Financial Concepts

for Running your Business

24/4/2012

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Product & Service

level

Finance & Accounting

level

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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 & Accounting

level

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

Taxes

Profit & Loss statements (P&L)

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Revenues (Sales…)

Depreciation

Profit

Charges

CASH-FLOW IF NEGATIVECASH

DRAIN

CASH

DRAIN

COGS (Cost of Sales)

General Expenditures

Personnel Costs

Financial cost

Taxes

Show me the money!

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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 publication

2 years

Short or Long version

Public!

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GROSS MARGIN

– GENERAL

EXPENDITURES

PERSONNEL 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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CASH

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Required Cash-Flow

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How to finance your start-up ?

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Next Workshops

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