2. ● Developing Financials for Speakamos and
Enso Data
● Objectives
o Provide pro forma Balance Sheet and Income
Statements by update two (3/16).
o Develop Cash Flow Projection model by third
project update presentation (4/13/15).
Project Overview
3. OKR 1 Explanation
Objective: Have financial statements prepared by
update two (3/16/15)
Key Results:
❖ Obtain all financial information from Bill and Alex.
❖ Develop functional spreadsheet to enter financial
information.
➢ Construct in a way that will be easy for each
entrepreneur to use after this class.
4. Grade: 0.8
Explanation:
❖ Gathered information and built statements on time
❖ Challenge: difficult to gather accurate and relevant
information
❖ Grade initially 0.5-0.6 due to lack of foresight of
changing needs and obsolescence of information
OKR 1 Grade
5. OKR 2 Explanation
Objective: Develop pro forma financial
projections by update three (4/13/15)
Key Results:
❖ Research and identify techniques necessary to
represent each startup.
❖ Apply techniques for projections, using sensitivity
analysis to evaluate results
6. Grade: 0.9
Explanation:
❖ Projected 6 pro forma financial statements across 120
time periods.
❖ Completed sensitivity analysis and delivered
statements by deadlines (Burrill, Qualcomm, updates)
❖ Challenging to accurately estimate costs and financing
needs
OKR 2 Grade
7.
8.
9. ● Responded to changes in needs and fulfilled
OKRs
● Maintained constant communication with team
BL and with the clients to reach our goals
● Mission was achieved
Mission Achieved?
10. ● Challenging educational experience
o Projected four types of revenue models, pro
forma financial statements and sensitivity
analysis
o Had to do so with significant ambiguity
● Opportunity to apply skills in real life
scenarios to benefit classmates
Comments on the Project
Editor's Notes
Developing BS, IS, CF including assumptions for projections
to help with competitions like Burrill and future investors
REMEMBER TO MENTION THE IMPROVEMENT -- GRADE WOULD HAVE BEEN 6 OR 7 BUT WE LEARNED AND MADE IMPROVEMENTS
Pros:
all info on time
Cons:
Some information was constantly changing (ED’s revenue model, Speakamos assumptions about userbase growth rate, tutor hours per month
Construct easy to use spreadsheets
assumptions formatted in green and bottom lines formatted in bold
Assumptions soft coded for interactive spreadsheets following directly from assumptions ( assumption to each part of revenue model to income statement to sensitivity analysis)
Developed a detailed list of assumptions for each business’s financial statements
Pros: Met all of the important dates
Developed a great revenue model
Completed sensitivity analysis
Made IS, BS, SCF for each startup projected first 12 months and quarterly for year 2 and 3 (total of 6 financial statements with projections across a total of 120 time periods).
Cons:
Hard to estimate all costs
Hard to predict future needs/timing of financing
Project revenue models, not valuing assets
Ambiguity → Assumptions
Being exposed to the difficulties in starting a business
Rather than using models traditionally taught in school,
Used alternative models to project revenues
Learned how to deal with AMBIGUITY in a start-up’s financials and long-term goals,
Making assumptions
More valuable to potential employers
Applied vs theoretical knowledge
