This document summarizes a workshop on key financial fundamentals for entrepreneurs. The workshop objectives are to learn important financial terms and concepts, understand corporate obligations, and gain exposure to basic financial management. The agenda covers corporate record keeping requirements, basic financial statements like the income statement and balance sheet, and key metrics like gross margin, breakeven point, customer acquisition cost and lifetime value. Advanced financing concepts are also discussed such as projecting cash flow, evaluating businesses for traditional debt or venture capital, and types of financing. Real-world examples are provided to illustrate financial statement calculations.
Vacation rental management budgeting and financial management 401Amy Hinote
Budgeting and managing finances for vacation rental managers: An in-depth four hour boot camp incorporating more hands-on knowledge of how to manage the financial landscape and use budgeting as a foundational tool to grow the business and meet future goals.
Financial Management & Budgeting for Vacation Rental Companies by Ben Edwards, President Weatherby Consulting. Includes info about cash flow, income statements, reporting, revenue projections, and accounting.
Designed to benefit financial controllers and directors working in commerce, providing an ideal opportunity to update your knowledge on a wide range of subjects.
Financial Models are one of the things that entrepreneurs need to build for their businesses. This presentation gives a clear idea about how to put a financial model together.
Vacation rental management budgeting and financial management 401Amy Hinote
Budgeting and managing finances for vacation rental managers: An in-depth four hour boot camp incorporating more hands-on knowledge of how to manage the financial landscape and use budgeting as a foundational tool to grow the business and meet future goals.
Financial Management & Budgeting for Vacation Rental Companies by Ben Edwards, President Weatherby Consulting. Includes info about cash flow, income statements, reporting, revenue projections, and accounting.
Designed to benefit financial controllers and directors working in commerce, providing an ideal opportunity to update your knowledge on a wide range of subjects.
Financial Models are one of the things that entrepreneurs need to build for their businesses. This presentation gives a clear idea about how to put a financial model together.
Financial Planning - Joel Humphrey (Freelandt Caldwell Reilly LLP)NORCAT
Joel Humphrey, partner at Freelandt Caldwell Reilly LLP returns to ENT101 to discuss financing for start-ups.
Joel works with many of the firm’s start-up clients to review business plans, develop financial forecasts, map out cash flow strategies and arrange financing requirements. With Joel’s extensive experience with young companies, this lecture will be extremely informative for all levels.
Watch the presentation at http://www.norcat.org/ent-101/season-3-lectures/
C-Suite Snacks Webinar Series: Not Sold on Selling Your Business? Why Now is ...Citrin Cooperman
Sign up for our weekly C-Suite Snacks webinars here: https://www.citrincooperman.com/infocus/c-suite-snacks
Our C-Suite Snacks webinar series provides the middle market with brief, strategic, and tactical business improvement information for 30 minutes every week. Join Citrin Cooperman live every Thursday at noon for snack-sized insights for business executives.
The recently proposed tax provisions in the Biden Administration’s American Families Plan should provide substantial incentives for business owners to discuss the creation of an Employee Stock Ownership Plan (ESOP).
During this C-Suite Snacks webinar session, Howard Klein and Heather Oboda covered more about ESOPs, including:
- An overview of what an ESOP is including financial and non-financial benefits
- The common misconceptions about ESOPs
- How the current tax proposals make an ESOP more attractive
Financial Basics for Startups: How to Think Like a CFOSecureDocs
Complete slides from the December 9, 2014 webinar: Financial Basics for Startups: How to Think Like a CFO. Reviews top accounting apps for startups and small businesses as well as the benefits of outsourced controllers.
Back to Basics: Financial Fundamentals for StartupsIntelligent_ly
Back to Basics: Financial Fundamentals for Startups taught by Dan Allred from Silicon Valley Bank at Intelligent.ly in Boston. This deck covers basic accounting principles, income statements, balance sheets, cash flow, company financial statements and more.
