Part of the MaRS Entrepreneurship 101 series
http://www.marsdd.com/ent101
Building a succesful business is about more than simply running a research project. This coming Tuesday's speaker, Ms. Kerri Golden (a chartered accountant and Venture Capitalist), will talk about building realistic budgets for running a start up company - budgets that help you not only identify where you will spend money, but where you will make money!
Speaker: Kerry Golden, Managing Partner at Primaxis Technology Ventures
This is available as an audio presentation at:
http://blog.marsdd.com/2007/03/07/entrepreneurship-101-competitive-intelligence-getting-the-information-you-need-for-your-financial-plan/
Operational rhythm is a core part of business operations, create an effective operational plan with our content ready Operating Rhythm Powerpoint Presentation Slides. Showcase ways to optimize operating rhythm using this professionally designed operational management PPT visuals. Utilize execution rhythm powerpoint templates to ensure a smooth flow of operations between different departments. The inter-department operational plan PowerPoint complete deck contains twenty creative and professional-looking slides. You’ll find all the PPT slides fully customizable and easy to edit. You can enter text in the placeholders, change color if you wish to. Establish your rhythm of business to create a high performing culture. Our topic-specific business rhythm and management process presentation deck helps you to identify business needs. Every business department or division should have clear and optimize execution rhythm. Download the operating mechanism PPT visuals to define review and feedback mechanisms. Erase any doubts about the job with our Operating Rhythm Powerpoint Presentation Slides. Be able to issue clear cut instructions.
As product managers and product owners, we make a myriad of decisions—from shaping the product strategy to deciding the detailed functionality of our products. But do we make all these decisions effectively? And do we always secure the necessary buy-in? This slide deck wants to helps you make better decisions. It discusses five common decision rules and explains when to apply them.
Talent Acquisition: Case Study PresentationsWorkforceNEXT
Presented by Dora Rodriguez - Manager Corporate Recruiting at Enterprise Products Partners, Kristy Sidlar - Executive Director Human Capital Solutions at Allegis Global Solutions.
Operational rhythm is a core part of business operations, create an effective operational plan with our content ready Operating Rhythm Powerpoint Presentation Slides. Showcase ways to optimize operating rhythm using this professionally designed operational management PPT visuals. Utilize execution rhythm powerpoint templates to ensure a smooth flow of operations between different departments. The inter-department operational plan PowerPoint complete deck contains twenty creative and professional-looking slides. You’ll find all the PPT slides fully customizable and easy to edit. You can enter text in the placeholders, change color if you wish to. Establish your rhythm of business to create a high performing culture. Our topic-specific business rhythm and management process presentation deck helps you to identify business needs. Every business department or division should have clear and optimize execution rhythm. Download the operating mechanism PPT visuals to define review and feedback mechanisms. Erase any doubts about the job with our Operating Rhythm Powerpoint Presentation Slides. Be able to issue clear cut instructions.
As product managers and product owners, we make a myriad of decisions—from shaping the product strategy to deciding the detailed functionality of our products. But do we make all these decisions effectively? And do we always secure the necessary buy-in? This slide deck wants to helps you make better decisions. It discusses five common decision rules and explains when to apply them.
Talent Acquisition: Case Study PresentationsWorkforceNEXT
Presented by Dora Rodriguez - Manager Corporate Recruiting at Enterprise Products Partners, Kristy Sidlar - Executive Director Human Capital Solutions at Allegis Global Solutions.
SWOT is the acronym for “STRENGTH WEAKNESS OPPORTUNITY THREAT” which outlines the current position of any organisation.
It identifies that whether a company is in a good or bad market position.
SWOT has mainly two steps:
Identifying internal and external factors of the organisation.
Formulating strategies to exploit the opportunities & defending the threats with the help of internal strengths.
A SWOT Analysis is a strategic planning tool that involves the listing a companies Strength , Weaknesses, Opportunities and Threats.
It evaluate the business environment in a detail manner so as to take strategic decisions for the future course of action.
