1. AB C Company, Inc.
Es timate d State me nt of Ope rations
For The Years Ended December 31, 2010. 2011, 2012, and 2013
Dollars (000's omitte d) Pe rce nt (%) of Re ve nue
2010 2011 2012 2013 2010 2011 2012 2013
Re ve nue :
Installation Revenue $ 450 $ 3,825 $ 21,038 $ 73,633 77.1% 84.3% 82.3% 80.6%
Non-Installation Revenue
Service Fees $ 89 $ 623 $ 4,361 $ 17,444 15.2% 13.7% 17.1% 19.1%
Other Non-Installation Revenue $ 45 $ 90 $ 158 $ 237 7.7% 2.0% 0.6% 0.3%
Total Revenue: $ 584 $ 4,538 $ 25,557 $ 91,314 100.0% 100.0% 100.0% 100.0%
Dire ct Cos ts:
Installation Costs $ 338 $ 2,678 $ 12,623 $ 36,817 57.9% 59.0% 49.4% 40.3%
Non-Installation Costs $ 38 $ 193 $ 1,175 $ 4,420 6.5% 4.3% 4.6% 4.8%
Direct Costs: $ 376 $ 2,871 $ 13,798 $ 41,237 64.4% 63.3% 54.0% 45.2%
Othe r Cos t of Se rvice s $ 88 $ 567 $ 2,556 $ 6,849 15.1% 12.5% 10.0% 7.5%
Gros s M argin ($) $ 120 $ 1,100 $ 9,203 $ 43,228 20.5% 24.2% 36.0% 47.3%
Gross Margin (%) 20.5% 24.2% 36.0% 47.3%
Ope rating Expe nse s:
Sales $ 292 $ 1,588 $ 6,389 $ 18,263 50.0% 35.0% 25.0% 20.0%
Marketing $ 263 $ 1,361 $ 5,111 $ 13,697 45.0% 30.0% 20.0% 15.0%
Research & Development $ 175 $ 998 $ 2,811 $ 8,218 30.0% 22.0% 11.0% 9.0%
General & Administration $ 44 $ 295 $ 1,533 $ 4,566 7.5% 6.5% 6.0% 5.0%
Total Operating Expenses: $ 774 $ 4,242 $ 15,844 $ 44,744 132.5% 93.5% 62.0% 49.0%
EBITDA $ (654) $ (3,142) $ (6,641) $ (1,516) -112.0% -69.2% -26.0% -1.7%
Othe r (Re ve nue ) & Expe ns e s :
Interest $ 80 $ 156 $ 32 $ 80 13.7% 3.4% 0.1% 0.1%
Taxes $ 8 $ 9 $ 11 $ 15 1.4% 0.2% 0.0% 0.0%
Depreciation & Amortization $ 13 $ 67 $ 268 $ 874 2.2% 1.5% 1.0% 1.0%
Total Other (Revenue) & Expenses
$ 101 $ 232 $ 311 $ 969 17.3% 5.1% 1.2% 1.1%
Ne t Income (Loss ) $ (755) $ (3,374) $ (6,952) $ (2,485) -129.3% -74.3% -27.2% -2.7%
State me nt Note s :
Re ve nue
Market 1 $ 43 $ 2,320 $ 12,205 $ 46,232 7.4% 51.1% 47.8% 50.6%
Market 2 $ 230 $ 1,201 $ 7,652 $ 26,450 39.4% 26.5% 29.9% 29.0%
Market 3 $ 256 $ 932 $ 3,250 $ 12,658 43.8% 20.5% 12.7% 13.9%
Market 4 $ 55 $ 85 $ 2,450 $ 5,974 9.4% 1.9% 9.6% 6.5%
Total Re ve nue $ 584 $ 4,538 $ 25,557 $ 91,314
He adcount
Existing $ 13.00 $ 18.00 $ 61.00 $ 298.00
New Hires $ 5.00 $ 43.00 $ 237.00 $ 830.00
Total Headcount $ 18.00 $ 61.00 $ 298.00 $ 1,128.00
Capital Expe nditure s $ 126.00 $ 424.00 $ 1,584.00 $ 4,474.00
COPYRIGHT © 2010
COPYRIGHT © 2011

2. Rule #1:
If you cannot read the
financial statement from two
feet away the font is
too small
(i.e. there are too many details)
COPYRIGHT © 2011

