Once we create a business model canvas for our business idea, how do we proceed in making a financial plan? How do we assess if it's in principle financially feasible? How do we create income statements, cash flows and do break-even analysis. This workshop was aimed to bridge the gap between BMC and financial plan aimed to aid entrepreneurs struggling with financial statements. If you found this helpful or have suggestions I would love to read it in the comments section.

1. Emad Saif
Entrepreneurship Educator

3. • Income Statement
• Cash Flow
• Breakeven Analysis

5. ASPIRE Lemonade Stand:
Refreshing Lemonade

6. VALUE
PROPOSITION
CHANNELS
RELATIONSHIPS CUSTOMER
SEGMENT
REVENUE STREAMSCOST STRUCTURE
KEY
PARTNERS
KEY
RESOURCES
KEY
ACTIVITIES
ASPIRE Lemonade Stand Business Model Canvas
6

7. VALUE
PROPOSITION
CHANNELS
RELATIONSHIPS CUSTOMER
SEGMENT
REVENUE STREAMSCOST STRUCTURE
KEY
PARTNERS
KEY
RESOURCES
KEY
ACTIVITIES
7
RevenuesCosts <

8. VALUE
PROPOSITION
CHANNELS
RELATIONSHIPS CUSTOMER
SEGMENT
REVENUE STREAMSCOST STRUCTURE
KEY
PARTNERS
KEY
RESOURCES
KEY
ACTIVITIES
8
Operational Costs
CAPEX Cost
CAPEX: Capital expenditures, investment

9. VALUE
PROPOSITION
CHANNELS
RELATIONSHIPS CUSTOMER
SEGMENT
REVENUE STREAMSCOST STRUCTURE
KEY
PARTNERS
KEY
RESOURCES
KEY
ACTIVITIES
9
Variable Costs
Fixed Costs
Fixed Costs: stay the same regardless of output (i.e. rent, insurance,
marketing, labor)
Variable Costs: changes as level of output changes
Total Operational Costs = Fixed costs + Variable Costs

10. How do we come up with the cost to
make one lemonade cup?
What costs do we include?

11. Lemonade Quantity Cost (QR) /
Jug
Cost (QR) / Cup
Lemon 4 lemons 8 0.8
Sugar 10 spoons 3 0.3
Ice 40 cubes 2 0.2
Water 3 L 2 0.2
Cup 10 cups 3 0.3
Straws 10 straws 2 0.2
Total Cost 20 QR 2 QR
= 10x

12. VALUE
PROPOSITION
CHANNELS
RELATIONSHIPS CUSTOMER
SEGMENT
REVENUE STREAMSCOST STRUCTURE
KEY
PARTNERS
KEY
RESOURCES
KEY
ACTIVITIES
12
2 QR/cup

13. One Time Costs Cost (QR)
Icebox 500
Spoons 50
Knives 50
Lemon Juicer 50
Lemon jug 50
Lemon stand 500
Other 50
Total 1,250

14. VALUE
PROPOSITION
CHANNELS
RELATIONSHIPS CUSTOMER
SEGMENT
REVENUE STREAMSCOST STRUCTURE
KEY
PARTNERS
KEY
RESOURCES
KEY
ACTIVITIES
14
2 QR/cup
1,250 QR
CAPEX
cost

15. SALARIES
Employees Cost (QR) / month Cost (QR) / year
Sales person 1 4,000 48,000
Sales Person 2 4,000 48,000
Total 8,000 96,000
RENT
Rent Cost (QR) / month Cost (QR) / year
Amount 2,000 24,000
MISC.
Misc. Cost (QR) / month Cost (QR) / year
Misc. Costs 500 6,000
MARKETING
Marketing Cost (QR) / month Cost (QR) / year
Flyers 1,500 18,000
Online/SM 500 6,000
Total 2,000 24,000
Total Fixed Costs (QR) 150,000

16. VALUE
PROPOSITION
CHANNELS
RELATIONSHIPS CUSTOMER
SEGMENT
REVENUE STREAMSCOST STRUCTURE
KEY
PARTNERS
KEY
RESOURCES
KEY
ACTIVITIES
16
2 QR/cup
1,250 QR
CAPEX
cost
2,000
QR/month
2x sales people
8,000 QR/month
2,000
QR/month

17. 1. How can we come up with
the sale price of 1 lemonade
cup?
2. How can we come up with
# of buying customers?