Vacation Rental Income Statements "How-To" Ben Edwards, Weatherby Consulting Amy Hinote
Income statement fundamentals for vacation rental managers and short term rental companies. Presented by Ben Edwards, President of Weatherby Consulting and President of the Vacation Rental Managers Associaion
A Guide to Buying and Selling a Vacation Rental Management CompanyAmy Hinote
When selling your vacation rental management company, how do you know if the deal is the right one for your exit strategy? Ben Edward's session navigates you through this process and shows a vacation rental manager ways to avoid common pitfalls.
An accounting tool for those who find accounting difficult. Entrepreneurs who see new solutions, and are willing to take on risks, are right-brain dominant. Accounting (and numbers) are very left-brain. Profit Guard is a date visualization and communication tool, for financial management.
50+ CFO/Controller Best Practices for the Big PictureDoeren Mayhew
Doeren Mayhew Shareholder Juan Padilla shares more than 50 ideas to better manage the CFO/Controller workload so you can play a more strategic, big-picture role in the success of the company.
As an entrepreneur, your goal is to build a business that will grow for years to come. Review our presenters' slides with notes to show you how you can increase the value of your business, retain employees and evaluate growth options to achieve maximum success. Also learn about increasing the value of your business, leasing, franchising, and purchase & sale agreements.
To view our video coverage of the event, visit: http://www.welchllp.com/resource-centre/videos/events/
Avalon have been providing accountancy and financial management services to individuals, small and medium sized companies, partnerships, charities, clubs and associations since 1938. We have offices in Reading and Richmond upon Thames and our client base is distributed throughout the southeast and southwest.
As a trade business it is essential to create a game plan for the financial year to maximise the profitability of your business and maximise cash flow.
Financial Planning - Joel Humphrey (Freelandt Caldwell Reilly LLP)NORCAT
Joel Humphrey, partner at Freelandt Caldwell Reilly LLP returns to ENT101 to discuss financing for start-ups.
Joel works with many of the firm’s start-up clients to review business plans, develop financial forecasts, map out cash flow strategies and arrange financing requirements. With Joel’s extensive experience with young companies, this lecture will be extremely informative for all levels.
Watch the presentation at http://www.norcat.org/ent-101/season-3-lectures/
C-Suite Snacks Webinar Series: Not Sold on Selling Your Business? Why Now is ...Citrin Cooperman
Sign up for our weekly C-Suite Snacks webinars here: https://www.citrincooperman.com/infocus/c-suite-snacks
Our C-Suite Snacks webinar series provides the middle market with brief, strategic, and tactical business improvement information for 30 minutes every week. Join Citrin Cooperman live every Thursday at noon for snack-sized insights for business executives.
The recently proposed tax provisions in the Biden Administration’s American Families Plan should provide substantial incentives for business owners to discuss the creation of an Employee Stock Ownership Plan (ESOP).
During this C-Suite Snacks webinar session, Howard Klein and Heather Oboda covered more about ESOPs, including:
- An overview of what an ESOP is including financial and non-financial benefits
- The common misconceptions about ESOPs
- How the current tax proposals make an ESOP more attractive
Financial Basics for Startups: How to Think Like a CFOSecureDocs
Complete slides from the December 9, 2014 webinar: Financial Basics for Startups: How to Think Like a CFO. Reviews top accounting apps for startups and small businesses as well as the benefits of outsourced controllers.
Back to Basics: Financial Fundamentals for StartupsIntelligent_ly
Back to Basics: Financial Fundamentals for Startups taught by Dan Allred from Silicon Valley Bank at Intelligent.ly in Boston. This deck covers basic accounting principles, income statements, balance sheets, cash flow, company financial statements and more.