3. ABC Company, Inc.
Projected Statement of Operations
For The Years Ended December 31, 2010. 2011, 2012, and 2013
Dollars (000's omitted)
2010 2011 2012 2013
Revenue:
Market 1 $ 43.00 $ 2,320.00 $ 12,205.00 $ 46,232.00
Market 2 $ 230.00 $ 1,201.00 $ 7,652.00 $ 26,450.00
Market 3 $ 256.00 $ 932.00 $ 3,250.00 $ 12,658.00
Market 4 $ 55.00 $ 85.00 $ 2,450.00 $ 5,974.00
Total Revenue $ 584.00 $ 4,538.00 $ 25,557.00 $ 91,314.00
Gross Margin ($) $ 120.00 $ 1,100.00 $ 9,203.00 $ 43,228.00
Gross Margin (%) 20.5% 24.2% 36.0% 47.3%
Operating Expenses:
Sales & Marketing $ 555.00 $ 2,949.00 $ 11,500.00 $ 31,960.00
Research & Development $ 175.00 $ 998.00 $ 2,811.00 $ 8,218.00
General & Administration $ 44.00 $ 295.00 $ 1,533.00 $ 4,566.00
Total Operating Expenses: $ 774.00 $ 4,242.00 $ 15,844.00 $ 44,744.00
Other Expense/(Income) $ 101.00 $ 232.00 $ 311.00 $ 969.00
Net Income (Loss) $ (755.00) $ (3,374.00) $ (6,952.00) $ (2,485.00)
Stateme nt Notes:
Headcount
Existing $ 13.00 $ 18.00 $ 61.00 $ 298.00
New Hires $ 5.00 $ 43.00 $ 237.00 $ 830.00
Total Headcount $ 18.00 $ 61.00 $ 298.00 $ 1,128.00
Capital Expenditures $ 126.00 $ 424.00 $ 1,584.00 $ 4,474.00
COPYRIGHT © 2011

4. Rule #2:
Pennies are only for
accounting auditors
COPYRIGHT © 2011

5. “Before you can sprint you
must learn how to crawl”
Usain Bolt
(Olympic Gold Medalist 100 meters)
COPYRIGHT © 2011

6. ABC Company, Inc.
Estimate d State ment of Operations
For The Years Ended December 31, 2010. 2011, 2012, and 2013
Dollars (000's omitte d)
2010 2011 2012 2013
Revenue:
Market 1 $ 43 $ 2,320 $ 12,205 $ 46,232
Market 2 $ 230 $ 1,201 $ 7,652 $ 26,450
Market 3 $ 256 $ 932 $ 3,250 $ 12,658
Market 4 $ 55 $ 85 $ 2,450 $ 5,974
Total Reve nue $ 584 $ 4,538 $ 25,557 $ 91,314
Gross Margin ($) $ 120 $ 1,100 $ 9,203 $ 43,228
Gross Margin (%) 20.5% 24.2% 36.0% 47.3%
Ope rating Expense s:
Sales & Marketing $ 555 $ 2,949 $ 11,500 $ 31,960
Research & Development $ 175 $ 998 $ 2,811 $ 8,218
General & Administration $ 44 $ 295 $ 1,533 $ 4,566
Total Operating Expenses: $ 774 $ 4,242 $ 15,844 $ 44,744
Other Expense/(Income) $ 101 $ 232 $ 311 $ 969
Net Income (Loss) $ (755) $ (3,374) $ (6,952) $ (2,485)
Statement Notes:
Headcount
Existing $ 13 $ 18 $ 61 $ 298
New Hires $ 5 $ 43 $ 237 $ 830
Total Headcount $ 18 $ 61 $ 298 $ 1,128
Capital Expe nditure s $ 126 $ 424 $ 1,584 $ 4,474
COPYRIGHT © 2011

7. Rule #3:
Use $ (dollar signs) on the
first and last row only.
Unless, of course, you are
mixing rows of $ and %, etc.
COPYRIGHT © 2011

8. FORMAT CREDIBILITY
The presentation format does
not interfere with (or create
noise for) the reader
COPYRIGHT © 2011

9. ABC Company, Inc.
Projected Statement of Operations
For The Years Ended December 31, 2010 through 2013
Dollars
Revenue:
Market 1 $ 43 $ 2,320 $ 12,205 $ 46,232
Market 2 230 1201 7652 26450
Market 3 256 932 3250 12658
Market 4 55 85 2450 5974
Total Revenue 584 4538 25557 91314
Gross Margin ($) 120 1100 9203 43228
Gross Margin (%) 20.5% 24.2% 36.0% 47.3%
Operating Expenses:
Sales & Marketing 555 2949 11500 31960
Research & Development 175 998 2811 8218
General & Administration 44 295 1533 4566
Total Operating Expenses: 774 4242 15844 44744
Other Expense/(Income) 101 232 311 969
Net Income (Loss) $ (755) $ (3,374) $ (6,952) $ (2,485)
Statement Notes:
Headcount
Existing 13 18 61 298
New Hires 5 43 237 830
Total Headcount 18 61 298 1,128
Capital Expenditures $ 126 $ 424 $ 1,584 $ 4,474
COPYRIGHT © 2011

