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

1. Financial Concepts
for Running your Business
24/4/2012

2. Product & Service
level
Finance & Accounting
level
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3. Who we are ?
Martin van Wunnik
Xavier Corman
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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 statement
Cash crunch risk, grow or survive?
- Cash flows & funding in times of crisis
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5. Get the fundamentals right with three simple overviews
- Accounting basics
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6. Product &
Service 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
Finance & Accounting
level
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7. Accounting: Balance Sheet
ACTIVE PASSIVE
Equity
(Capital/Kapitaal)
Non Current Assets
(Actifs Immobilisés/
Vast Activa)
LT Debts
Current Assets
(Actifs circulants/
Vlottend Activa) ST Debts
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8. Profit & Loss statements (P&L)
COGS (Cost of Sales)
General Expenditures
Personnel Costs
Revenues (Sales…)
Depreciation
Financial cost
Taxes
Profit
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9. Show me the money!
Revenues (Sales…)
COGS (Cost of Sales)
General Expenditures
Charges
Personnel Costs
Financial cost
Taxes
Depreciation CASH
CASH-FLOW IF NEGATIVE
DRAIN
Profit
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10. Get the fundamentals right with three simple overviews
- Entrepreneurs / projects (financial plan)
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11. http://www.monstarterkit.be/bzplan.cfm
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13. 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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14. 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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15. • 3 to 5 years
• Monthly or Quarterly base
• Excel or Calc is your friend
• Start by listing your main assumptions
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16. 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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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 : Realistic
different ‘hats’
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18. Where to look to find the main information
- Balance sheet - Profit & Loss statement
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19. 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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23. GROSS MARGIN
– GENERAL
EXPENDITURES
PERSONNEL COSTS
DEPRECIATION
FIN. REVENUES
FINANCIAL
COSTS
LOSS
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24. Cash crunch risk, grow or survive?
- Cash flows & funding in times of crisis
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25. CASH
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26. Required Cash-Flow
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27. How to finance your start-up ?
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28. Next Workshops
ICAB (Brussels)
Registration through www.westartup.eu (50 EUR VAT incl.)
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29. This presentation is available for free:
www.slideshare/FinanceCoach24.com
www.slideshare.net/xaviercorman
Group:
www.meetup.com/Finance-for-Startups
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