Vietnam CIC bootcamp 2014 session 3 covering financial modelling

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Training:
Financial Planning
TRÌNH BÀY: LÊ CHÍ THÀNH
Contents
A. Financial planning
B. Identifying financial needs
C. Developing the cash flow model
A. Financial Planning
• Planning out revenue, costs, profit
• Planning costs
• Identifying your capital needs
• Planning your cash flow
Financial planning includes:

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A. Financial planning
• Determining what kind of volume you will sell?
̶ What is the scale or volume, that other companies/industry,
of products sold in 1 day / month / year?
̶ Estimated annual production
• How do I set my price?
̶ What is the price of the same products? Or similar
products?
̶ How will you market the product?
Financial planning:
A. Financial planning
• Assessing revenue:
̶ How do you track revenue? Every day? Every week?
Monthly? Every quarter?
̶ Not achieving revenue targets? Why?
Revenue planning:
A. Financial planning
• Estimating production costs:
̶ Cost of raw materials
̶ Labor costs
̶ Capital costs - machinery (not paid out in cash
each month)
• Estimating operating costs
̶ Sales, advertising and marketing. Costs
̶ Management and on-going services costs (
electricity , water , telephone , office rent )
Planning costs:

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A. Financial planning
• How do you control costs?
̶ Estimate price volatility
̶ Estimated production allowed losses
̶ Estimated working capital ( inventory of goods)
̶ Plan for your marketing activities in the different
phases of the business
Planning costs:
A. Financial planning
• Ways to determine your breakeven point:
Profit / loss accumulated = 0
• What impacts the breakeven point ::
̶ Capital costs (investment in machinery)
̶ Production output
̶ Price
̶ Operating expenses
• Question: Is it it true that if you want to reach breakeven
point then you should increase production or not?
Determining your breakeven point:
B. Identifying capital needs
• Funds in each phase:
̶ Phase begins : Equity ( % ) , which receives
funding from the POC ( % )
̶ Growth phase : Debt additional equity
• Identify capital needs:
̶ Value of machinery and equipment needed
(including tax and shipping )
̶ Production cost and minimum monthly activities
planned for 6 (*) months
Capital includes current capital and debt:

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B. Identifying capital needs
• Shall I seek debt to support the business or not?:
̶ Development loans
̶ Loans from a private fund (which is what? Lose
anything?)
Capital includes current capital and debt:
C. Developing cash flow
• The direct method (Model 1):
• The indirect method (Model 2):
How to plan cash flow:
C. Developing cash flow
• Cash in: cash collection
• Cash out: cash payments
Cash flow - direct:

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C. Developing cash flow
• Profit after tax:
• Adjustment of non-cash revenue
• Adjustment of non-cash expenses
• Payments for investments and working capital
• Additional capital and loans
Cash flow: indirect:
Chúng tôi hy vọng buổi tập huấn đã trả lời được những thắc mắc và nhờ
đó các bạn có thêm thông tin về Trung Tâm Sáng Tạo Khí Hậu và chương
trình Bootcamp sắp tới.
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