Vacation Rental Income Statements "How-To" Ben Edwards, Weatherby Consulting Amy Hinote
Income statement fundamentals for vacation rental managers and short term rental companies. Presented by Ben Edwards, President of Weatherby Consulting and President of the Vacation Rental Managers Associaion
A Guide to Buying and Selling a Vacation Rental Management CompanyAmy Hinote
When selling your vacation rental management company, how do you know if the deal is the right one for your exit strategy? Ben Edward's session navigates you through this process and shows a vacation rental manager ways to avoid common pitfalls.
An accounting tool for those who find accounting difficult. Entrepreneurs who see new solutions, and are willing to take on risks, are right-brain dominant. Accounting (and numbers) are very left-brain. Profit Guard is a date visualization and communication tool, for financial management.
50+ CFO/Controller Best Practices for the Big PictureDoeren Mayhew
Doeren Mayhew Shareholder Juan Padilla shares more than 50 ideas to better manage the CFO/Controller workload so you can play a more strategic, big-picture role in the success of the company.
As an entrepreneur, your goal is to build a business that will grow for years to come. Review our presenters' slides with notes to show you how you can increase the value of your business, retain employees and evaluate growth options to achieve maximum success. Also learn about increasing the value of your business, leasing, franchising, and purchase & sale agreements.
To view our video coverage of the event, visit: http://www.welchllp.com/resource-centre/videos/events/
Avalon have been providing accountancy and financial management services to individuals, small and medium sized companies, partnerships, charities, clubs and associations since 1938. We have offices in Reading and Richmond upon Thames and our client base is distributed throughout the southeast and southwest.
As a trade business it is essential to create a game plan for the financial year to maximise the profitability of your business and maximise cash flow.
Finance and cash management for entrepreneursJorge Saguinsin
This is a refresher for an entrepreneur who lacks complete knowledge and confidence in financial and cash management. These are mostly stock and common knowledge
Avoid startup mistakes in money management & financial planningAcceleratorYYC
We had Jacques Lapointe of AVAC discuss how to avoid "re-running" the same mistakes that commonly plague startups in Alberta for AcceleratorYYC's March 1 hr Lunch & Learn (slides & audio below).
My Business is Growing, Now What? Financial Management Skills for the Entrepr...McKonly & Asbury, LLP
This webinar will provide a foundation for entrepreneurs to properly manage their business’ growth and to position them and their business for future success. This webinar will touch upon a number of aspects that all entrepreneurs need to keep on their “radar” outside of top line revenue growth. This webinar will focus on the following key topics: balance sheet management, cash flow management, ratios, and long term value.
Nokia case study with reference to the text mentioned in the Philip Kotler's textbook of marketing management.
Internship under professor Sameer Mathur IIM Lucknow
The largest retail value chain of India- Subhiksha, failed. This case analyses some of the reasons for the same.
Largest retail value chain in India with 1600 outlets started in 1997 .
From 150 stores in Sept 2006 all of which were in Tamil Nadu the company grew rapidly to over 1600 stores by Sept 2008 across the country.
The company’s investors included Wipro’s Azim Premji and ICICI Prudential Mutual fund apart from the ESOP Trust.
Started with $8-10000. Turnover in 2008 was $451 million.
Expansion Timeline:
In March 1997 opening of the first retail store in Chennai, with $ 1 million initial investment.
March 99‐ 14 stores in Chennai.
June 2000‐ 50 stores in Chennai, ICICI ventures joins Subhiksha.
June 2002‐ 120 stores in whole of Tamil Nadu.
June 2006‐ 420 stores in other big states in India namely Gujarat, Delhi, Mumbai, Andhra Pradesh and Karnataka.
Feb 2007‐500 stores across country
Dec 2007‐ 1000 stores across India
October 2008‐ 1600 stores across India
RAPID EXPANSION VIA DEBT CAPITAL.
Reasons for the failure:
Expanding the number of stores rapidly without sufficient funds in hand.
Expansion of Stores without adequate system control and IT Support.
Government Intervention.
Lack of strong HR policy and Staff.
Strong Competition.
Over confidence and Aggressiveness.
