Financial planning basics using WynPlan.

1. Financial Planningfor theEmerging Growth Company Using WynPlan SRD Growing Business. Managing Success. © C. F. Advisors 2010

2. Financial Planning for the Emerging Growth Company What is WynPlan SRD? It’s a Sales Representative driven financial model developed in an Excel 2007 spreadsheet specifically designed for small emerging growth-oriented companies, from startup to over $50 million. What are its Core Value Propositions? It allows the non-financially trained business practitioner to: Efficiently develop a robust financial plan, Better understand the relationships between financial and operational drivers, and Dramatically improve resulting financial performance.

3. Financial Planning for the Emerging Growth Company What are its reporting functions? WynPlan SRD generates the following standard reports: Assumptions (drivers) Summary: (Drivers are KEY because they define Plan Performance) Performance Reports: P&L, BS, CF and more Is it comprehensive? Yes. It is comprehensive and complete. But we are always available to answer a question or help as needed.

4. Financial Planning for the Emerging Growth Company The Financial Planning Process has: A Beginning When you to start your plan Middle The progression of defining company structure and drivers, leading to the iterative process of revising, fine-tuning, optimizing and What-IF-ing End This usually occurs when you run out of time WynPlan will help you get started and fine-tune the plan until it is a solid reflection of your business goals and objectives.

7. Sales & Marketing Department

8. General & Administrative Department

11. Hire Senior Sales Rep during Month 9Step 1: Define Selling Profiles for: Sales Rep and Senior Sales Rep Step 2: Define hiring dates for sales team (months 2 & 9).

12. Financial Planning for the Emerging Growth Company Sales Rep Profile Senior Sales Rep Profile Combined Sales Performance

14. Structure headcount plan by department

16. Financial Planning for the Emerging Growth Company Define Expense Plan Expenses defined per department Expense start date linked to Plan start date Up to three planning methods per expense item Cash or Accounts Payable payment option per expense item Three planning increment options per expense item, which allows for an increase or decrease in granularity

17. Financial Planning for the Emerging Growth Company Define Current Assets – Relationships & Performance Accounts Receivable Immediate cash receipts (DSO = 0) plus receipts on account (DSO = user defined). Planned DSO is variable over time Inventory Days of on-hand inventory (variable over time) used as planning driver. Provision for COD payments as well as payments on account Prepaid Expense Expensed as a G & A expense over time specified

18. Financial Planning for the Emerging Growth Company Define Fixed Asset Requirements Allows for (user defined) capitalization amount Computer equipment acquired per employee (amount specified by department and depreciated over a maximum of five years) Other computer equipment acquired (capital amount specified per month and depreciated over same number of years as above) Other fixed assets (capital amount specified per month and depreciated over defined number of years)

19. Financial Planning for the Emerging Growth Company Define Current Liabilities Relationships & Performance Accounts Payable Days Payable used as driver (variable over duration of plan) Accrued Liabilities Included accrued interest as well as accrued sales commission Other Current Liabilities Represents accrued income tax liability

20. Financial Planning for the Emerging Growth Company Define Financing Plan Equity Infusion Start-up equity and two additional rounds Bank Loan Iterative process of revising and fine tuning drivers

21. Financial Planning for the Emerging Growth Company Iterative Process of Revision & Fine Tuning Examine the Assumptions (Drivers) Report to develop awareness as to what drives the plan. Identify potential changes. Examine the Output (Performance) Report to develop awareness as to how the plan performs. Pay attention to the Sales Representative Detail sheet so as to understand Sales Rep contribution. Use the WynPlan ribbon on the Drivers sheet to monitor the effects of changes to Drivers as a means of optimizing performance.

22. Financial Planning for the Emerging Growth Company When you run out of time and have to “finish” the Plan, remember the two truisms of financial and business planning: Always under promise and over deliver. The BEST way to predict the future is to make it happen. C.F. Advisors wyn@wynplan.com 952 996-9091