SWOT analysis provides a visual overview that prompts discussion around a company’s situation. It is a bird's-eye view meant to flesh out the viability of a concept or strategy from the inside out.
How to Identify Relevant Product KPIs by Roomgo Head of ProductProduct School
Main takeaways:
- Identifying fit-for-purpose KPIs: what to measure and why, the common mistakes that Product Managers makeand when to start measuring KPIs in a project
- Avoiding analysis rabbit holes: going too granular & orphaned KPIs, testing in a bubble and application ins A/B testing + Root Cause analysis
-Telling engaging stories through product data: the power of product KPIs, building business buy-in through relevant KPIs and how less can be more when sharing with the wider business
Delivered to MBA students at Imperial College London. This session covered what Lean Product Development and Management entails, whilst covering the facets of lean including Agile, Lean Startup, Customer Development and more.
Strategic Workforce Planning PowerPoint Presentation Slides is a comprehensive solution for HR professionals to showcase talent management plans. This human resource strategy PPT theme touches key aspects like employee training, motivation, performance management, career planning, and employee engagement. The manpower management PowerPoint slideshow helps you to demonstrate talent management methodology. Highlight recruitment sources, process, and how to track recruitment activities by the means of this workforce management PPT template. Elucidating the hiring plan by department becomes easy using tabular formats of employee planning PowerPoint theme. Illustrate performance planning guidelines, performance coaching, and feedback through this staff management PPT slideshow and present types of goals and priorities. Showcase action plan for employee motivation in a concise tabular layout included in this personnel management PowerPoint template. So, download this HR planning PPT deck to demonstrate the fundamentals of strategic workforce planning. https://bit.ly/3dS7qkA
Boost Your SEO: How To Identify & Eliminate Keyword CannibalizationSearch Engine Journal
Wondering why you don't seem to be ranking highly for keywords that you're definitely targeting?
Want to know what content cannibalization could be costing you and how you can combat it effectively?
During this webinar, search experts Jon Earnshaw and Sophie Moule will guide you through the different types of conflicting content and how to remedy them.
You’ll learn:
- How to identify the different types of cannibalization.
- How to fix the issues caused by conflicting content.
- How to report effectively on the issues and progress cannibalization causes.
Watch this webinar for an insightful session with Pi Datametrics and get the content optimization tips you need to increase your search rankings and keep your site in good standing.
How to Use Competitive Analysis and Strategy by YouTube PMProduct School
In the presentation, Joao Fiadeiro, discusses:
-What the key elements of strategy are: from the competitive landscape and growth strategy to business model
-How to identify the competitive landscape for a sector/industry using all the resources at our disposal; estimating a products revenue and usage
-The fundamentals of strategic thinking and how it should inform a product roadmap
Which Innovation Framework do you use, the 10 types of innovation or the busi...Heather McQuaid
Which innovation framework, the 10 types of innovation or the business model canvas, is more useful in helping people realise that 'innovation' isn't just about a product (or service)? I was surprised that no one had published (or at least made freely available) a comparison of the 10 types of innovation and the 9 building blocks of the business model canvas. So I attempted a mapping and here's what I found.
The Presentation is about :
- Google Inc
- China Inc
What happened to Google in China story?
This Presentation is done as a part of MBA class assessment in 2010.
15 interesting dissertation topics on employee motivationChormvirak Moulsem
This bachelor thesis is focused on the relationship between intrinsic and extrinsic motivation and
employee performance. The thesis is a literature research and thus a review by the work of others.
In earlier research on this topic conducted by Vroom (1964) was concluded that a positive
correlation between motivation and performance did not exist. However, later research proved
that it is indeed possible to motivate employees intrinsically and extrinsically to perform well. It
appears that when the organisation provides certain job characteristics, employees can be
motivated to perform well in the organisation. And it also appeared that intrinsic factors have
more effect on the relationship than extrinsic factors.
SWOT is the acronym for “STRENGTH WEAKNESS OPPORTUNITY THREAT” which outlines the current position of any organisation.