18. VALUE
PROPOSITION
CHANNELS
RELATIONSHIPS CUSTOMER
SEGMENT
REVENUE STREAMSCOST STRUCTURE
KEY
PARTNERS
KEY
RESOURCES
KEY
ACTIVITIES
18
Sales Revenues
Lemonade Sales
(Cup Price) x # customers
Tips
(% of sales)
A
d
s
Ads
(% of sales)
Assume 10 QR/cup Assume 5% Assume 3%

19. Assume Assume (B x C) D x 4 E x 2QR F x 12 E x 10QR K x 12
A B C D E F J K L
Day Visitors %
Buying
Customers/
cups sold
Cups
Sold/month
Cost/month Cost/year Sales/month Sales/Year
Sunday 150 15% 23 90 180 2,160 900 10,800
Monday 150 15% 23 90 180 2,160 900 10,800
Tuesday 150 15% 23 90 180 2,160 900 10,800
Wednesday 150 15% 23 90 180 2,160 900 10,800
Thursday 1,000 15% 150 600 1,200 14,400 6,000 72,000
Friday 1,500 15% 225 900 1,800 21,600 9,000 108,000
Saturday 800 15% 120 480 960 11,520 4,800 57,600
Total 3,900 585 2,340 4,680 56,160 23,400 280,800
Yearly Lemonade Sales & Costs

20. Income Statement (2015)
Sales Revenue 303,264
Sales 280,800
Tips (5% of sales) 14,040
Ads (3% of sales) 8,424
COGS 176,160
Cups Costs 56,160
Salaries 96,000
Rent 24,000
Gross Margin 127,104
Profit Margin 42%
Other Expenses 30,000
Marketing 24,000
Misc. 6,000
Net Income 97,104
NI/Sales % 32%
Costs of goods & services
in a year
Sales of lemonade cups
sold in a year
Profit at end of year
Net Income / Sales Revenue x 100%
Non-Operational Costs
Sales Revenue - COGS
Gross Margin / Sales revenue x 100%

21. Operating
Cash Flow
• (i.e. cash from
COGS, salaries,
marketing, etc.)
Investing
Cash Flow
• (i.e. equipment,
assets)
Financing
Cash Flow
• (i.e. loans)
How companies spend and receive cash …

22. Cash Flow in (QAR) YEAR 1
Time Period M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Y1
Cash from Operations
Sales Revenue 25,272 25,272 25,272 25,272 25,272 25,272 25,272 25,272 25,272 25,272 25,272 25,272 303,264
Cups costs (4,680) (4,680) (4,680) (4,680) (4,680) (4,680) (4,680) (4,680) (4,680) (4,680) (4,680) (4,680) (56,160)
Salaries (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (96,000)
Rent (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (24,000)
Marketing (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (24,000)
Insurance - - - - - - - - - - - - -
Misc. (500) (500) (500) (500) (500) (500) (500) (500) (500) (500) (500) (500) (6,000)
Taxes (0%) - - - - - - - - - - - - -
Subtotal Cash from Operations 8,092 8,092 8,092 8,092 8,092 8,092 8,092 8,092 8,092 8,092 8,092 8,092 97,104
Cash from Investment
Equipment (1,250) - - - - - - - - - - - (1,250)
Subtotal Cash from Investment (1,250) - - - - - - - - - - - (1,250)
Cash from Finance
Investors - - - - - - - - - - - - -
Founders 1,500 - - - - - - - - - - - 1,500
Bank Loan - - - - - - - - - - - - -
Interest - - - - - - - - - - - - -
Subtotal Cash from Finance 1,500 - - - - - - - - - - - 1,500
Net change in cash 8,342 8,092 8,092 8,092 8,092 8,092 8,092 8,092 8,092 8,092 8,092 8,092 97,354
Cash at beginning of period - 8,342 16,434 24,526 32,618 40,710 48,802 56,894 64,986 73,078 81,170 89,262 -
Net Cash Flow 8,342 16,434 24,526 32,618 40,710 48,802 56,894 64,986 73,078 81,170 89,262 97,354 97,354

23. -
20,000
40,000
60,000
80,000
100,000
120,000
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
Net change in cash
Net Cash Flow

24. Fixed Costs: stay the
same regardless of
output (i.e. rent,
insurance, marketing,
labor)
Variable Costs: changes
as level of output
changes
Total Costs = Fixed costs
+ Variable Costs
Q: How do we reduce
break-even level?
Profit = ZERO
B = (Fixed Costs) / (Price – Variable)

25. Price: 10 QR/cup Variable Cost: 2 QR Fixed Cost: 150,000 QR
B = (Fixed Costs) / (Price – Variable)
B = (150,000) / (10 – 2)
=18,750 Lemonade Cups
18,750
187,500 QR
ProfitLoss

26. •
•
•
•

28. THANK
YOU!Emad Saif
Center for
Entrepreneurship
QATAR UNIVERSITY
emadsaif@qu.edu.qa