 105148 104572 102940
stock bt in: units 0 0 0 0 0 0 0 0
stock bt in: $ 0 0 0 0 0 0 0 0
stock available: units 0 7000 14000 20899 27637 33830 39015 42486
total cost: $ 0 108700 216440 321142 422525 515278 592101 641288
average cost: $/unit 0 16 15 15 15 15 15 15
stock c/f units 0 7000 13899 20637 26830 32015 35486 36033
stock c/f $ 0 108700 214874 317089 410130 487529 538348 543351
debtors b/f local: $ 0 0 0 3126 9378 28664 68304 140141
collected local: $ 0 0 0 1876 5720 16625 37567 75676
total collected: $ 0 0 0 1876 5720 16625 37567 75676
debtors c/f local $ 0 0 3126 9378 28664 68304 140141 258065
creditors b/f $ 0 73500 95550 102165 104150 104745 104923 104977
creditors paid $ 0 51450 66885 71516 72905 73321 73446 73484
creditors unpaid $ 0 22050 28665 30650 31245 31423 31477 31493
new creditors $ 73500 73500 73500 73500 73500 73500 73500 73500
creditors c/f $ 73500 95550 102165 104150 104745 104923 104977 104993
gst on outputs 0 0 391 1016 3126 7033 13676 24200
gst on inputs: materials etc $ 9188 9188 9188 9190 9190 9190 9190 9190
gst on inputs: capital items: $ 0 0 0 0 0 0 0 0
gst paid / received $ 9188 9188 8797 8174 6064 2157 -4486 -15010
Cash book: cash in
from shareholders 300000 0 0 0 0 0 0 0
venture equity pref shares 0 0 0 0 0 0 0 0
loans 72000 0 0 0 0 0 0
from debtors local 0 0 0 1876 5720 16625 37567 75676
gst from invoiced sales 0 0 0 0 0 0 0 0
gst repaid from government 0 0 0 0 0 0 0 0
total cash in 300000 72000 0 1876 5720 16625 37567 75676
cash out
to plant creditors 0 0 0 0 0 0 0 0
to other creditors 0 0 10 10 30 30 30 30
to cash overheads 0 18367 32960 28530 28578 29037 31279 33487
to creditor overheads 0 51450 66885 71516 72905 73321 73446 73484
to wip labour 0 35200 34240 32768 31936 31648 31072 29440
to tax 0 0 0 0 0 0 0 0
to cash purchases 0 0 0 0 0 0 0 0
gst paid out to creditors 0 0 0 0 0 0 0 0
gst paid to government 0 0 0 0 0 0 0 0
to other purchases 0 0 0 0 0 0 0 0
total cash out 0 105017 134095 132823 133449 134036 135827 136441
Bank at start 0 300000 266983 132887 1940 -125789 -243201 -341461
cash movement 300000 -33017 -134095 -130948 -127729 -117411 -98260 -60765
bank at end 300000 266983 132887 1940 -125789 -243201 -341461 -402226
Balance sheet
shares 300000 300000 300000 300000 300000 300000 300000 300000
retained earnings 0 -19577 -52176 -77837 -94999 -96702 -73502 -12485
Total Equity 300000 280423 247824 222163 205001 203298 226498 287515
plus loans 0 72000 72000 72000 72000 72000 72000 72000
Capital Invested 300000 352423 319824 294163 277001 275298 298498 359515
represented by fixed assets
plant b/f 120000 120000 118800 117612 116436 115272 114119 112978
allow 1% depreciation 0 1200 1188 1176 1164 1153 1141 1130
plant c/f 120000 118800 117612 116436 115272 114119 112978 111848
and, current assets 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50
bleater stock 73500 73500 73500 73500 73500 73500 73500 73500
wip 0 108700 0 0 0 0 0 0
finished stock c/f 0 214874 317089 410130 487529 538348 543351
debtors 0 0 3126 9378 28664 68304 140141 258065
bank 300000 266983 132887 1940 0 0 0 0
Total Current Assets CA 373500 449183 424387 401906 512294 629333 751989 874916
less Current Liabilities
plant credit 120000 120000 120000 120000 120000 120000 120000 120000
material credit 73500 95550 102165 104150 104745 104923 104977 104993
overhead credit 0 10 10 30 30 30 30 30
tax provision 0 0 0 0 0 0 0 0