It identifies that whether a company is in a good or bad market position.
SWOT has mainly two steps:
Identifying internal and external factors of the organisation.
Formulating strategies to exploit the opportunities & defending the threats with the help of internal strengths.
A SWOT Analysis is a strategic planning tool that involves the listing a companies Strength , Weaknesses, Opportunities and Threats.
It evaluate the business environment in a detail manner so as to take strategic decisions for the future course of action.
SWOT analysis provides a visual overview that prompts discussion around a company’s situation. It is a bird's-eye view meant to flesh out the viability of a concept or strategy from the inside out.
How to Identify Relevant Product KPIs by Roomgo Head of ProductProduct School
Main takeaways:
- Identifying fit-for-purpose KPIs: what to measure and why, the common mistakes that Product Managers makeand when to start measuring KPIs in a project
- Avoiding analysis rabbit holes: going too granular & orphaned KPIs, testing in a bubble and application ins A/B testing + Root Cause analysis
-Telling engaging stories through product data: the power of product KPIs, building business buy-in through relevant KPIs and how less can be more when sharing with the wider business
Delivered to MBA students at Imperial College London. This session covered what Lean Product Development and Management entails, whilst covering the facets of lean including Agile, Lean Startup, Customer Development and more.
Strategic Workforce Planning PowerPoint Presentation Slides is a comprehensive solution for HR professionals to showcase talent management plans. This human resource strategy PPT theme touches key aspects like employee training, motivation, performance management, career planning, and employee engagement. The manpower management PowerPoint slideshow helps you to demonstrate talent management methodology. Highlight recruitment sources, process, and how to track recruitment activities by the means of this workforce management PPT template. Elucidating the hiring plan by department becomes easy using tabular formats of employee planning PowerPoint theme. Illustrate performance planning guidelines, performance coaching, and feedback through this staff management PPT slideshow and present types of goals and priorities. Showcase action plan for employee motivation in a concise tabular layout included in this personnel management PowerPoint template. So, download this HR planning PPT deck to demonstrate the fundamentals of strategic workforce planning. https://bit.ly/3dS7qkA
Boost Your SEO: How To Identify & Eliminate Keyword CannibalizationSearch Engine Journal
Wondering why you don't seem to be ranking highly for keywords that you're definitely targeting?
Want to know what content cannibalization could be costing you and how you can combat it effectively?
During this webinar, search experts Jon Earnshaw and Sophie Moule will guide you through the different types of conflicting content and how to remedy them.
You’ll learn:
- How to identify the different types of cannibalization.
- How to fix the issues caused by conflicting content.
- How to report effectively on the issues and progress cannibalization causes.
Watch this webinar for an insightful session with Pi Datametrics and get the content optimization tips you need to increase your search rankings and keep your site in good standing.
How to Use Competitive Analysis and Strategy by YouTube PMProduct School
In the presentation, Joao Fiadeiro, discusses:
-What the key elements of strategy are: from the competitive landscape and growth strategy to business model
-How to identify the competitive landscape for a sector/industry using all the resources at our disposal; estimating a products revenue and usage
-The fundamentals of strategic thinking and how it should inform a product roadmap
Which Innovation Framework do you use, the 10 types of innovation or the busi...Heather McQuaid
Which innovation framework, the 10 types of innovation or the business model canvas, is more useful in helping people realise that 'innovation' isn't just about a product (or service)? I was surprised that no one had published (or at least made freely available) a comparison of the 10 types of innovation and the 9 building blocks of the business model canvas. So I attempted a mapping and here's what I found.
The Presentation is about :
- Google Inc
- China Inc
What happened to Google in China story?
This Presentation is done as a part of MBA class assessment in 2010.
15 interesting dissertation topics on employee motivationChormvirak Moulsem
This bachelor thesis is focused on the relationship between intrinsic and extrinsic motivation and
employee performance. The thesis is a literature research and thus a review by the work of others.
