This document provides an overview of pro forma financial planning and analytics for small businesses. It discusses best practices for SMB financial planning, opportunities and pitfalls, and making analytics a value-added process. It also introduces the GPX Software solution called Xambrosius, which automates pro forma creation to reduce spreadsheet programming waste. Xambrosius connects to popular accounting systems and provides pre-programmed industry models, scenario planning, and analytics comparisons to actuals and competitors.

1. GPX Software
© 2012 GPX Software, LLC Sep-12 Page 1

2. Today’’s Team
Rick Goldstein GPX Bruce Moyer GPX
Kurt Siebenaller UHY
© 2012 GPX Software, LLC Sep-12 Page 2

3. What is a Proforma Financial Plan ?
It is a
roadmap to
the future!
© 2012 GPX Software, LLC Sep-12 Page 3

4. Roadmaps
Did You
Hear Me? Cash is
I Said Everything!!
Did I Cash!
mention
Much Cash?
More
Cash Debt
More Venture
Cash Angel Capital
Seed
Cash Pre-Seed
Startup
© 2012 GPX Software, LLC Sep-12 Page 4

5. Roadmaps
Costs
Do I Really
Milestone Understand My
4 Costs Expense Costs?
Do I Really
Understand My Costs
People Costs? It Sure Would Be
Milestone
3 Costs Nice To Know
Do I Really What Others In
Costs Understand My My Industry Do!
Do I Really Plant/Property
Milestone or Equipment
2 Understand
Cash Costs?
My Product
How Much?
Costs?
When Do I
Milestone Need It?
1
Year 1 Year 2 Year3 Year 4 Year 5
© 2012 GPX Software, LLC Sep-12 Page 5

6. • Opportunities & Pitfalls of Small Business (SMB)
Financial Planning, and Analytics
• Best practices to make SMB Financial Planning,
Agenda and Analytics a value-added process for your
businesses
– Why you need a dedicated Proforma Development &
Analytics tool
– What to look for when choosing a technology solution
– Xambrosius overview & advantages
• Let’’s Talk about Examples
– Preparing to make a Proforma Financial Plan
– How to get the most out of comparable company
analytics
– What do banks or investors want to see in your
Proforma Financials, and why
© 2012 GPX Software, LLC Sep-12 Page 6

7. Best Practices #1
The process must be linked to strategic and operational planning.
– Identify, prioritize, and invest in projects
that align with corporate strategy
– Focus on things that drive performance
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8. Best Practices #1
Align your plans and budgets to the corporate objectives and operating
plans for all areas of the business
Purchasing
Executive Human
Mgmt. Resources
Information
Distribution
Systems
Customer
Marketing
Service
Sales
Finance Production
© 2012 GPX Software, LLC Sep-12 Page 8

9. Best Practices #2
Minimize time spent collecting and gathering data and
more time generating information for strategic decision
making.
Less time reporting /
more time analyzing
© 2012 GPX Software, LLC Sep-12 Page 9

10. Best Practices #3
STOP wasting time programming spreadsheets
=+(IF(ISERROR((HLOOKUP('PROFORMAQtr'!D$2,Program1!$D$215:$X$244,4,FALSE))),0,(HLOOKU
P('PROFORMAQtr'!D$2,Program1!$D$215:$X$244,4,FALSE)))+IF(ISERROR((HLOOKUP('PROFORMA
Qtr'!D$2,Program2!$D$215:$X$244,4,FALSE))),0,(HLOOKUP('PROFORMAQtr'!D$2,Program2!$D$215
:$X$244,4,FALSE)))+IF(ISERROR((HLOOKUP('PROFORMAQtr'!D$2,Program3!$D$215:$X$244,4,FAL
SE))),0,(HLOOKUP('PROFORMAQtr'!D$2,Program3!$D$215:$X$244,4,FALSE)))+IF(ISERROR((HLOO
KUP('PROFORMAQtr'!D$2,Program4!$D$215:$X$244,4,FALSE))),0,(HLOOKUP('PROFORMAQtr'!D$2,
Program4!$D$215:$X$244,4,FALSE)))+IF(ISERROR((HLOOKUP('PROFORMAQtr'!D$2,Program5!$D$
215:$X$244,4,FALSE))),0,(HLOOKUP('PROFORMAQtr'!D$2,Program5!$D$215:$X$244,4,FALSE)))+IF(
ISERROR((HLOOKUP('PROFORMAQtr'!D$2,Program6!$D$215:$X$244,4,FALSE))),0,(HLOOKUP('PR
OFORMAQtr'!D$2,Program6!$D$215:$X$244,4,FALSE)))+IF(ISERROR((HLOOKUP('PROFORMAQtr'!
D$2,Program7!$D$215:$X$244,4,FALSE))),0,(HLOOKUP('PROFORMAQtr'!D$2,Program7!$D$215:$X$
244,4,FALSE))))
License # dt110607dhct
© 2012 GPX Software, LLC Sep-12 Page 10

