Presentation from the webinar held on October 7h, organized by Innovation Fund Serbia and Science Technology Park Čačak, supported by Swiss EP.

1. CAPITAL BUDGETING
&
FINANCIAL MODELLING
7 OCT 2020
KAMEN BANKOVSKI

2. STARTUPS FAIL
WITHIN THEIR FIRST 5 YEARS DUE TO
POOR MANAGEMENT OF FINANCE
95%
(SOURCE: https://www.statisticbrain.com/startup-failure-by-industry/)
FINANCE

3. WHAT IS
?
FINANCE

4. FINANCE
?
THE SCIENCE AND ART
OF MANAGING MONEY

5. |A TIME TRAVEL MACHINE
PAST PRESENT FUTURE
KEY INSIGHTS FROM
PAST DATA ANALYSIS
& BENCHMARKING
GAUGE OPERATIONAL
PERFORMANCE
THROUGH KEY METRICS
TACTICS AND PLAN
FOR FUTURE
MILESTONES
FINANCE

6. THE
TODAY’S AGENDA:
FUTURE

7. THE
PREDICTING
FUTURE
REALISTIC ASSUMPTIONS OF THE KEY DRIVERS OF
A COMPANY, BASED ON RESERACH, DATA,
AND THE BUSINESS FUNDAMENTALS OF THE
COMPANY

8. IMPORTANCE
UNDERASTAND KEY
DRIVERS & BUSINESS
MODEL
ATTRACT & CULTIVATE
PARTNERS &
INVESTORS
SET & CHASE GOALS
& PLAN FOR THE
FUTURE

9. NOT ROCKET SCIENCE!
WHAT YOU’VE DONE ALREADY IS MUCH HARDER!
MANY RESOURCES EXISTS ONLINE, USE THEM FOR IDEAS
CREATE YOUR OWN MODELS, IT’S MORE USEFUL

10. ABOUT KAMEN
PRINCIPAL | INVESTMENT MANAGER
VITOSHA VENTURE PARTNERS (VC FIRM)
DEPARTMENT HEAD | ADVISORY BOARD MEMBER
INDEAVR (SOFTWARE COMPANY)
MENTOR | ADVISOR
MULTIPLE STARTUPS & SMES IN BG
MBA | BA
NOT AN ACCOUNTANT!

11. THE THREE FINANCIAL STAMENTS
11
INCOME STATEMENT
CASH FLOW STATEMENT
BALANCE SHEET

12. FINANCIAL STATEMENTS OVERVIEW
• CONSIDERED IN CONJUNCTION
• PERFORMANCE AND PROFITABILITY OVER A PERIOD
• CASH FLOW MANAGEMENT AND HEALTH
• SNAPSHOT OF CURRENT CAPITAL STRUCTURE, ASSETS AND
NET WORTH
LOGIC AND FLOW

13. NET INCOME (OP – (IE + IT))
REVENUE
COST OF SALES
GROSS PROFIT (R – C)
OPERATING EXPENSES
OPERATING PROFIT (EBIT) (GP – OE)
INTEREST EXPENSE
INCOME TAX
INCOME
STATEMENT

14. • AD REVENUE
• PRODUCT SALES
• SUBSCRIPTIONS
REVENUE
COST OF SALES
• RAW MATERIALS
• DIRECT LABOR
GROSS PROFIT (R – C)
INCOME STATEMENT

15. BASED ON YOUR BUSINESS MODEL
I.E.
HOW DO YOU CREATE AND EXTRACT VALUE TO
AND FROM CUSTOMERS
REVENUE & COSTS

16. Demo...

17. NET INCOME (OP – (IE + IT))
REVENUE
COST OF SALES
GROSS PROFIT (R – C)
OPERATING EXPENSES
OPERATING PROFIT (EBIT) (GP – OE)
INTEREST EXPENSE
INCOME TAX
INCOME
STATEMENT

18. 18
OPERATING EXPENSES
• RESEARCH AND DEVELOPMENT
• MARKETING | SALES | ADMINISTRATIVE
• DEPRECIATION | AMORTIZATION
OPERATING PROFIT (EBIT) (GP – OE)
INTEREST EXPENSE
INCOME TAX
NET INCOME (OP – (IE + IT))

19. Demo...

20. NET INCOME (OP – (IE + IT))
REVENUE
COST OF SALES
GROSS PROFIT (R – C)
OPERATING EXPENSES
OPERATING PROFIT (EBIT) (GP – OE)
INTEREST EXPENSE
INCOME TAX
INCOME
STATEMENT

21. CASH FLOW STATEMENT
21
NET INCOME
OPERATING ACTIVITIES DEPRECIATION & AMORTIZATION
CHANGES IN ACCOUNTS RECEIVABLE
NET CASH FROM OPERATIONS
INVESTMENTS IN P & E
INVESTMENTS IN SECURITIES
NET CASH FROM INVESTING ACTIVITES
ISSUANCE / REPAYMENT OF DEBT | EQUITY
PAYMENT OF DIVIDENDS
NET CASH FROM FINANCING
INVESTING ACTIVITIES
FINANCING ACTIVITIES
NET INCREASE | DECREASE IN CASH
CHANGES IN ACCOUNTS PAYABLE

22. CASH FLOW STATEMENT
22
NET INCREASE | DECREASE IN CASH
CLOSING CASH BALANCE
OPENING CASH BALANCE

23. Demo...

24. BALANCE SHEET
24
ASSETS LIABILITIES
EQUITY
Bank Loan
Shareholder
Capital

25. BALANCE SHEET
25
ASSETS LIABILITIES
EQUITY
CURRENT ASSETS
CASH
ACCOUNTS RECEIVABLE
INVENTORY
CURRENT LIABILITIES
ACCOUNTS PAYABLE
LONG-TERM LIABILITIES
BANK LOAN
OWNERS EQUITY
CAPITAL
RETAINED EARNINGS
LONG-TERM ASSETS
LAND & BUILDINGS
EQUIPMENT
(DEPRECIATION)

26. Demo...

27. FINANCIAL STATEMENTS
27
AMONG THE
MOST IMPORTANT
DATASETS YOU HAVE

28. QUESTIONS?

29. THANK YOU!

30. KAMEN BANKOVSKI
KAMEN.BANKOVSKI@GMAIL.COM