24.4.12 am cham
TRANSCRIPT
Financial Concepts for Running your Business
24/4/2012
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Product & Service level
Finance & Accountinglevel
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Who we are ?
Martin van Wunnik
Xavier Corman
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Get the fundamentals right with three simple overviews - Accounting basics - Entrepreneurs / projects (financial plan)
Where to look to find the main information - Balance sheet - Profit & Loss statement
Cash crunch risk, grow or survive? - Cash flows & funding in times of crisis
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Get the fundamentals right with three simple overviews
- Accounting basics
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Product & Service level
Finance & Accountinglevel
1.000 EUR
21% VAT(quarterly or monthly refund request/compensation)
Investments Cash out: 1.210 EUR
Cash in: 210 EUR (>3m)Profit impact: 200 EUR over 5y
Cost Cash out: 1.210 EUR
Cash in: 210 EUR (>3m)Profit impact: 1.000 EUR
Discounted Cash Flows
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Accounting: Balance Sheet
Non Current Assets(Actifs Immobilisés/
Vast Activa)
Equity (Capital/Kapitaal)
LT Debts
ST Debts
Current Assets (Actifs circulants/Vlottend Activa)
ACTIVE PASSIVE
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Revenues (Sales…)
COGS (Cost of Sales)
General Expenditures
Personnel Costs
Depreciation
Financial cost
Profit
Gro
ss m
argi
n
EBIT
DA
Taxes EBIT
Profit & Loss statements (P&L)
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Revenues (Sales…)
Depreciation
Profit
Charges
CASH-FLOW IF NEGATIVECASH
DRAIN
Show me the money!
COGS (Cost of Sales)
General Expenditures
Personnel Costs
Financial cost
Taxes
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Get the fundamentals right with three simple overviews
- Entrepreneurs / projects (financial plan)
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http://www.monstarterkit.be/bzplan.cfm
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Content Financial Plan
– Assumptions– Profit & Loss– Balance Sheet / Investment– Cash-Flow -> Cash needed
– Valuation of the project– Profitability / return of the project
Don’t waste your time in developing a huge financial plan before being sure that your project is viable !
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Financial Plan in 10 min /questions
What are your revenues ?
What are your costs ?
What are your investments ?
How many persons for your project ?
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• 3 to 5 years
• Monthly or Quarterly base
• Excel or Calc is your friend
• Start by listing your main assumptions
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Tips for assumptions
• Office: 10-25 m²/person• EUR 100/m²/year + 15 % for maintenance
[ or COWORKING !]• Insurances: 1 -3 % of revenues• Marketing: define a % of revenues + starting
investment• Don’t forget lawyers, accountant, social
secretary, office supplies…
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Tips for assumptions• Car leasing : 300 – 800 EUR per month• Salary : Gross monthly x 19,2 = Yearly cost
• Revenues: worst-case & best-case– First 3 to 6 months: 0 EUR – Maximum ‘billable’ hours per day
(one-off events, holidays, prospecting, etc...)
• Own salary : Realistic different ‘hats’
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Where to look to find the main information
- Balance sheet - Profit & Loss statement
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www.nbb.be “On-line consultation of annual accounts”
www.data.be
Yearly publication2 years Short or Long version
Public!
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GROSS MARGIN – GENERAL
EXPENDITURESPERSONNEL COSTS
DEPRECIATION
FINANCIAL COSTS
FIN. REVENUES
LOSS
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Cash crunch risk, grow or survive?
- Cash flows & funding in times of crisis
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Buy productPay product Sell product Waiting
payment
Get payment
CASH
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Required Cash-Flow
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EquityLT DebtsST Debts
FFF
B A
V C
Crowd
Public
Banks
Shareholders
Clients
Suppliers
Banks
Shareholders
How to finance your start-up ?
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Next Workshops• Company Setup06/03/2012 | 18:30 – 20:30
• Accounting20/03/2012 | 18:30 – 20:30
• Financial Plan17/04/2012 | 18:30 – 20:30
• Funding15/05/2012 |16:30 – 18:30
• Valuation29/05/2012 |18:30 – 20:30
ICAB (Brussels)
Registration through www.westartup.eu (50 EUR VAT incl.)
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This presentation is available for free:
www.slideshare/FinanceCoach24.com
www.slideshare.net/xaviercorman
Group: www.meetup.com/Finance-for-Startups