bank overdraft 0 0 0 0 125789 243201 341461 402226
Total Curr Liab. CL 193500 215560 222175 224180 350564 468154 566468 627249
Working Capital CA-CL=WC 180000 233623 202212 177727 161729 161179 185521 247667
Fixed assets + Work Cap 300000 352423 319824 294163 277001 275298 298498 359515
below this line are factors for a simulation exercise
0 0 1 1 1 1 1
0 0 9 17 29 63 98 133
40 90 120 230 400 800 1200 1700
1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
300 900 2200 3100 3500 3700 4000 4150
1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
0.90 0.90 0.90 0.90 0.90 1.02
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.90 0.90 0.90 0.90 0.90 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.02
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0 2 2 2 2 2 2
2 2 2 2 2 2
2.0 2 2 2 2 2
0 0 240 460 800 1600 2400 3400
0 0 240 460 800 1600 2400 3400
0 0 216 414 720 1440 2160 3468
0 0 216 414 720 1440 2160 3468
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.30 0.30 0.30 0.30 0.30 0.30
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.30 0.30 0.30 0.30 0.30 0.30
0.00 0.00 0.30 0.30 0.30 0.30 0.30 0.30
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0 0 0 0 0 0 0 340
0 0 0 0 0 0 0 340
0 0 0 0 0 0 0 340
0.90 0.90 0.90 0.90 0.90 1.02
0 0 0 0 0 0
0 0 101 363 1170 2985 6514 12967
0 0 7000 14000 21000 28000 35000 42000
0 6899 13637 19830 25015 28486 29033
0 0 0 0 0 0 0 0
0 4167 4425 4375 4333 4250 4792 4167
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 7000 6563 6813 7000 6313 6125 6375
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
needed 1 1 1 1 1 1 1 1
installed 1 1 1 1 1 1 1 1
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 32000 32000 32000 32000 32000 32000 32000
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 1 1 1 1 1 1 1
0 35200 34240 32768 31936 31648 31072 29440
35200 34240 32768 31936 31648 31072 29440
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0
31 31 31 31 31 30
101 262 807 1815 3529 0
0
55000 54083 53182 52296 51424 50567 49724 48895
917 901 886 872 857 843 829
54083 53182 52296 51424 50567 49724 48895
451 443 436 429 421 414 407
0 7000 13899 20637 26830 32015 35486 36033
#REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
120
100
0 0 100 100 100 100 80 100 100
0 0 50 50 50 51 51 49
60
40
40
20
0
1 2 3 4 5 6
1 1 1 0.60 0.61 0.58 0.55 0.54
0.62 0.57 0.58 0.59 0.62 0.64 0.66
0.62 0.57 0.58 0.59 0.62 0.64 0.66
55 58 62 65 87 98 109
sales 101 262 807 1815 3529 6453
stock availaible 7000 13899 20637 26830 32015 35486
0 0 0 0
431733 648614 908769 833311
-389251 -252489 -35666 -151127
month 9 month 10 month 11 month 12
budget budget budget budget
overheads budget annual monthly
11898 16738 19360 20167 300000 fill in here don't touch
7000 7000 7000 7000
31135 21396 9036 0 annual selling overhead 70000 5833
100 100 100 100
50 50 50 50 annual salary per representative 45000 3750
training budget per representative 3000
0 0 0 0
0 0 0
manufacturing overhead 50000 4167
1 1 1 1
1 1 1 1 general overhead 75000 6250
195000 1000000
0 0 0 0 800000
10 10 10 10
600000
20 20 20 20 400000
0 0 0 0
200000
30 30 30 30 0
1 3
70 70 70 70 -200000
0 0 0 0 -400000
0 0 0 0 -600000
0 0 0 0
65000 65000 65000 65000
1 1 1 1
1 1 1 1
budget budget budget budget
11898 16738 19360 20167
0 0 0 0 actual actual
0 0 0 0 sales: units 0 0
0 0 0 0
0 0 0 0 unit sales due to price 0 0
0 0 0 0 " #DIV/0!
segmentation #DIV/0!
