The document discusses the importance of cash flow planning and key performance indicators (KPIs) for growing businesses, providing examples of long-term and short-term cash flow forecasts with metrics and financial projections that investors look for to demonstrate a company's ability to achieve its financial goals. It emphasizes having a detailed long-term cash flow projection and a 13-week short-term cash flow forecast with weekly variance analysis to manage liquidity and spot trends.

1. Managing Cash Flow and KPI’s for your
Growing Business

2. 1 Cash Planning
2 KPI’s and Managing Growth
3 Metrics to Assist with Financing
CONTENT
overview
1
What Metrics are Investors
Looking for?
Long and Short term
How to Choose KPI’s

3. Why do we forecast &
manage cash?
2

4. Paying Bills with?
3
Gross Profit
Sales less Costs of Sales
Net Income
Gross Profit less Operating
Expenses
EBITDA
Earnings Before Interest
Taxes, Depreciation &
Amortization
CASH IS KING

5. Cash Forecasting
Short Term vs Long Term
4“Plans are Useless, but planning is essential” Dwight D
Long Term
Think:
Basketball Coach Game Plan
Watch film
Study w staff
Talk to team
Set game plan
13 Week
Think:
In Game Adjustments
Changing Defense
Injury
Time remaining
Small lead
0
2
4
6
8
10
Leanest
Period
Week/Month

6. 5
CAPACITY
PLANNING
EARLY
WARNING
SYSTEM
INVESTOR
REQUIREMENT
Most
importantly
LACK OF
PLANNING
Most companies forecast LT
profitability but not working
capital and cash
WHY DO IT?
LONG TERM Cash Forecast
Game Planning
Know LT Cash
Timing Needs

7. Isn’t my
sales
projection
enough for
Long Term
cash?
6

8. 7
Your Long Term Forecast is Your Cash Flow Map

9. Detailed Sales Projections
8
Detailed Balance Sheet
Detailed Expense Projections
By month for 3 to 5 years
Convince Investors you can do it
Detailed Cash Flows

10. 9
CONFIDENCE EARLY
WARNING
SYSTEM
INVESTOR
REQUIREMENT
Most
importantlyLACK OF
PLANNING
Even fewer have a proper ST
cash forecast
WHY DO IT?
SHORT TERM Cash Forecast
In Game Planning & Adjusting
SPOTTING
BAD TRENDS

11. 13 Week Cash Flow Forecast
Crucial Elements
10
A powerful management tool, the 13-Week Cash Flow projection, refreshed weekly, should be used by all companies, both
healthy and distressed to assist with managing and anticipating short-term liquidity needs.
 13 Weeks
Maintains accuracy, but long
enough to react
 Weekly
Avoids “intra-month” surprises
 Beginning vs Ending Cash
Reconciles weekly
To receive a 5 page whitepaper discussing the mechanics, send an email to info@advancedcfo.com with “13Week” in the subject line.
 Liquidity
tracks available liquidity
weekly
 Major Categories
naturally grouped, summarized
 Specific Unusual items
 Variance Analysis
sufficient explanations
 Weekly Accountability
management tool
 Graph
Simple cash & liquidity trending

12. 1 + Cash In
- Cash Out
= Operating Cash Flow
2 Beginning Cash
+/- Operating Cash Flow
+/- Loan Activity
= Ending Cash
3 Ending Cash
+ Available Borrowings
= Total Liquidity
13 Week Cash Forecast Elements
overview
11

13. 13 Week Cash Forecast
12
OPERATING CASH FLOW
+ Inflows
- Outflows
Operating Cash Flow
NET CASH BALANCE
+ Beginning BANK Cash Balance
+/- Operating Cash Flow
+/- Loan Activity
Ending BANK Cash Balance
- Outstanding Checks
Ending BOOK Cash Balance
LIQUIDITY
Ending Cash Balance
Less: Outstanding Checks
Net Cash
Total Revolver Availability
Less: Revolver Usage
Available Revolver
Net Liquidity
13 Column Forecast - 1 per Week TOTAL

