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SAMPLECOFinancial and Operating PlanFRAMEWORKS AND ANALYSES ARE PRODUCED ON A CASE BY CASEBASIS AND AND ARE TAILORED TO TH...
RISK ANALYSIS
IDENTIFICATION OF TIME TO CASH FLOW POSITIVITY WITH AND WITHOUT FUNDING;
CASH FOR SURVIVAL
OPERATING PLAN FOR GROWTH ; IDENTIFICATION OF KEY OPERATING LEVERS
DETAILED COST OF SCALING ANALYSIS
SALARY/EMPLOYEE ADDITION SCHEDULE FOR GROWTH
INDUSTRY OVERVIEW/COMPARABLE ANALYSIS TO SENSE CHECK MARGIN AND GROWTH PROJECTIONS</li></li></ul><li>SAMPLECO`s Investment...
Internet Marketing will grow as companies seek to reach consumers online. SAMPLECO needs to capture only 0.2% of the proje...
Comparable Companies are high margin, high growth businesses. SAMPLECO expects gross margins at x% in year five and revenu...
The long term nature of SAMPLECO`s service deliverynecessitatesthat SAMPLECO payoverheadcosts up front.  This is the centr...
SAMPLECO and has a detailed account of all critical costs to scale the business<br />New Hire Onboarding – Costs of <br />...
SAMPLECO will achieve first class performance by strategically investing capital in sales  and delivery - the areas most c...
SAMPLECO will achieve first class performance by strategically investing capital in sales  and delivery - the areas most c...
Exit Value <br />Including overhead costs, travel expenses, equipment purchases and training,<br />SAMPLECO estimates an o...
SAMPLECO seeksadditional capital as a liquidity cushion in year 1.  SAMPLECO will raise debt capital in the amount of $ABC...
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Sampleco Presentation

