You're no doubt looking for money and turning to resources to help you with your cash flow projections. But if you really want to do them up right, and be able to defend and get excited about the numbers beyond the spreadsheet, you'll want to follow this play-by-play game plan to nailing your cash flows. Don't forget to check out our website for online Playbook Drills and Bootcamps on this very topic! www.nailthenumbers.com

1. NailTheNumbers.com
HOW TO: SKETCH OUT YOUR STARTUP COSTS
AND CASH FLO PROJECTIONS
©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign
Playbook No2
Released: February 24, 2015

2. LEGAL STUFF, JUST BECAUSE…
This is a summary of the Terms of Engagement for Nail the Numbers Playbooks.
Disclaimer: This summary is simply a handy reference for understanding the full terms. Our full policy can be found at
www.nailthenumbers.com.
Our goal is to:
 Engage and enlighten you [Startups] on the topic of money and finance.
 Have a lasting impact on your success and survivability.
 In the long run, spark money momentum and mastery among future generations of aspiring entrepreneurs.
Either as a Playbook Pro or a Startup, you are welcome and encouraged to review, use and/or contribute to Nail The Numbers Playbooks, with
the understanding that:
 You License Freely Your Contributions.
 The content of the Playbooks is for informational purposes only and does not constitute professional advice.
ALL GOOD? READ ON>>>

3. THE PLAYBOOK PROS
Taunya Woods Richardson | Campaign Creator and Chair, Let’s Talk
Money @TTaunya // nailthenumbers.com // @NailtheNumbers
Taunya’s reputation as the Startup’s Money Maven is built on her ability
to dive into the uncomfortable topic of finance with tremendous
transparency, empathy and humour. She is a thought leader, solution
architect and financial literacy champion, with the rare ability to both
motivate entrepreneurs and equip them with actionable change
strategies to better control their finances and outcomes.
25 Years Experience ▫ Social Entrepreneur ▫ Investor ▫ Fund Manager

4. “DRAWING IS THE ROOT OF ALL
KNOWLEDGE.” MICHELANGELO
I’ve come to realize the root of meaningful cash flow projections don’t start with spreadsheets, but
rather by first physically sketching out your ideas, assumptions and estimates.
Taunya Woods Richardson // @TTaunya
Campaign Creator and Chair, Let’s Talk Money @NailtheNumbers
SO, LET’S GET SKETCHING>>>

5. WHICH BIZ MADE ME THE MOST $?
BIZ A
Catering
1 Client
Billed by Project
$15,000 per Project
BIZ B
Consulting
7 Clients
Billed Hourly
$125 per Hour
BIZ C
Business Support
Services
2,500 Clients
Billed by Board
$1,500 per Board
$540,000 $210,000 $3,250,000
60 hours/month/$100
$72,000 / Draw +
$220,000 / Profit +
$100,000 / Sale
140 hours/month/$125
$210,000 / Draw
$0 / Profit
$0 / Sale
240 hours/month/$21
$60,000 / Draw
$0 / Profit
$0 / Sale

6. WHAT YOU LEARN FROM CASH FLOWS*
 *AKA… Pro Formas or Projections // Your budget for the business
 If your concept is financially viable
 Which of your products/services are most profitable
 The starting point for your pricing strategy
 The business’s break-even point
 How much working capital you’ll require
 The seasonality of your business
 When to expand the business / hire employees
 Where you’re making/loosing money

7. STEP 1: START WITH THE END IN MIND
 When do you plan to exit
 How do you plan to exit
 For how much
 To whom
©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign
“Raise twice what you need and plan on
it taking twice as long.”
Sam Hogg, Venture Partner
Open Prairies Ventures
“Fundraising sucks and it
never really ends until the
day you sell.”
@SamHoggVC #FinLitBootcamps

8. STEP 2: MAP YOUR JOURNEY
Starting with the end in mind, what milestones will get
you to your final destination?
 Product Development
 Growth (team, geography, infrastructure)
 Capital Requirements
©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign
"You can eat an
elephant – just
one bite at a
time."
-Unknown