14. Forecasted Liquidity
13
Bootcamp, Inc.
13 Week Cash Flow Forecast - Liquidity Chart
Week 1 2 3 4 5 6 7 8 9 10 11 12 13
Cash 202 141 184 174 177 66 163 113 88 (145) (170) (89) 1
Available 125 125 125 125 125 125 125 125 125 125 125 125 125
Total 327 266 309 299 302 191 288 238 213 (20) (45) 36 126
1 2 3 4 5 6 7 8 9 10 11 12 13
Available 125 125 125 125 125 125 125 125 125 125 125 125 125
Cash 202 141 184 174 177 66 163 113 88 (145) (170) (89) 1
$(200)
$(100)
$-
$100
$200
$300
$400
Company Liquidity

15. Weekly Variance Analysis
14
Bootcamp, Inc.
13 Week Cash Flow Forecast - Prior Week Variance Analysis
OPERATING CASH FLOW Forecast Actual Variance
Explanations
Better / (Worse)
CASH INFLOWS
AR collections 50,000 55,000 5,000 XYZ co neglected to apply $5K credit
Credit Card Collections 25,000 25,000 -
Total Cash Inflows 75,000 80,000 5,000
CASH OUTFLOWS
Marketing (8,000) (20,000) (12,000) Missing invoice for ABC part showed up…needed to be paid immediately
Payroll Expenses - (5,000) (5,000) Erroneous bank charge, will be corrected next week
Professional Fees (4,500) (4,500) -
Rent (11,000) (10,500) 500 We overestimated this bill
Taxes & Licenses - -
Other - Capital Expenditures - -
Other - Credit Cards - -
Total Cash Outflows (23,500) (40,000) (16,500)
-
Operating Cash Flow 51,500 40,000 (11,500)
-
NET CASH BALANCE
Beginning
Bank
Ending Bank
Balance
Weekly
Change Explanations
NET CASH BALANCE
Beginning BANK Cash Balance 150,000 150,000 -
Net Cash Provided (Used) 51,500 40,000 (11,500)
Revolver Draw / (Paydown) -
Ending BANK Cash Balance 201,500 190,000 (11,500)
Outstanding Checks (25,000) (25,000) -
Ending BOOK Cash Balance 176,500 165,000 (11,500)
LIQUIDITY
Beginning
Bank
Ending Bank
Balance
Weekly
Change Explanations
Ending Cash Balance 201,500 190,000 (11,500)
Less: Outstanding Checks (25,000) (25,000) -
Net Cash 176,500 165,000 (11,500)
Total Revolver Availability 100,000 100,000 -
Less Revolver Usage 25,000 25,000 -
Available Revolver 75,000 75,000 -
Total Liquidity 251,500 240,000 (11,500)