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Sampleco Presentation

  1. 1. SAMPLECOFinancial and Operating PlanFRAMEWORKS AND ANALYSES ARE PRODUCED ON A CASE BY CASEBASIS AND AND ARE TAILORED TO THE PARTICULAR COMPANYOF INTEREST<br />by NRI Solutions<br />HIGHLIGHTS OF THIS ANALYSIS INCLUDE<br /><ul><li>IDENTIFICATION OF KEY CHALLENGESTO IMMEDIATE OPERATING PROFIT/ POSITIVE CASH FLOW;
  2. 2. RISK ANALYSIS
  3. 3. IDENTIFICATION OF TIME TO CASH FLOW POSITIVITY WITH AND WITHOUT FUNDING;
  4. 4. CASH FOR SURVIVAL
  5. 5. OPERATING PLAN FOR GROWTH ; IDENTIFICATION OF KEY OPERATING LEVERS
  6. 6. DETAILED COST OF SCALING ANALYSIS
  7. 7. SALARY/EMPLOYEE ADDITION SCHEDULE FOR GROWTH
  8. 8. INDUSTRY OVERVIEW/COMPARABLE ANALYSIS TO SENSE CHECK MARGIN AND GROWTH PROJECTIONS</li></li></ul><li>SAMPLECO`s Investment in staff for sales and execution will drive revenue growth and scale in an expanding market with ample opportunity<br />Cost to scale<br />is minimal compared<br />to revenue increase<br />2009<br />2014<br />
  9. 9. Internet Marketing will grow as companies seek to reach consumers online. SAMPLECO needs to capture only 0.2% of the projected NA market to reach revenue targets.<br />Growth can occur at above market<br />rates in unsaturated markets such as Canada<br />Source SEMPO ‘State of the industry report’, 2008<br />
  10. 10. Comparable Companies are high margin, high growth businesses. SAMPLECO expects gross margins at x% in year five and revenues of $y (mm) <br />``Big online ad networks have an average profit margin of 45%, according to Jordan Rohan, a veteran Internet analyst and the founder and managing partner of Clearmeadow Partners -- and some are taking an even larger percentage. `` -Online Media Daily, July 29, 2009<br />318%<br />480%<br />PCMI`s unique relationships with suppliers in India will allow it to outperformTrade Doubler in Gross Margin<br />1000%<br />Source: company filings, 1 http://list.canadianbusiness.com/rankings/profit100/2009 (See Search Engine People)<br />
  11. 11. The long term nature of SAMPLECO`s service deliverynecessitatesthat SAMPLECO payoverheadcosts up front. This is the central reason for SAMPLECO`s need for funding – a challenge easilyturnedinto profit with minimal investment.<br />timeline<br />
  12. 12. SAMPLECO and has a detailed account of all critical costs to scale the business<br />New Hire Onboarding – Costs of <br />Scaling<br />Travel for Sales Outside<br />Local region <br />
  13. 13. SAMPLECO will achieve first class performance by strategically investing capital in sales and delivery - the areas most crucial to driving operations - while maintaining cost discipline. <br />Sales Funnel – Number of <br />potential market contacts per close<br />Sales Funnel - total labour costs<br />Average contract value at Close<br />$AVERAGE<br />Total Cost $TOTAL<br />
  14. 14. SAMPLECO will achieve first class performance by strategically investing capital in sales and delivery - the areas most crucial to driving operations - while maintaining cost discipline. <br />Delivery cost estimate PRODUCT 1 <br />Delivery cost estimate PRODUCT 2<br />Based on contract with <br />average value<br />$AVERAGE<br />Total Cost $TOTAL<br />Total Cost $TOTAL<br />
  15. 15. Exit Value <br />Including overhead costs, travel expenses, equipment purchases and training,<br />SAMPLECO estimates an operating profit margin of X% and EBITDA of $Y (mm)<br />(CAD) in year 5<br />Using EV/EBITDA multiple of 10, SAMPLECO expects an exit value of $YY <br />CAD in year 5<br />Opportunities: SAMPLECO’s strength lies in innovation and cuTting edge product <br />design. Market share will be won from competitors as SAMPLECO is flexible <br />around delivering products to meet client needs. SAMPLECO’s experience in <br />``XYZ`` distinguishes it from other technology start ups in this space..MORE<br />Threats: Pricing pressure in the industry may depress margins as competition<br />increases. <br />
  16. 16. SAMPLECO seeksadditional capital as a liquidity cushion in year 1. SAMPLECO will raise debt capital in the amount of $ABC to be repaid within N years.<br />Credit analysis: SAMPLECO’s sales are projected to grow rapidly within the next <br />N years and there are currently substancial revenue generating contracts in <br />negotiations. SAMPLECO’s need arises from the long term nature of its services. <br />Were the dollar value of each contract available upon signing, SAMPLECO would be<br /> immediately cash flow postive. However, contracts are designed such that customers<br />pay as service is completed. Employee salaries must be carefully balanced against<br />sales collectible in cash during the first six months of the firms operations to cover <br />the upfront cost of the first sales. <br />Risks include cancellation of sales contracts by customers. There is some chance that<br />projected revenues will not materialize and that sales will be unsuccessful.<br />Cancellation events are not likely to overwhelm sales performance, given historical <br />customer fidelity. If the firm must be liquidated before <br />breakeven, then tangible assets will be insufficient to cover $ABC <br />Present tangible assets amount to $X thousand CAD. Existing, transferable client<br /> relationships4 are valued at $Y thousand. Industry expertise and human capitalis<br />valued at $Z thousand, contracts in discussion5 are valued at $A thousand<br />Sources: 3 estimate based on current market rate for experienced professionals in advertising <br />4 estimate based on number of Prairie Choice Marketing legacy relationships and fraction of estimated revenue to be recaptured within the next one to two years<br />5estimate based on current sales contracts in final stages of sales funnel<br />
  17. 17. Appendix – financialresultsgraphicalsummary<br />Profit margins include costs of scaling described in this deck<br />

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