11. Best Practices #4
• Be timely and precise with your plans.
– Don’t allow your plans to result in
irrelevant/obsolete data
– Leverage technology to complete a faster
planning cycle
• Create an agenda:
– Week 1:
Define corporate & operational goals and KPIs
– Week 2:
Communicate the process to everyone & accept feedback
– Week 3:
Complete first pass of budget
– Week 4:
Complete second pass of budget
– Week 5:
Finalize budget and communicate to departments
© 2012 GPX Software, LLC Sep-12 Page 11

12. Best Practices #5
Plans and forecasts need to accept changes quickly and easily.
– Should be a continuous process
– Minimize time spent on iterations
– Allow for the creation of
• More scenarios
• More ““what ifs””,
– ““best case””
– ““worst case””
© 2012 GPX Software, LLC Sep-12 Page 12

13. Best Practices #6
5. Respond to constantly changing market
conditions.
– Monthly evaluation of actuals vs. your plan,
re forecasting where necessary,
rolling forecasts, and what if analyses allow you to:
• Understand and manage cash
• Be more forward thinking
• Make better business decisions, armed with
insight into trends and multiple variables
• Add visible value to your process
© 2012 GPX Software, LLC Sep-12 Page 13

14. Opportunities & Pitfalls of
SMB Financial Planning, and Analytics
• Opportunities
– The cornerstone for future, sound decision making
– Plan expenses and revenues, savings, etc.
– Establish objectives, KPIs, and recognize dependencies
– Match resources to opportunity
• Pitfalls
– SMB’’s often under estimate requirements
– SMB’’s under estimate the value of a well developed financial
Proforma to banks and other financial institutions
– SMB’’s believe that Financial Planning, and Analytics is just for
larger companies
© 2012 GPX Software, LLC Sep-12 Page 14

15. Making Proforma Planning & Analytics a
Value-Added Process?
• The Problem
– SMB’s know they need tools to validate business
decisions, but they do not know what is available other
than spreadsheets
– Many SMB’s believe that the business intelligence
benefits of the process do not outweigh the costs
– Resulting budgets often do not match strategic goals
and objectives
• The solution
– Implement best practices to transform the process
– Automate the process with dedicated tools
• Take uncontrollable variables
out of the process!
© 2012 GPX Software, LLC Sep-12 Page 15

16. The Process
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17. COGS vs. % Rev. Example: Catering Business
Tomato & Mozzarella Salad
Direct Costs Per-LB Actual Cost
Tomato $0.75 $0.38
Mozzarella $1.99 $1.00
Prosciutto Ham $18.99 $0.95
Basil $1.00 $0.10
Olives $0.75 $0.15
Olive Oil $0.50 $0.10
Balsamic Vinegar $1.50 $0.30
Direct Cost of: $2.97
Food Service work on a % of Revenue Model
Direct Food Costs Must Not Exceed 30%
Therefore Sales Price = $9.95
Gross Margin 70%
© 2012 GPX Software, LLC Sep-12 Page 17

18. People Example: Catering Business
People Costs Min Wage # Req'd $/Hr. 4:00 - 12:00
Servers $11.88 6 $71.28 $570.24
Bar $12.00 1 $12.00 $ 96.00
Cooks $15.00 3 $45.00 $360.00
Cleaners $7.65 2 $15.30 $122.40
Hostess $7.65 2 $15.30 $122.40
Wage Costs $1,271.04
© 2012 GPX Software, LLC Sep-12 Page 18