16. 13 Week Cash Forecast - EXAMPLE
15
Bootcamp, Inc.
13 Week Cash Flow Forecast
OPERATING CASH FLOW
CASH INFLOWS
AR collections
Credit Card Collections
Total Cash Inflows
CASH OUTFLOWS
Marketing
Payroll Expenses
Professional Fees
Rent
Taxes & Licenses
Other - Capital Expenditures
Other - Credit Cards
Total Cash Outflows
Operating Cash Flow
NET CASH BALANCE
Debt Payments
Total Other
Net Cash Provided (Used)
NET CASH BALANCE
Beginning BANK Cash Balance
Net Cash Provided (Used)
Revolver Draw / (Paydown)
Ending BANK Cash Balance
Outstanding Checks
Ending BOOK Cash Balance
LIQUIDITY
Ending Cash Balance
Less: Outstanding Checks
Net Cash
Total Revolver Availability
Less: Revolver Usage (Beg of
Week)
Available Revolver
Net Liquidity
Current
Week Wk 2 Wk 3
03/30/15 04/06/15 04/13/15
50,000$ 50,000$ 50,000$
25,000$ 50,000$ 75,000$
75,000 100,000 125,000
(8,000) - (7,000)
- (160,250) -
(4,500) - (35,050)
(11,000) - -
- - -
- - -
- - (40,000)
(23,500) (160,250) (82,050)
51,500$ (60,250)$ 42,950$
100 - -
100 - -
51,600$ (60,250)$ 42,950$
150,000$ 201,600$ 141,350$
51,600 (60,250) 42,950
201,600 141,350 184,300
(25,000) (25,000) (25,000)
176,600$ 116,350$ 159,300$
Prior Wk Wk 1 Wk 2 Wk 3
03/23/15 03/30/15 04/06/15 04/13/15
201,600$ 141,350$ 184,300$
(25,000) (25,000) (25,000)
-$ 176,600$ 116,350$ 159,300$
100,000$ 100,000$ 100,000$ 100,000$
25,000 25,000 25,000 25,000
125,000$ 125,000$ 125,000$ 125,000$
$125,000 $301,600 $241,350 $284,300
Projected Week Beginning
Wk 13
>>>>>>>>>>>>> 06/22/15
50,000$ $450,000
200,000$ $950,000
250,000 1,400,000
- (45,000)
>>>>>>>>>>>> (160,250) (961,500)
- (89,650)
- (33,000)
- -
- (100)
- (420,000)
(160,250) (1,549,250)
>>>>>>>>>>>> 89,750$ (149,250)$
- 400
- 400
89,750$ (148,850)$
(88,600)$ 150,000$
89,750 (148,850)
-- --
1,150 1,150
(25,000) (25,000)
>>>>>>>>>>>> (23,850)$ (23,850)$
Wk 13 13 Week Total
06/22/15
1,150$ 1,150$
(25,000) (25,000)$
(23,850)$ (23,850)$
100,000$ 100,000$
25,000 25,000
125,000$ 125,000$
>>>>>>>>>>>> $101,150 $101,150
Projected Week Beginning
13 Week
Total

17. What is a KPI?
Key Performance Indicator
Different for each company
Some are the same

18. What is a KPI?
• Cash measured daily
• Accounts receivable (DSO)
• Accounts payable (DSO)
• Inventory (Turns)

19. What is a KPI?
• Sales
–By day
–By sales rep
–By geography
–By whatever you need

20. What is a KPI?

21. What measures are investors looking for?
Is there something that all
businesses should think about?

22. What measures are investors looking for?

23. Paying Bills with?
22
Gross Profit
Sales less Costs of Sales
Net Income
Gross Profit less Operating
Expenses
EBITDA
Earnings Before Interest
Taxes, Depreciation &
Amortization
CASH IS KING

24. Where do I Start?
Revenue
Cost of Goods Sold or Cost of Sales
Gross Profit / Gross Margin
Operating Expenses
Operating Income or EBITDA
Net Income

25. Most Companies?
• Annual Sales Growth – ARR – MRR
• Gross Profit Margin
• EBITDA Margin
• Net Income Margin
• Burn Rate
• Sales per Headcount

26. Summary Slides Tell the Story
STATEMENT OF OPERATIONS ($000,s) 2015 2016 2017 2018 2019
Revenue 1,677.2$ 6,812.9$ 15,788.3$ 29,886.1$ 46,654.4$
Cost of Sales 362.8 1,393.3 3,378.9 6,527.8 10,213.6
Gross Profit 1,314.4 5,419.6 12,409.4 23,358.3 36,440.9
Gross Profit Margin 78.4% 79.5% 78.6% 78.2% 78.1%
Operating Expenses 1,349.2 2,459.6 5,219.9 7,382.2 10,328.5
EBITDA (34.8) 2,960.0 7,189.4 15,976.2 26,112.4
EBITDA Margin -2% 43% 46% 53% 56%
Net Income (Loss) 158.5 1,801.0 4,310.9 9,589.8 15,700.9
Net Margin 9% 26% 27% 32% 34%
Sample Company, Inc.
Summary Financial Projections ($000's)

27. Graphs Tell the Story Better

28. The Devil
is in the
Details

29. 28
Make sure you have a
believable map that shows how
you are going to accomplish
your financial goals and solid
KPI’s that demonstrate you
know how to run your business
If you want investors to put
money into your
company…they have to believe
you can do what you say you
can do
&
Conclusion
Money & Maps

30. 23rd of March, 2016
Thank you for being here today
Presenter:
JB Henriksen
Partner, Advanced CFO Solutions