Learning Outcomes:
Never be too aggressive with your expansion and growth plans unless you have enough finances.
Know your competitors inside out.
Understand your Strengths and Weaknesses and use them efficiently to gain and learn.
Debt Capital though profitable, is the most risky source of finance.
Thank You.
Dust Collecting: Panning for Competitive Intelligence Nuggets in Company Fina...Richter & Company LLC
Presentation by Brandon Conroy, Executive Consultant at Richter & Company, at the Association of Proposal Management Professionals (APMP) California Chapter Training Day November 6, 2015 in Anaheim, CA.
Rob Jones, managing director of Peloton Partners, shares emerging pricing trends in the industry based on data from 70 advised firms across Australia, and strategies for advice practices to extract latent value out of their business.
Financial Workshop - Builders Profitable Marketing Oct 2015 Roshan Fernando
Great presentation for Small Business owners to understand the importance of being able to read financial statements, the difference between profit and cash flow, the power of 1 and basic ratios and percentages to keep an eye on operational performance and cash flow...
TIMIA Capital Corporation is a specialty finance company that provides growth capital to technology companies in exchange for payments based on monthly revenue. This alternative financing option complements both debt and equity financing, while allowing entrepreneurs and existing stakeholders to retain ownership and control of their business. TIMIA’s singular focus is the fast growing, global, business-to-business Software-as-a-Service (or SaaS) segment. We align ourselves with entrepreneurial management teams growing their sales from $1 Million to $10 Million in Annual Recurring Revenue.
This presentation was made at the Washington Area Community Investment Fund (Wacif). This presentation goes over how to use financial statements and tools to make decisions.
Small business owners are entrepreneurial spirits with a particular talent or trade. While passionate about their craft, the financial aspects of running a business often present new challenges they are unprepared for. Even experienced business owners encounter new aspects of financial management as their businesses grow and expand. In this presentation, we will cover the principles of effective financial management every small business should know.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
2. Workshop Objectives
• Learn key financial terms and what they mean
to you and your business
• Understand your corporate obligations and
the importance of keeping organized records
3. Workshop Summary
At the end of the workshop participants should
have exposure to basic financial concepts and
corporate government obligations that will help
them in accessing financing and in managing
their business.
4. • TraditionalAccounting Firm with 110 people and offices
in KW, Guelph and Fergus
• Clients are primarily owner managed companies from
start ups to 500 employees in a wide range of industries
• Member of PKF North America (100 firms in North
America)
5. • Online Accounting Firm that is about to launch, aimed at
start-ups and small business
• Disrupt the industry
• Bookkeeping, government filings, monthly reporting, year
end statements, year end personal and corporate tax returns,
and financial, business management and strategic advice all
for a fixed monthly fee
6. Dave McEllistrum
• Managing Partner of RLB
for last 10 years
• Co-founder of aTech
hardware integrator
• Founder and Client
Experience Officer of
Amplify LLP
• Client focus on planning
(tax, financial, strategic,
management)
7. Michael McCutchen
• Senior Manager at RLB
and Amplify LLP
• Focus on all aspects of
small business
accounting and
planning
• Tax and HST resource
for the firms
8. Katie Cheesmond
• Director of Business
Development at RLB and
Amplify LLP
• Entrepreneurial
background with multiple
businesses
• Finance and Lending
• 10 years experience in
evaluating financing for
businesses
9. Aerin Smith
• Bookkeeping Leader at
RLB and Amplify LLP
• AccountingTechnology
expert
• Quickbooks Proadvisor
10. Agenda
Key Corporate Government ObligationsYou Should Know
An overview of government obligations for businesses and the importance of strong recordkeeping
Basic FinancialTerms and Concepts
An overview of key traditional financial terms that every entrepreneur should know
Case Study
Calculate the Gross Margin, Bottom Line and Breakeven Point
Advanced Metrics and FinancingTerms
A selection of more advanced terms and what they mean to you
Case Study
Simple Customer Acquisition Cost (CAC) and Customer LifetimeValue (LTV) Example
12. What Structure Do I Need?
• Is there liability risk in the company?