9. STEP 3: SKETCH OUT YOUR START UP
COSTS
 Space / Leaseholds
 Business Set Up
 Legal / Accountant Fees
 Product Development
 Software / Hardware
 Equipment and Supplies
 Inventory
 Employee Recruitment
and Training
 Working Capital
©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign
TIPS
Get estimates /purchase orders
Be specific
Include taxes
Don’t forget processing and shipping
Don’t bank on friends and family – Budget
Track and record your expenses
Know why you need the money
@TTaunya @NailtheNumbers #Let’sTalkMoney

10. STEP 4: BREAK OUT YOUR REVENUE
STREAMS*
How will your business make money from its products and services?
 *AKA… Profit Centres
 Products / Fee for Service
 Community Access
 Subscriptions
 Advertising
 Commission / Transaction Fee
 Licensing
©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign
Whatever you do… don’t lump all
your revenue streams into one
line item labeled “Sales”!
@TTaunya @NailtheNumbers

11. STEP 5: CALCULATE YOUR COGS*
 *AKA…Cost of Goods Sold
 Materials
 Direct Labour
 Transaction Fees
 Shipping / Transportation
 Project Delays
©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign
“My single biggest
mistake with my first
business was with pricing.
I didn’t take into account
all the hidden costs.”
Sarah Shaw, CEO Entreprenette

12. STEP 6: SET A PRICE-POINT
 Cost of Goods Sold
 Pain Killer or Bandaid
 Personal Knowledge
 Competition
 Industry Statistics
 Market Research
 Trials and Testing
 Operating
©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign
“I though you just sort of doubled
everything but that’s not correct.”
Sarah Shaw, CEO Entreprenette

13. STEP 7: DETERMINE THE EBB AND
FLOW OF SALES
 How many units will you sell and when?
 What’s the seasonality of your product/service?
 When will revenues be received?
 What’s your capacity?
©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

14. STEP 8: FACTOR IN MONTHLY EXPENSES
 Salaries, Wages and Benefits
 Employee Development / Welfare
 Professional and Consulting Services
 Advertising and Promotion
 Space and Operating
 Bank Fees
 Insurance
 Travel and Vehicles
 Fundraising Activities
 Loan Repayment and Interest
 Income Tax
©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign
Myth: You can rely on social media to build virality and attract customers for free.
Reality: It’s NOT free. It will take unbelievable amounts of time. Bank on 6 months to
a year before you’ve got even slight momentum.
Drew Williams, Author of Feed the Startup Beast

15. STEP 9: WORKING CAPITAL* NEEDS
 *AKA… your Runway
 Income – Expenses = Net Profit
 At what point does your business turn a profit?
 How much money do you need to keep you flush
until you reach that point?
©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign
“It doesn’t take a CPA to
figure out the longer you
take to launch, the longer
you go without money
coming in.”
Drew Williams, Author of Feed the
Startup Beast

16. STEP 10: CIRCLE BACK
©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign
 Add working capital needs to Start Up Costs
 Add loans/equity to the Income in your Cash Flow
 Record your Start Up Expenses to Expenses in your Cash Flow
 Build year 2,3,4… of Cash Flow projections taking into account your
milestones and what investors are looking for

17. NOW WHAT…
Do you have questions? Want to connect with the Pros, visit us at SpreeCast for
a list of upcoming Playbook Drills, including HOW TO SKETCH OUT YOUR
STARTUP COSTS AND CASH FLO PROJECTIONS.
Looking to get it done and make it happen? Book a Bootcamp. Action-packed and
highly-interactive, you’ll work hard and sweating buckets, but you’ll take great pride in
the end result. LET’S TALK CASH FLO
PROJECTIONS + STARTUP COSTS IN
CITIES IN ACROSS CANADA
CHECK OUT UPCOMING BOOTCAMPS
CHECK OUT UPCOMING DRILLS
Keep me posted @TTaunya or taunya@letstalkmoney(dot)biz