Finance Workshop 4-11-2009

Finance Workshop 4-11-2009 - 3. Understand and Define the...

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Financial Workshop – Writing a Business Plan Anthony Nassar – Venture Momentum Purpose of Financial Plan : “The Road Map” (this PowerPoint will be posted on the SVCE Website) 1. Asses feasibility of business 2. To understand benchmarks, how much to ask VCs for etc. 3. To be able to explain your business to investors 4. In order to go back and make adjustments – have an adaptive modeling tool. Funded or Bootstapped 1. Either way you need a financial plan Approach 1. Top down or bottom up a. Top down is taking the total revenue made and then working down b. Bottom up is working from every little detail and getting to your answer. 2. Create a Robust Framework a. Core Assumptions: revenue, staffing and expenses, capital b. Make a correct model in the first place so that when you go back to change things they change together. Formulas should be consistent. c. Adjust your financial data MONTHLY for 18 months
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Unformatted text preview: 3. Understand and Define the Revenue Model Drivers a. Market, Competition, Product/ Service Offering, Customer, Pricing, Terms, Sales Cycle, Customer Acquisition, Selling Resources, Churn, Data Flow) b. Make Graphs for all the above so that the investors can easily understand 4. Gather other data a. Pricing, salaries, consultants, cost of space/ sqft, servers, operating expenses, etc) 5. Build a Realistic Product Plan. 6. Build a Credible Revenue Model 7. Expenses, Headcount, Space and Equipment a. 4 departments of expenses: Revenues, R&D, S&M, G&A b. Model the headcount when possible 8. 3 financial Statements a. Create Income Statement by department b. Create Income Statement by Account Category c. Build Balance Sheet and Statement of Cash Flows 9. Key Metrics (Check the PP online 10 key metrics) a. Have them all in one place...
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This note was uploaded on 09/08/2010 for the course BUS 173C at San Jose State University .

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Finance Workshop 4-11-2009 - 3. Understand and Define the...

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