19. Assets Example: Catering Business
Useful Life Asset Expense Cost? Depreciation Cost/Yr.
Facility 30 years XX $250,000 Facility $8,333.33
Tables 5 years XX
Chairs 3 years XX
Plates 3 years XX
Glasses 1 year XX
Flatware 3 years XX
Linen 1 year XX
© 2012 GPX Software, LLC Sep-12 Page 19

20. The Process
Cash
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21. GPX Focuses on Best Practice #3
STOP wasting time programming spreadsheets
=+(IF(ISERROR((HLOOKUP('PROFORMAQtr'!D$2,Program1!$D$215:$X$244,4,FALSE))),0,(HLOOKU
P('PROFORMAQtr'!D$2,Program1!$D$215:$X$244,4,FALSE)))+IF(ISERROR((HLOOKUP('PROFORMA
Qtr'!D$2,Program2!$D$215:$X$244,4,FALSE))),0,(HLOOKUP('PROFORMAQtr'!D$2,Program2!$D$215
:$X$244,4,FALSE)))+IF(ISERROR((HLOOKUP('PROFORMAQtr'!D$2,Program3!$D$215:$X$244,4,FAL
SE))),0,(HLOOKUP('PROFORMAQtr'!D$2,Program3!$D$215:$X$244,4,FALSE)))+IF(ISERROR((HLOO
KUP('PROFORMAQtr'!D$2,Program4!$D$215:$X$244,4,FALSE))),0,(HLOOKUP('PROFORMAQtr'!D$2,
Program4!$D$215:$X$244,4,FALSE)))+IF(ISERROR((HLOOKUP('PROFORMAQtr'!D$2,Program5!$D$
215:$X$244,4,FALSE))),0,(HLOOKUP('PROFORMAQtr'!D$2,Program5!$D$215:$X$244,4,FALSE)))+IF(
ISERROR((HLOOKUP('PROFORMAQtr'!D$2,Program6!$D$215:$X$244,4,FALSE))),0,(HLOOKUP('PR
OFORMAQtr'!D$2,Program6!$D$215:$X$244,4,FALSE)))+IF(ISERROR((HLOOKUP('PROFORMAQtr'!
D$2,Program7!$D$215:$X$244,4,FALSE))),0,(HLOOKUP('PROFORMAQtr'!D$2,Program7!$D$215:$X$
244,4,FALSE))))
License # dt110607dhct
© 2012 GPX Software, LLC Sep-12 Page 21

22. What is Xambrosius and Why do You Care?
• Cloud-based delivery:
• Multiple Pre-Programmed Industry Models (no Excel Formulization)
• No software or hardware to install
• Nothing to update – no ”IT” headaches
• Turbo Tax®- Concept
• Data Mining of:
• Company Comparables
• Employee Data
• Financial Analysis,
Reporting, and Dashboards
• Multiple Year
• Income Statements
• Balance Sheets, and
• Cash Flow Statements M7
• “What If” Scenario or Contingency Planning
• Actual vs. Forecast vs. Comparable Analytics
© 2012 GPX Software, LLC Sep-12 Page 22

23. Xambrosius Connects to the most popular
ERP Financial Systems!
• Accounting System Interfaces
• QuickBooks
• Sage Products
• Mass 90/200/500
• SAP Business One
• MS
• Dynamics
• GP
• AX
• BS&A Software
• And More
• Web Based Banking
Reports of:
• Borrowing Base Certificates
• 3 yrs. of historical and 3 yrs. of Pro Forma
financials and analytics including: Income
Statement, Balance Sheet, and Cash Flow
reporting of “Actual vs. Plan vs. Comparables
© 2012 GPX Software, LLC Sep-12 Page 23

24. Product Scalability
#2 Manufacturing #1 Software
#3 General Purpose
/ Consulting
#4 Internet /
Content
Small Bank –
Loan portfolio
Lending
Analytics
Municipality - Hospital
ProForma Lean Cost Service /
Forecasting Forecasting Consulting
© 2012 GPX Software, LLC Sep-12 Page 24

25. DEMO
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26. Thank You
For additional information
Please e-mail us at : marketing@gpxsoftware.com
or by
Telephone: 855-443-8479
Oct 2010