basics of financial planning for a bootstrapped start up

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Welcome Fundraising, cost planning and budgeting during bootstrapping Think > Plan > Execute September 30, 2014 Presented by: Fernanda – Start Up Chile / Cheruku – IDOS CORP

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Basic guidelines for financial planning during bootstrapping your start up. SUP Academy Start up Chile. Santiago.

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Page 1: Basics of financial planning for a bootstrapped start up

Welcome

Fundraising, cost planning and budgeting during bootstrapping

Think > Plan > Execute

September 30, 2014Presented by:Fernanda – Start Up Chile / Cheruku – IDOS CORP

Page 2: Basics of financial planning for a bootstrapped start up

Aim for the Goal.

What do you want to achieve with your business?

Think Plan Execute

• Business plan• Cost planning• Budgeting• Source of money

• Goal• Time• Resources• Revenue generation• Fund raise

• Implement• Revise

Page 3: Basics of financial planning for a bootstrapped start up

Think.Goal –> Customers, competition, value creation, short & medium term goals

Time -> Final concept, MVP, Beta & Launch

Resources -> Staff, computers, office, etc.

Revenue Generation -> When, from whom & how much

Fund raise -> Bootstrap, Seed / Angel, VC, etc.

Page 4: Basics of financial planning for a bootstrapped start up

Plan.

ProductWhat are we building?

CostHow much money do

we need?

BudgetWhat expenses do we need to incur & when

Source of funds

Where do we get the money for expenses

Page 5: Basics of financial planning for a bootstrapped start up

Plan.

ProductWhat are we building?

What problem is the product going to solve How many people / businesses have this problem Are there other competing products to solve this problem Differentiators in our product How will be sell our product – marketing & sales strategy Monthly burn Pricing Break-even

Page 6: Basics of financial planning for a bootstrapped start up

Plan.

CostHow much money do we

need?

Must have One time expenses Monthly expenses

Good to have One time expenses Monthly expenses

Page 7: Basics of financial planning for a bootstrapped start up

Plan – Cost planningJan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Must have 150000

Monthly Total expenses 145400

Office 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000

Salaries 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000

Utilities 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000

Travel 2000 1000 0 5000 0 0 1000 2000 0 3000 1000 4000

Total 12000

11000 10000 15000 10000 10000 11000 12000 10000 13000 11000 14000

One time

Laptop 1500 0 0 0 0 2000 0 0 2500 0 0 0

Printer 0 0 0 200 0 0 0 0 0 0 0 0

License 100 0 0 0 0 0 100 0 0 0 0 0

Total 1600 0 0 200 0 2000 100 0 2500 0 0 0

13600

11000 10000 15200 10000 12000 11100 12000 12500 13000 11000 14000

Page 8: Basics of financial planning for a bootstrapped start up

Plan – BudgetJan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Expenses 13600

11000 10000 15200 10000 12000 11100 12000 12500 13000 11000 14000

Funds available

Personal 12000

12000 12000 12000 12000 12000 12000 12000 12000 12000 12000 12000

Sales 0 0 0 0 0 0 0 0 0 3000 5000 5000

Shortage 1600 0 0 3200 0 0 0 0 500 0 0 0

Surplus 0 1000 2000 0 2000 0 900 0 0 2000 6000 3000

Total shortage 5300

Total surplus 16900

Net surplus 11600

Page 9: Basics of financial planning for a bootstrapped start up

http://www.youtube.com/watch?v=pN709oX9Bzk

Page 10: Basics of financial planning for a bootstrapped start up

Plan – Source of funds

Source of funds

Where do we get the money for expenses

How much money to raise? When to raise money? How to raise the money & at what cost?

Sales revenue Accelerators Friends and family Loan from banks Angel investment Venture capital

Page 11: Basics of financial planning for a bootstrapped start up

Execute.

Page 12: Basics of financial planning for a bootstrapped start up

Thank you