INSTRUCTIONS

LOOM VIDEO

Watch the following video.

URL: https://www.loom.com/share/8c4aa19ecd29462f93f3f6c6b7d1e2ae
Password: financerocks2021

Rules

I understand that you can get stuck, this is not supposed to be easy.
Please do not hesitate to ask any questions. I am here to help.
For commonly asked questions, please refer to the FAQ below.

Client

Name: John Doe

Professional: Farrier
Company: Farrier Services Incorporated
Aspired Location: Cochrane, Alberta, Canada

Deliverables

1. Perform research on NAICS: 115210

a. https://www.ic.gc.ca/app/sme-pme/bnchmrkngtl/rprt-flw.pub?
execution=e2s4
b. How?
i. See the FAQ below with more details
c. Use industry data to benchmark your Income Statement
2. Construct the Income Statement
3. Write a Business Plan
a. Executive Summary
b. Management Experience
c. Financial Projections

Timeframe

Please complete in 72 hours (3 days) from our agreed starting date. This project should take
3-4 hours to complete. Please manage your time effectively to ensure you’ve worked on all
3 areas of the deliverable.
Format
1. Excel File
2. Word Document

Frequently Asked Questions: FAQ

Data Pull

Q: How do I download the required information and where do I use it effectively for my
financial projections?

Step 1: go to this link: https://www.ic.gc.ca/app/sme-pme/bnchmrkngtl/rprt-flw.pub?

execution=e2s4
Step 2: customize the data you need

Step 3: Create report

Step 4: Export to Excel file

Step 5: Open the downloaded Excel file (from your local drive) and copy its contents
Step 6: Paste the copied contents into the necessary tabs and cells in the John Doe project
Financial Statement Model
Step 7: Repeat for thousands of dollars value and for Alberta data

Excel Sheet

Q: Can I edit the formulas of the spreadsheet, or do I need to use the stick to the template
provided to me?

A: We leave this entirely up to you. Feel free to make your assessment.

Q: Can I create a new spreadsheet, or do I need to use the spreadsheet provided?

A: We leave this entirely up to you. Feel free to make your assessment.

Q: From what year onwards should I make financial projections?

A: Please use the actual year in which you’re taking the project.

Q: Why is the financial model empty?

A: Because we want to see how you would prepare financial projections. ☺

Financial Projections

Q: How can I prepare the revenue projections?

A: Revenue projections need to be based on assumptions that you can drive from the
information provided to you. For the addressable market you can find more information in
the "market research" tab. You can calculate the # of horses the service they need (i.e.
volume price). Alternatively you can assess revenue by looking at the average revenue per
business. Here, you can benchmark revenue levels from the data you extracted from the link
we have provided to you (NAICS data pulls;
https://www.ic.gc.ca/app/sme-pme/bnchmrkngtl/rprt-flw.pub?execution=e2s4 )

Q: Can I use my own format of the P&L statement?

Absolutely you can!
Just ensure that you use formulas instead of hard coded figures. Ensure to outline your
reasoning as much as possible.

Q: Besides the revenue projections, how can I prepare the income statement?

A: I recommend looking at the sample provided to you. Hint, please have a look at the cost
structure of an average business in the field (NAICS data pull).
Q: What if my projections generate a negative net income?

A: If you have sounds reasoning why that is the case, than we would love to hear it. In other
words, we leave this entirely up to on how you want to approach this matter.

Q: What is the growth rate of the industry?

A: We leave the assessment of the growth rate up to you. Hint, please have a look at the
market research data provided in the excel template.

Q: Am I allowed to search other information, besides the data provided, to complete the
task?

A: Yes, you can find and research information that supports your assessment in completing
the project. We leave this entirely up to you. However, if you use other external data
sources, we encourage you to clearly document and source it in the deliverables.