• Are there profits to be retained in the company?
• Are there others to participate in profits?
• Is the benefit worth the cost of another corporation?
• Is there potential to sell the business?
• Sole proprietor, corporation, holdings company, family trust
13. Errors Managing Money
• Should have a separate bank account for
business and personal
• Helps maintain good records by using the bank
accounts to build/confirm records from your
receipts
• Avoids surprises by seeing the flow of business
funds
14. Lack of Proper Documentation
• Loans should be documented. If the loans are from
someone other than the shareholder the loan needs to
bear interest
• Unfavourable tax result if money is loaned informally from a non-
participating spouse or family member (ie: parent)
• Shareholder agreements should be in place
• Employment contracts should be in place if there is an
employee/self employment scenario
• Subscription for shares must be paid
15. Inappropriate Draws
• Drawing from the company without
declaring/understanding the source
– Salary requires withholding tax andT4
– Dividends require a resolution andT5
– Management fees may require HST to be paid
• Each have particular requirements, especially for slip filing which
is subject to non-filing/late-filing penalties. For a December 31st
company, waiting until March or April to take the books to the
accountant might be too late.
16. Not Filing on
a timely basis
• Failure to remit payroll taxes
• 20% penalty
• Also interest at 5%
• Failure to fileT4 orT5
• $10 a day to a maximum of $1,000
• Failure to fileT2
• 5% of the liability
• Interest at 5%
• Installment payments
• Failure to remit 5%
• GST /HST
• Penalty by formula based on number of
months
• Interest at 5%
Voluntary disclosure may be
available to avoid penalties on
overdue filing
17. Tax Credits
• SRED – tax credit on eligible expenses for R&D
• Co-op/Apprentice – tax credits on eligible
programs
• Grants ̶ Training & Equipment
• HST ITCs & Rebates- not to be overlooked
19. Income Statement (Profit & Loss)
• The scorecard for your company’s results for a
period of time (often monthly, quarterly or annually)
• Includes revenue, variable costs, gross margin, fixed
costs, and net income or loss
• The primary building block for cash flow projections
20. Revenue
• The sales of the company for goods delivered or
services completed.
– aka: top line, gross income, run rate (extrapolated), sales
• Many tech firms are quoting bookings rather than
actual revenue
(http://www.wsj.com/articles/how-tech-startups-play-the-numbers-game-
1433903883)
21. Variable Costs
• Costs that vary in relation to changes in
revenue
– aka: cost of sales, cost of goods sold, direct costs
• Landed product cost for companies that sell goods
• Cost of staffing in companies that sell services
• Hosting costs for SaaS companies
22. Gross Margin (Gross Profit)
• Revenue minus variable costs
Gross margin % = gross margin divided by
revenue
A 30% gross margin % means that for every $1
of revenue you will have $0.30 to cover your
fixed costs and add to profitability
24. Fixed Costs (Overhead/Indirect)
• Don’t have a direct correlation to sales volume
– examples includes occupancy costs, administrative
costs, management costs, sales and marketing costs
• fixed costs will vary with large swings in sales
volume but are generally “stepped” in relation to
sales
25. Net Income or Loss
aka: bottom line, net earnings, net profit,
burn rate (if a loss - http://www.entrepreneur.com/article/242170)
• Revenue less variable costs less fixed costs
• The profitability or loss of the company for a
specific time period
26. Breakeven Point
• The $ of revenue required to breakeven
(no net income or loss) for a specific time period
based on assumptions for gross margin % and
fixed costs
Calculated by Fixed Costs/Gross Margin %
Ex: If we had projected fixed costs of $400,000 and a projected gross
margin % of 20% our breakeven point would be $2 Million in revenue
27. Example
• Our company started selling a fitness tracker in 2014.
