Cashflow Worksheet 1: Monies invested, future investment & running costs

Q1: What money have you spent on your business so far? Q2: How much more money do you think you will need to invest in your products before the sales income becomes regular and starts to grow steadily?? NB think only of one off costs here, see unshaded areas Q3: What do you expect to spend per annum on running costs? (the shaded section covers many of these)

Investment to date
Staff Salaries Telephone, Office Costs Internet & IT Marketing IP devt & management Prototyping & Tooling Research & Devt Technical Devt Production Set up Production Costs Staff Salaries

Future Costs
Telephone, Office Costs Internet & IT Marketing IP devt & management Prototyping & Tooling Research & Devt Technical Devt Production Set up

Production Costs

Rent & Rates

Professional Fees
Maintenance (buildings & equipment) Bank Charges

Branding Quality Assurance Storage

Rent & Rates

Professional Fees
Maintenance (buildings & equipment) Bank Charges

Branding Quality Assurance Storage

Sales costs

Insurance

Travel & Accomtion

Sales costs

Insurance

Travel & Accomtion

Distribution

Utilities

Training

Distribution

Utilities

Training

Q3: what is the total annual running cost of the business in year 1? (excluding those one off start up costs)

SAR ______

Q4: So, whats the total money in to the business so far and the total spent? Q5: And the total future investment?

Related questions:
Q6: which of the costs above are one off and which will you continue to incur as the business runs? Mark the regular costs with a coloured pen/sticky etc so that you know which they are when we do the monthly cashflow planning later. Q7: Have you included the cost of any resources that have been given to you free (we call this in kind) so far but that you should expect to pay for in the future? Do you need to plan to pay for it?

SAR ______

SAR ______

SAR ______

Cashflow Worksheet 2: Twelve month cashflow

Launch date:

Revenue:
Product/Income 1 Product/Income 2 Grant/Loan

PreLaunch

10

11

12

Total

Costs:
Production Costs Sales Costs Distribution Salaries Rent & Rates Insurance Utilities Telephone & Office Costs Internet & IT Travel & Accom Training Marketing Professional Fees Maintenance Bank Charges

Profit:
Q8: What is the total profit (loss) for the first 12 months of trading?

Cashflow Worksheet 3: Three year cashflow

Launch date:

Revenue: Costs:
Production Costs Sales Costs Distribution Salaries Rent & Rates

Pre-Launch

Year 1:

Year 2:

Year 3:

Total

Notes:

Insurance
Utilities Telephone & Office Costs Internet & IT Travel & Accom Training Marketing Professional fees R & D (incl. prototyping etc) Maintenance Bank Charges

Profit:
Just deal with the headlines here

Cashflow Worksheet 4: Keeping track of some key figures

From Worksheet 1: Income:
So, whats the total money in to the business so far and the total spent? And the total future investment? Total annual running costs SAR ______

From Worksheet 2: Costs:

SAR ______ ______

A B

What is the total income for the first 12 months?

SAR ______ ______

SAR ______ SAR ______

What are the total costs for the first SAR ______ 12 months (excluding pre-launch) (should be the same as Q3 answer, sheet 1)
What is the total profit (loss) for the first 12 months of trading? SAR ______

Do an optimistic cashflow, then do a pessimistic one. How bad can it get and yet the business still survives?

From Worksheet 3: Pre-L Yr1

Yr2

Yr3

______ Revenue ________________________________________________ Costs Profit ________________________________________________ ________________________________________________

Total 1 Total 2 (- Pre-L) (+ Pre-L)

A few useful calculations and some things to consider:

Rate of Return on Investment (ROI) = C/(A+B) = ______ Absolute ROI = C (A+B) = SAR ______ If you invested the pre-launch costs in the stock market what return would you accrue in 3 years? (5-30%a year depending on risk levels how much is this for your company? SAR ______ Opportunity cost = A+B+ stock market returns = SAR _____ Is the ROI greater than the opportunity cost? What is the month/year when the debt stops getting worse and you head toward a profit? How long until your profit has offset your start up costs i.e. break even point?