In earlier research on this topic conducted by Vroom (1964) was concluded that a positive
correlation between motivation and performance did not exist. However, later research proved
that it is indeed possible to motivate employees intrinsically and extrinsically to perform well. It
appears that when the organisation provides certain job characteristics, employees can be
motivated to perform well in the organisation. And it also appeared that intrinsic factors have
more effect on the relationship than extrinsic factors.
Don Tapscott's New Solutions for a Connected Planet - MaRS Global LeadershipMaRS Discovery District
In this new age of networked intelligence, collaborative communities are enhancing and even bypassing crumbling institutions. We are innovating the way our financial institutions and governments operate; how we educate our children; how the healthcare, newspaper, and energy industries serve their customers; how we care for our neighbourhoods; and even how we solve global problems.
From his latest book, (co-author Anthony D. Williams) Macrowikinomics: New Solutions for a Connected Planet, Don Tapscott presents groundbreaking innovations from every corner of the globe: how businesses, organizations and individuals alike are using mass collaboration to revolutionize not only the way we work, but how we live, learn, create and care for each other.
SR&ED: What you need to know about the changing landscape - MaRS Best PracticesMaRS Discovery District
The Scientific Research and Experimental Development (SR&ED) tax incentive program provides support in the form of tax credits to groups or individuals conducting scientific research or experimental development in Canada.
Some significant changes are on the way as a result of the last federal budget. See how these new rules could affect you!
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
1. Fail to Plan: Plan to Fail
Developing a Financial Plan
For your Business
Kerri Golden, CA
Managing Partner
Primaxis Technology Ventures
March 6, 2007
2. Presentation Overview
! Financial Plan: part of your Business Plan
! The Top Line – Sales, Cost of Sales and Margin
! Operating Expenses – R&D, Selling and Admin.
! Balance Sheet - Working Capital and Equipment
! Cash Flow – the most important tool for the
Entrepreneur
! Closing Remarks
2
Fail to Plan: Plan to Fail – March 2007
3. The Business Plan ~ 30 pages
! Executive Summary
! Company and Opportunity Summary
! Product and Technology
! Market Size and Growth
! Sales and Marketing Plan
! Competitive Overview
! Operations Plan
! Management Team
! Financials and Investment Requirements – focus for today
3
Fail to Plan: Plan to Fail – March 2007
4. Before you start your Financial Plan…
! You need an outline of your Business Plan including:
!Product and Technology
• R&D budget for development of technology and initial products
• Specification of products - bill of material and labor cost to build
• Product’s evolution over time - cost reduction projects/estimates
!Market Information, including Competitive Overview
• Sales Unit Targets, Pricing, Sales Team and Partner Compensation
!Sales and Marketing Plan
• Go to Market Plan, Distribution Strategy, Marketing activities
!Operations Plan
• Details of support program, team, equipment required…
4
Fail to Plan: Plan to Fail – March 2007
5. Income Statement – the Top Lines
Year One Year Two Year Three
Sales $0 $1.4M $5.7M
Cost of Sales $0 $0.3M $1.1M
Gross Margin $0 $1.1M $4.6M
R&D Expenses $1.5M $2.3M $3.0M
Selling Expenses $0.7M $2.2M $3.7M
Admin Expenses $0.6M $1.2M $1.5M
EBITDA ($2.8M) ($4.6M) ($3.6M)
ITDA* $200K $300K $400K
Net (Loss) Income ($3.0M) ($4.9M) ($4.0M)
*ITDA = Interest, Taxes, Depreciation and Amortization
5
Fail to Plan: Plan to Fail – March 2007
6. Translating Market Share to Sales?
Target 1% of the projected $3 billion market by year five, work
backward to earlier year sales projections
Year five projected sales = $30 million
My Company
Tip:
It can be better to segment the
market and show your market
share in relation to segment –
investors like to back companies All Competitors
who will be significant players in
their market segment
6
Fail to Plan: Plan to Fail – March 2007
7. Sales Forecast – bottom up more credible!
! Distribution Channel = Doctors
! Recruit Doctors as follows:
! 150 in year one through trade shows (60 signed up already)
! 2,400 doctors by year five of the plan, serving up to 30,000
patients
! Product pricing:
! Annual patient revenues of $1,000 per year
! Pricing starts at $1,200 per year, competition drives average
price down 20% over period of the plan
! Require 6 regional sales and support reps to
support Doctor Network
7
Fail to Plan: Plan to Fail – March 2007
8. Other Sales Forecast Considerations
! Mixed Distribution Model may result in multiple selling
prices for products
! End User Selling Price for product sold directly to customers
! Wholesale Price for sales distribution partners
! Currency
! Most Canadian companies sell their products in US and other markets
– Develop pricing strategies for individual markets, validate and state
assumptions in your plan
! Service Revenues
! Dependent on salary/consulting rates which generally increase over
time
8
Fail to Plan: Plan to Fail – March 2007
9. Always ask: Is Your Plan Realistic?
9
Fail to Plan: Plan to Fail – March 2007
10. Cost of Sales and Gross Margin
! The direct costs of producing your product
! Bill of Material, Labor, Warehousing, Shipping…for products
! Service Team Labor and Material Costs
! Costs will evolve over time
! Production volume will impact unit cost
! Labor costs will generally increase, although they often drop as a
percentage of costs over time
! Planning for cost reductions – it is common for technology companies
to get version of product to market & then re-engineer it for lowest cost
! Gross Margin
! Expressed in dollars and often a percentage – you should understand
margin targets for your industry/sector (Software – 80-90%, Product
Companies – 45-60%)
10
Fail to Plan: Plan to Fail – March 2007
11. Expense Projections - Income Statement
Year One Year Two Year Three
Sales $0 $1.4M $5.7M
Cost of Sales $0 $0.3M $1.1M
Gross Margin $0 $1.1M $4.6M
R&D Expenses $1.5M $2.3M $3.0M
Selling Expenses $0.7M $2.2M $3.7M
Admin Expenses $0.6M $1.2M $1.5M
EBITDA ($2.8M) ($4.6M) ($3.6M)
ITDA* $200K $300K $400K
Net (Loss) Income ($3.0M) ($4.9M) ($4.0M)
*ITDA = Interest, Taxes, Depreciation and Amortization
11
Fail to Plan: Plan to Fail – March 2007
12. R&D expenses may be your comfort zone
! Teams generally comfortable forecasting these costs
! Largest component is labor costs for the team - should
consider evolution of team over time from research to
product design/development, testing and QA
! Must address sustaining work on product line, field
support for customers and future product cost reductions
! Costs of patenting/protecting trade secrets
! Any licensing costs to use other’s technologies
! Consider tax credits and grants that can help stretch
your R&D budget
12
Fail to Plan: Plan to Fail – March 2007
13. But selling expenses often drive growth!
Newbridge – sales results for the early years
! 1987 - $1.3M
! 1988 - $17.6M
! 1989 - $67.4M
! 1990 - $121.2M
! 1991 - $149.1M
! 1992 - $181.M
! 1993 - $307.6M
Newbridge spent 50%+ on selling and only 33% on
R&D to generate spectacular sales growth
13
Fail to Plan: Plan to Fail – March 2007
14. What’s in Selling Expenses?
! Labor costs for sales and marketing team members –
usually a team that is geographically remote
! Commissions – how does your plan compare with
industry to enable recruiting top resources?