• In 2014, we shipped 10,000 units at $55 each through our online channel
and shipped 5,000 units at $40 each to our distributors.
• In 2014, we had further confirmed orders from distributors of an
additional 2,000 units at $40 each that shipped in January 2015.
• The trackers were manufactured in China at a total cost of $23 per unit.
• Freight, duty and brokerage costs were $2 per unit.
• We bought 20,000 units during the year.
• Our rent and occupancy costs were $80,000, our sales and marketing
costs were $200,000, our administrative costs were $75,000 and our
personnel costs were $260,000.
28. Questions
1) What was our topline in 2014?
2) What was our cost of goods sold?
3) What is our gross margin?
4) What is our gross margin %?
5) What is our net profit or loss?
6) What is our burn rate per month?
7) What would our breakeven point be in 2015 if our
gross margin % and fixed costs didn’t change?
29. 1)Topline (Revenue)
• We have $550,000 ($55 x 10,000 units) from
our online channel and $200,000 ($40 x 5,000
units) from our distribution channel
• The 2,000 units not shipped until 2015 won’t
be revenue until 2015.
• Total revenue is $750,000. ($550K + $200K)
30. 2) Cost of Goods Sold
• Our variable costs equal our landed cost in this case
• Our landed cost per unit is $25 ($23 product cost + $2 freight)
• We sold 15,000 units (10,000 online + 5,000 distributors)
Our Cost of Goods Sold is $375,000
($25 cost per unit x 15,000 units sold)
It doesn’t matter how many we bought during the year only
how many we sold to determine our variable costs
31. 3) Gross Margin
• Our gross margin is $375,000
(Revenue of $750,000 – Cost of Goods Sold of
$375,000)
32. 4) Gross Margin %
• Our gross margin % is 50%
(Gross Margin of $375,000/Revenue of $750,000)
33. 5) Profit or Loss
• Our fixed costs are $615,000
($80K+$200K+$75K+$260K)
• Our loss for 2014 is $240,000
($375,000 gross margin - $615,000 in fixed costs)
34. 6) Burn Rate
• Monthly burn rate is $20,000
($240,000 loss divided by 12 months)
35. 7) Break Even Point
• 2015 break even point
Expected gross margin % of 50%
Expected fixed costs of $615,000
= $1,230,000 in revenue
($615,000 divided by 0.5 (50%))
36. Balance Sheet
• a snapshot at a point in time of a company’s
assets, liabilities, and shareholders’ equity.
Assets = Liabilities + Equity
37. Assets
• What a company owns
• Cash
• Accounts receivable (Outstanding customers
balance $ for goods or services that they have
received)
• Inventory (goods purchased but not resold yet)
• Equipment (capital assets)
38. Liabilities
• What a company owes
– accounts payable (Balance outstanding $ you haven’t
paid your suppliers for goods or services you have
received)
– HST payable (HST you have collected on sales but
haven’t paid to the government yet)
– Debt financing (loans that you are required to repay)
39. Equity
• What shareholders have left of their investment if
the company were to sell, after all debts are paid
• Includes
Share investments
+ Plus accumulated profits or - minus accumulated losses
since inception (Retained Earnings/Deficit)
– Less dividends paid to shareholders
40. Simple Example
In our fitness tracker example
• If shareholders had initially invested $500,000
in common shares
• Our customers are fully paid up
• We still owed our suppliers $40,000 …
41. Tracker Balance Sheet • Assets
Cash $175,000
(Investment – losses – inventory + not yet paid for that
inventory)
Inventory $125,000
(5,000 units unsold at $25 landed cost)
• Total Assets $300,000
• Liabilities
Accounts Payable $ 40,000
(still owing to suppliers)
• Shareholders’ Equity
Share Investment $500,000
Accumulated Losses (Deficit) ($240,000)
Total Shareholders’ Equity $260,000
• Total Liabilities plus Equity $300,000
42. Practical Recordkeeping
• Programs like Quickbooks Online make it
easy to produce these reports
– have standard categories for all types of financial
statement items
– accessible from any internet connected device
making it easier to monitor and manage
