Financial Concepts for Running your Business (AmCham workshop April 24th 2012)

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Get the fundamentals right with three simple overviews - Accounting basics - Entrepreneurs/starters (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

Transcript of Financial Concepts for Running your Business (AmCham workshop April 24th 2012)

  • 1. Financial Conceptsfor Running your Business24/4/2012

2. Product & Service level Finance & Accounting level24/04/2012 Xavier Corman | Martin van Wunnik 2 3. Who we are ? Martin van Wunnik Xavier Corman24/04/2012 Xavier Corman | Martin van Wunnik 3 4. 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 statementCash crunch risk, grow or survive?- Cash flows & funding in times of crisis 24/04/2012 Xavier Corman | Martin van Wunnik 4 5. Get the fundamentals right with three simple overviews- Accounting basics 24/04/2012 Xavier Corman | Martin van Wunnik 5 6. Product &Service level 1.000 EUR 21% VAT(quarterly or monthly refund request/compensation) Investments Cash out: 1.210 EURCash in: 210 EUR (>3m) Profit impact: 200 EUR over 5y CostCash out: 1.210 EURCash in: 210 EUR (>3m)Profit impact: 1.000 EURDiscounted Cash Flows Finance & Accounting level 24/04/2012Xavier Corman | Martin van Wunnik6 7. Accounting: Balance SheetACTIVE PASSIVEEquity(Capital/Kapitaal) Non Current Assets (Actifs Immobiliss/ Vast Activa)LT DebtsCurrent Assets(Actifs circulants/ Vlottend Activa) ST Debts24/04/2012Xavier Corman | Martin van Wunnik7 8. Profit & Loss statements (P&L)COGS (Cost of Sales) General Expenditures Personnel Costs Revenues (Sales) DepreciationFinancial cost TaxesProfit24/04/2012Xavier Corman | Martin van Wunnik8 9. Show me the money!Revenues (Sales) COGS (Cost of Sales)General ExpendituresCharges Personnel CostsFinancial costTaxes Depreciation CASHCASH-FLOW IF NEGATIVEDRAINProfit24/04/2012Xavier Corman | Martin van Wunnik 9 10. Get the fundamentals right with three simple overviews- Entrepreneurs / projects (financial plan) 24/04/2012 Xavier Corman | Martin van Wunnik 10 11. http://www.monstarterkit.be/bzplan.cfm24/04/2012Xavier Corman | Martin van Wunnik 11 12. 24/04/2012 Xavier Corman | Martin van Wunnik 12 13. Content Financial Plan Assumptions Profit & Loss Balance Sheet / Investment Cash-Flow -> Cash needed Valuation of the project Profitability / return of the project Dont waste your time in developing a huge financial plan before being sure that your project is viable !24/04/2012Xavier Corman | Martin van Wunnik13 14. Financial Plan in 10 min /questionsWhat are your revenues ?What are your costs ?What are your investments ? How many persons for your project ?24/04/2012Xavier Corman | Martin van Wunnik 14 15. 3 to 5 years Monthly or Quarterly base Excel or Calc is your friend Start by listing your main assumptions24/04/2012Xavier Corman | Martin van Wunnik 15 16. Tips for assumptions Office: 10-25 m/person EUR 100/m/year + 15 % for maintenance [ or COWORKING !] Insurances: 1 -3 % of revenues Marketing: define a % of revenues + startinginvestment Dont forget lawyers, accountant, socialsecretary, office supplies24/04/2012 Xavier Corman | Martin van Wunnik 16 17. 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 : Realisticdifferent hats24/04/2012Xavier Corman | Martin van Wunnik 17 18. Where to look to find the main information- Balance sheet - Profit & Loss statement 24/04/2012 Xavier Corman | Martin van Wunnik 18 19. www.nbb.be On-line consultation of annual accountswww.data.beYearly publication2 yearsShort or Long versionPublic!24/04/2012Xavier Corman | Martin van Wunnik 19 20. 24/04/2012 Xavier Corman | Martin van Wunnik 20 21. 24/04/2012 Xavier Corman | Martin van Wunnik 21 22. 24/04/2012 Xavier Corman | Martin van Wunnik 22 23. GROSS MARGIN GENERAL EXPENDITURES PERSONNEL COSTS DEPRECIATION FIN. REVENUES FINANCIAL COSTS LOSS24/04/2012 Xavier Corman | Martin van Wunnik 23 24. Cash crunch risk, grow or survive?- Cash flows & funding in times of crisis 24/04/2012 Xavier Corman | Martin van Wunnik 24 25. CASH24/04/2012 Xavier Corman | Martin van Wunnik 25 26. Required Cash-Flow24/04/2012 Xavier Corman | Martin van Wunnik 26 27. How to finance your start-up ?24/04/2012 Xavier Corman | Martin van Wunnik 27 28. Next WorkshopsICAB (Brussels)Registration through www.westartup.eu (50 EUR VAT incl.)24/04/2012 Xavier Corman | Martin van Wunnik 28 29. This presentation is available for free: www.slideshare/FinanceCoach24.com www.slideshare.net/xaviercormanGroup: www.meetup.com/Finance-for-Startups24/04/2012Xavier Corman | Martin van Wunnik 29