! Marketing Costs – Public Relations, Advertising, Trade
Shows, Website, Lead Generation, Case Studies,
Customer Documentation, Partner recruiting costs
! Travel, Living and Entertainment – strategy to ensure
customer coverage and policy to control costs
! Performance measures to ensure the costs of pursuing
customers are matched with margin on sales
14
Fail to Plan: Plan to Fail – March 2007
15. What’s in Admin Expenses?
! Labor costs for operations, customer support, finance,
HR, IT and admin teams, including CEO
! Rent and related costs (telephone, internet, supplies…)
associated with running the office and operation
! Recruiting and other HR costs – may be significant as
team is ramped up
! Professional Fees including legal, audit, tax, insurance
! Board/Investor Relations costs
! Travel expenses for CEO/CFO
! Misc. Costs – bank charges, courier, postage
15
Fail to Plan: Plan to Fail – March 2007
16. The Business Case Tool
Year One Year Two Year Three
Incremental $0 $2,000K $6,000K
Revenue
Incr. Margin $0 $1,000K $3,000K
R&D Costs $1,000K $300K $200K
Selling Costs $150K $500K $1,200K
G&A Costs $100K $200K $300K
Total Costs $1,250K $1,000K $1,700
Total Margin ($1,250K) $0 $1,300
Business case discipline should be added to ensure that future
development projects contribute to financial success.
16
Fail to Plan: Plan to Fail – March 2007
17. The Balance Sheet – an example
Year One Year Two Year Three
Cash $17K $4,738K $898K
Accounts Rec. $176K $929K $1,371K
Inventory/Prepaid $223K $190K $328K
Fixed Assets $203K $304K $343K
Total Assets $619K $6,101K $2,939K
AP & Liabilities $429K $1,020K $1,786K
Financing* $3,227K $13,008K $13,324K
Ret. (Loss) Income ($3,037K) ($8,006K) ($12,170K)
Total Liab/Equity $619K $6,101K $2,939K
*Financing could be Debt, Equity or combination thereof
17
Fail to Plan: Plan to Fail – March 2007
18. Asset increase = use of cash
! Accounts Receivable (A/R)
! Amounts owing from customers, partners, tax credit, grant program,
GST input tax credits – assumptions regarding terms/collection
! As business grows, company may require cash or alternative financing
to fund A/R growth (e.g. customers pay 60 days after delivery)
! Inventory and Prepaid Expenses
! For product business, inventory build plan and management are critical
! Need product on hand to ensure sales targets can be met
! Some expenses (insurance, trade shows, rent) may be paid in advance
! Fixed Assets
! Equipment to be used in the business, expensed over longer-term
! Some businesses can be very capital-intensive
18
Fail to Plan: Plan to Fail – March 2007
19. Liability/Equity increase = source of cash
! Accounts Payable and Liabilities (A/P)
! Need to reflect terms with suppliers, should be negotiated based on your
business cycle to minimize cash flow impact
! Other liabilities can include: Leases, Sales Tax Payable
! Debt Financing
! Small Business Loan for equipment
! Venture Debt, may be available along with equity funding
! Operating Line of Credit – usually secured against Accounts Receivable
and maybe Inventory assets
! Long-term Equipment Loan – may be available for capital-intensive
business
! Equity Financing
! Proceeds from sale of either common or preferred shares
19
Fail to Plan: Plan to Fail – March 2007
20. Cash Flow Statement – key tool
! Often regarded as something accountant prepares for
monthly/quarterly/annual financial statements
! Should be used as a weekly or daily planning tool to
manage your business
! Opening Cash Balance
! + Cash Receipts from customers/other Receivable
! - Payroll Costs
! - Cash Payments to suppliers for Expenses/Inventory/Fixed Assets
! + Cash received from lenders or equity financing
! - Cash Payments, including interest for repayment of debt
! = Closing Cash Balance
! Understanding & managing cash flow is key to success
20
Fail to Plan: Plan to Fail – March 2007
21. Some Final Thoughts
! Your business plan is quantified in your financial plan
! The assumptions/content must be consistent between the two plans
! The key aspects of the business plan need to be researched and
thought through before starting the financial plan
! Your financial plan can be a work in progress
! Not all elements of the plan need to be finalized before seeking funding
! Be honest about where there is higher degree of confidence in the plan
and where more work is required to complete
! Monitoring your business’ progress against your financial
plan is as important as developing the plan
! “Cash is king” in start-ups and the balance should be
monitored on a regular basis (daily or weekly)
21
Fail to Plan: Plan to Fail – March 2007