0 0 0 0 " promotion#DIV/0! #DIV/0!
0 0 0 0 " r and d #DIV/0! #DIV/0!
#DIV/0!
basic sales (good for the reps) #DIV/0!
2148 2207 2083 1793 serious enquiries for supply 0 0
100 100 100 100 makes spreadsheet alive 1 1
15 15 15 17
64 60 58 56
1.6 2.3 4.3 3.1
50 50 50 51
39 54 73 65
1.1 0.5 0.1 0.3
6.10 9.16 10.97 11.81
407 610 732 787
356950 502150 580800 605000
179594 251062 288054 296401
177356 251088 292746 308599
4717 4425 4383 4300
6094 5975 6656 6713
14417 16083 15500 14083
30 30 30 30
6762 6586 4925 2304
32019 33100 31495 27430
post tax
145337 217988 261251 281169 182760
1118 1107 1096 1085
0 0 0 0
144218 216881 260154 280084
177356 251088 292746 308599
36033 31135 21396 9036
543351 465865 316335 129301
7000 7000 7000 7000
102108 101532 101020 100508
0 0 0 4131
0 0 0 115654
43033 38135 28396 20167
645459 567397 417355 345463
15 15 15 17
31135 21396 9036 0
465865 316335 129301 49061
258065 467918 698676 930138
147097 271392 349338 483672
147097 271392 349338 483672
467918 698676 930138 1051466
104993 104998 104999 105000
73495 73499 73500 73500
31498 31499 31500 31500
73500 73500 73500 73500
104998 104999 105000 105000
44619 62769 72600 75625
9190 9190 9190 9190
0 0 0 0
-35429 -53579 -63410 -66435
0 0 0 0
0 0 0 0
0 0 0 0
147097 271392 349338 483672
0 0 0 0
0 0 0 0
147097 271392 349338 483672
0 0 0 0
30 30 30 30
31989 33070 31465 27400
73495 73499 73500 73500
28608 28032 27520 27008
0 0 0 355541
0 0 0 115654
0 0 0 0
0 0 0 0
0 0 0 0
134123 134630 132514 599132
-402226 -389251 -252489 -35666
12974 136762 216823 -115461
-389251 -252489 -35666 -151127
300000 300000 300000 300000
131733 348614 608769 533311
431733 648614 908769 833311
72000 72000 72000 72000
503733 720614 980769 905311
111848 110729 109622 108526
1118 1107 1096 1085
110729 109622 108526 107441
10.50 10.50 10.50 10.50
73500 73500 73500 73500
0 0 0 0
465865 316335 129301 49061
467918 698676 930138 1051466
0 0 0 0
1007283 1088511 1132939 1174028
120000 120000 120000 120000
104998 104999 105000 105000
30 30 30 30
0 0 0 0
389251 252489 35666 151127
614279 477519 260696 376157
393004 610992 872243 797871
503733 720614 980769 905311
20167
1 1 1 1
164 184 188 223
2000 2200 2500 3000
1.00 1.00 1.00 1.00
4250 4300 4400 4500
1.00 1.00 1.00 1.00
1.02 0.90 0.80 0.70 5
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.70
0.00 0.00 0.80 0.00
0.00 0.90 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
1.02 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
2 2 2 2 4
2 2 2 2
2 2 2 2
4000 4400 5000 6000
4000 4400 5000 6000
4080 3960 4000 4200
4080 3960 4000 4200
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 -0.20 -0.20 -0.20
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0.00 -0.20 -0.20 -0.20
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
0 0 0 0
0 0 0 0
0 0 0 0
1.02 0.90 0.80 0.70
0 0 0 0
24866 41604 60964 81131
49000 56000 63000 74131
24135 14396 2036 -7000
0 0 0 0
4667 4375 4333 4250
0 0 0 0
0 0 0 0
0 0 0 0
6094 5975 6656 6713
0 0 0 0
0 0 0 0
1 1 1 1
1 1 1 1
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
32000 32000 32000 32000
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
1 1 1 1
28608 28032 27520 27008
28608 28032 27520 27008
42155 111557 194806 170660
42155 111557 194806 170660
0 0 0 0
30 30 30 30
0 16738 38720 60500
48080 47279 46491 45716
815 801 788 775
48080 47279 46491 45716
401 394 387 381
31135 21396 9036 0
#REF! #REF! #REF! #REF!