– easy to use
43. Quickbooks Online…
– Integrations with
• easy data entry and document management tools (Receipt
Bank, Hubdoc)
• business planning tools (Liveplan, Spotlight Forecasting)
• enhanced reporting tools (Spotlight Reporting)
• industry specific tools (Time tracking for service businesses,
inventory)
• non financial SaaS (project management)
45. UnderstandingYour Key Metrics
• All businesses are different
• Key to understanding what levers to push to
improve your results and meet your
milestones
• Dashboard
46. Custom Acquisition Costs
• The cost of acquiring each customer
Total marketing costs + marketing personnel costs + onboarding
#new customers generated for a period of time
• Compared with Customer Lifetime Value (CLV) to assess viability of
business (CLV divided by CAC)
• CAC payback period – the time period when our gross margin we
get from customers will cover their customer acquisition cost
https://blog.kissmetrics.com/customer-acquisition-cost/
47. Custom LifetimeValue
• Simple calculation requires
• (g) gross margin % per customer
• (r) average monthly or annual revenue per customer
• (l) average customer lifespan in months or years
Calculation CLV = g x r x l
• More complex calculations include varying customer
churn/retention rates, varying margins and annual customer
revenue and often include an inflation impact for businesses with
higher retention rates.
48. Example
• We spend $100,000 on marketing and
$100,000 on marketing personnel
• We get 2,000 new customers
• We have a
• 30% gross margin %,
• average monthly revenue per customer of $40
• and an average customer lifespan of 16 months
49. Questions
1) What is our CAC?
2) What is our CAC payback period?
3) What is our simple CLV?
4) What is our ratio of CLV to CAC?
50. Calculations
1) Our CAC is $100 ($200,000 in marketing and sales costs divided
by 2,000 new customers)
2) Our CAC payback period is 8 1/3 months ($100 CAC divided by $12
(30% of $40) margin per customer per month)
3) Our simple CLV is $192 (30% x $40 x 16 months)
4) Our CLV to CAC ratio is 1.92 to 1 ($192 divided by $100)
Best practice for SaaS businesses seems to be 3 to 1
Lots ofVC blogs and other info on this topic
52. Understanding Projecting Cash Flow
• Income statement projection is basis for cash
flow projections
– understanding
• timing of receiving funds from customers and of paying
government remittances and suppliers
• inventory timing if you sell goods
• capital asset needs (equipment, leasehold improvements
– getting your space ready for use)
53. EvaluatingYour Business
• Consistent Soft Factors evaluated by
traditional debt andVC investors
• team
• product
• market
• and ultimately product/market fit
https://www.linkedin.com/pulse/marc-andreessen-product-market-fit-startups-marc-andreessen
54. Traditional Debt Financing
• Why? - bootstrapped the company and want to retain
as much equity ownership as possible, time to market
not as important
• Traditional debt lenders are concerned with security -
how can they recover their loan if the business fails
(assets of the corporation, guarantees by
shareholders, guarantees by friends and family of
shareholders) …
55. • Financial ratios that traditional debt lenders use
include
– Debt to equity ratio
(total amounts owed divided by total shareholders’ equity)
– Debt service coverage ratio – does the company
have enough cash flow to repay the annual loan
payments and the interest
56. Venture Capital Financing
• Why? Unable to bootstrap the company, importance of time
to market, quick growth translating to quick increase in value
• Convertible debt – loans that can be converted to equity (shares) at
a later date – usually at a future financing round
• Capped – guaranteed to get a % of shares at conversion
• Uncapped – based on the valuation set by the financing round
• Financing round (Seed, Series A etc.) – trade equity (shares –
participation in decision making and future value) for funding,
meet milestones to get to the next round of financing