Financial Concepts for Running your Business (AmCham workshop April 24th 2012)

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Get the fundamentals right with three simple overviews …

Get the fundamentals right with three simple overviews
- Accounting basics
- Entrepreneurs/starters (financial plan)

Where to look to find the main information
- Balance sheet - profit & loss statement

Cash crunch risk, grow or survive?
- Cash flows & funding in times of crisis

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  • 1. Financial Concepts for Running your Business24/4/2012
  • 2. Product & Service level Finance & Accounting level24/04/2012 Xavier Corman | Martin van Wunnik 2
  • 3. Who we are ? Martin van Wunnik Xavier Corman24/04/2012 Xavier Corman | Martin van Wunnik 3
  • 4. Get the fundamentals right with three simple overviews- Accounting basics- Entrepreneurs / projects (financial plan)Where to look to find the main information- Balance sheet - Profit & Loss statementCash crunch risk, grow or survive?- Cash flows & funding in times of crisis 24/04/2012 Xavier Corman | Martin van Wunnik 4
  • 5. Get the fundamentals right with three simple overviews- Accounting basics 24/04/2012 Xavier Corman | Martin van Wunnik 5
  • 6. Product & Service level 1.000 EUR 21% VAT(quarterly or monthly refund request/compensation) Investments Cash out: 1.210 EUR Cash in: 210 EUR (>3m) Profit impact: 200 EUR over 5y Cost Cash out: 1.210 EUR Cash in: 210 EUR (>3m) Profit impact: 1.000 EUR Discounted Cash Flows Finance & Accounting level 24/04/2012 Xavier Corman | Martin van Wunnik 6
  • 7. Accounting: Balance Sheet ACTIVE PASSIVE Equity (Capital/Kapitaal) Non Current Assets (Actifs Immobilisés/ Vast Activa) LT Debts Current Assets (Actifs circulants/ Vlottend Activa) ST Debts24/04/2012 Xavier Corman | Martin van Wunnik 7
  • 8. Profit & Loss statements (P&L) COGS (Cost of Sales) General Expenditures Personnel Costs Revenues (Sales…) Depreciation Financial cost Taxes Profit24/04/2012 Xavier Corman | Martin van Wunnik 8
  • 9. Show me the money! Revenues (Sales…) COGS (Cost of Sales) General ExpendituresCharges Personnel Costs Financial cost Taxes Depreciation CASH CASH-FLOW IF NEGATIVE DRAIN Profit24/04/2012 Xavier Corman | Martin van Wunnik 9
  • 10. Get the fundamentals right with three simple overviews- Entrepreneurs / projects (financial plan) 24/04/2012 Xavier Corman | Martin van Wunnik 10
  • 11. http://www.monstarterkit.be/bzplan.cfm24/04/2012 Xavier Corman | Martin van Wunnik 11
  • 12. 24/04/2012 Xavier Corman | Martin van Wunnik 12
  • 13. Content Financial Plan – Assumptions – Profit & Loss – Balance Sheet / Investment – Cash-Flow -> Cash needed – Valuation of the project – Profitability / return of the project Don’t waste your time in developing a huge financial plan before being sure that your project is viable !24/04/2012 Xavier Corman | Martin van Wunnik 13
  • 14. Financial Plan in 10 min /questions What are your revenues ? What are your costs ? What are your investments ? How many persons for your project ?24/04/2012 Xavier Corman | Martin van Wunnik 14
  • 15. • 3 to 5 years• Monthly or Quarterly base• Excel or Calc is your friend• Start by listing your main assumptions24/04/2012 Xavier Corman | Martin van Wunnik 15
  • 16. 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…24/04/2012 Xavier Corman | Martin van Wunnik 16
  • 17. Tips for assumptions• 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 : Realistic different ‘hats’24/04/2012 Xavier Corman | Martin van Wunnik 17
  • 18. Where to look to find the main information- Balance sheet - Profit & Loss statement 24/04/2012 Xavier Corman | Martin van Wunnik 18
  • 19. www.nbb.be “On-line consultation of annual accounts”www.data.be Yearly publication 2 years Short or Long version Public! 24/04/2012 Xavier Corman | Martin van Wunnik 19
  • 20. 24/04/2012 Xavier Corman | Martin van Wunnik 20
  • 21. 24/04/2012 Xavier Corman | Martin van Wunnik 21
  • 22. 24/04/2012 Xavier Corman | Martin van Wunnik 22
  • 23. GROSS MARGIN – GENERAL EXPENDITURES PERSONNEL COSTS DEPRECIATION FIN. REVENUES FINANCIAL COSTS LOSS24/04/2012 Xavier Corman | Martin van Wunnik 23
  • 24. Cash crunch risk, grow or survive?- Cash flows & funding in times of crisis 24/04/2012 Xavier Corman | Martin van Wunnik 24
  • 25. CASH 24/04/2012 Xavier Corman | Martin van Wunnik 25
  • 26. Required Cash-Flow24/04/2012 Xavier Corman | Martin van Wunnik 26
  • 27. How to finance your start-up ?24/04/2012 Xavier Corman | Martin van Wunnik 27
  • 28. Next Workshops ICAB (Brussels)Registration through www.westartup.eu (50 EUR VAT incl.) 24/04/2012 Xavier Corman | Martin van Wunnik 28
  • 29. This presentation is available for free: www.slideshare/FinanceCoach24.com www.slideshare.net/xaviercorman Group: www.meetup.com/Finance-for-Startups24/04/2012 Xavier Corman | Martin van Wunnik 29