100 100 100 100
50 50
Series1 50 51
Series2
6 7 8 9 10 11 12
0.57 0.58 0.50 0.52
0.68 0.69 0.71 0.73
0.68 0.71 0.73 0.73
115 120 123 125
11898 16738 19360 20167
36033 31135 21396 9036
Series1
Series2
3 5 7 9 11
actual actual budget now now now
0 0 0 #VALUE! #VALUE! #VALUE!
0 0 0 #VALUE! #VALUE! #VALUE!
#DIV/0! #DIV/0! 0 #VALUE! #VALUE! #VALUE!
#DIV/0! #DIV/0! 0 #VALUE! #VALUE! #VALUE!
#DIV/0! #DIV/0! 0
#DIV/0! #DIV/0! 0 0 0 0
0 0 0
1 1
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
#VALUE! #VALUE! #VALUE!
decision on price
margin gained / lost on price $
WHAT ACTUALLY HAPPENS
ONCE YOU FINANCE THE DEAL
REMEMBER DEATH VALLEY
REMEMBER 2 : 6 : 2
ALWAYS: HAVE A PLAN B
insert your
birthdays
in the month
AFC sales $m 0 ###### ######
0
cogs $m 0 ###### ######
0
gross profit $m 0 ###### ######
overheads $m 10 21
debt service $m 0 0
pretax profit $m ###### ######
tax $m ###### ######
post tax earnings $m ###### ######
depreciation $m 2 6
capital / terminal value $m -55
ebit $m 0.0 ###### ######
npv at chosen wacc $m 0.0 ###### ######
venture investor cash in $m 0.0
venture investor increase times
######
######
######
###### #DIV/0! 20 80
#DIV/0! ###### ######
#DIV/0! ###### ######
#DIV/0! ###### ######
#DIV/0! ###### ######
#DIV/0! ###### ######
#DIV/0! ###### ######
#DIV/0! ###### ######
#DIV/0! ###### ######
#DIV/0! ###### ######
###### ######
##### ##### #####
##### ##### #####
##### ##### #####
33 45 60
0 0 0
##### ##### #####
##### ##### #####
##### ##### #####
6 6 6
15
##### ##### #####
##### ##### #####
#####
#####
#####
#####
#####
150 180 190
##### ##### #####
##### ##### #####
##### ##### #####
##### ##### #####
##### ##### #####
##### ##### #####
##### ##### #####
##### ##### #####
##### ##### #####
##### ##### #####
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
decision on price
margin gained / lost on price $
stock c/f profit
40000
sales cash
35000
30000
25000
Series1
20000
Series2
15000
10000
5000
0
1 2 3 4 5 6 7 8 9 10
efficiency
gross margin g profit
120
net profit
100
80
Series1
60
Series2
40
20
0
1 2 3 4 5 6 7 8 9 10
1000000
800000
600000
400000
Series1
200000
Series2
0
1 3 5 7 9 11
-200000
-400000
-600000
350000
300000
250000
200000
Series1
150000
Series2
100000
50000
0
1 2 3 4 5 6 7 8 9 10
-50000