10. Rule #4:
Use column headings that
make sense
(and there are violators of this in the room)
COPYRIGHT © 2011

11. Rule #5:
Numbers with thousands or
millions must have commas
This: 54,556
Not this: 54556
COPYRIGHT © 2011

12. ABC Company, Inc.
Projecte d Statement of Operations
For The Years Ended December 31, 2010 through 2013
Dollars
2010 2011 2012 2013
Revenue:
Market 1 $ 43 $ 2,320 $ 12,205 $ 46,232
Market 2 230 1,201 7,652 26,450
Market 3 256 932 3,250 12,658
Market 4 55 85 2,450 5,974
Total Revenue 584 4,538 25,557 91,314
Gross Margin ($) 120 1,100 9,203 43,228
Gross Margin (%) 20.5% 24.2% 36.0% 47.3%
Operating Expense s:
Sales & Marketing 555 2,949 11,500 31,960
Research & Development 175 998 2,811 8,218
General & Administration 44 295 1,533 4,566
Total Operating Expenses: 774 4,242 15,844 44,744
Other Expense/(Income) 101 232 311 969
Net Income (Loss) $ (755) $ (3,374) $ (6,952) $ (2,485)
S t at em ent Not es:
Headcount
Exis t ing 13 18 61 298
New Hir es 5 43 237 830
Tot al Headc ount 18 61 298 1,128
Capital Expenditure s $ 126 $ 424 $ 1,584 $ 4,474
COPYRIGHT © 2011

13. Rule #6:
Don’t mix fonts
Or font size……
And do not use a silly font
COPYRIGHT © 2011

14. Rule #7:
Text is left justified
Numbers are right justified
Violators confuse the reader
COPYRIGHT © 2011

15. Rule #8:
Do not overdo color
and
Do not highlight in
Use Spot color!
COPYRIGHT © 2011

16. Rule #9:
Round your numbers to the
nearest thousand for
presentations
Thank you Joe Caruso for this suggestion
COPYRIGHT © 2011

17. Rule #10:
Spelle Check
And do not tell me you relied
on Microsoft…….
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18. Financial Forecast in
your Slide deck is a
Marketing Effort!
(Huh)?
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19. • Provide cost-effective outsourced (part-time)
CFO support
• Clients range from pre-revenue startups to later
stage privately held companies
• Goal = provide strategic financial advice and
handle all accounting/ financial matters so the
entrepreneurs can focus on driving the business
COPYRIGHT © 2011

20. David Fogel, CPA
Serial entrepreneurial CFO
Principal of Swifton CFOs LLC (circa 2009)
Experience with high tech companies ranging from biotech
to telecom services to healthcare IT to social media to…
Adjunct Instructor of WPI MBA Program
Judge & Mentor:
Sponsor:
Associations:
COPYRIGHT © 2011

21. Developing The Financial Forecast
1. Defined
2. What about the assumptions?
3. Creating the sales forecast
4. Spreading the numbers
5. Creating the statements
COPYRIGHT © 2011

22. Ty Danco
Member, Mass Medical Angels
Member, North Country Angels
"I'll never believe your revenue numbers
anyway, but I sure want to scrutinize your
assumptions and expenses!"
COPYRIGHT © 2011

23. Developing The Financial Forecast
1.What are financial projections?
Collection of statements that present
your business in numbers (IS, BS, CF, Cap)
“Does the story make sense?”
“Does the story add up?”
COPYRIGHT © 2011

24. Set your goals from top down
but…..
Prepare the model from the bottom up
then….start over
with your top down goals
COPYRIGHT © 2011

25. Developing The Financial Forecast
2. What about the assumptions?
Document the source of each number you produce - Why?
- Knowledge of the assumptions proves that the
entrepreneur understands the business
- Prove it to yourself
Sources of assumptions
- Estimated or best guess (really try not to SWAG)
- Desired goal to be obtained
- Primary market research – surveys, vendor quotes
- Second market research – purchased or gov’t information
COPYRIGHT © 2011

26. Developing The Financial Forecast
2. What about the assumptions? (part 2)
Start-up costs (uses of $)
Financing (sources of $)
Capital expenditures (costs with >1 yr life)
Fixed expense (cost of being in business)
Variable expense (cost of doing business)
Projected sales (anticipated revenue earned)
Cash flow (anticipated $ received and spent)
COPYRIGHT © 2011

27. Start-up cost assumptions
• Expenses up to the point when you are open
for business…….which is when?
• List all the uses of money – describe exactly
how spent
• Two types: Fixed assets & Working Capital
• Examples?
Fixed Assets = Equipment, Furniture
Working Capital = Rental deposits, Insurance
COPYRIGHT © 2011

28. Financing assumptions
• Sources where $ will come from
• Where?
Entrepreneur and team
F&F
Bank loan (though not likely for start-ups)
Debt from owner or outside creditor
Non-dilutive financing (maybe )
Equity capital
• For loan – know amount, terms of repayment
(mos), and rate of interest or return
COPYRIGHT © 2011

29. Capital Expenditures
(aka Fixed Assets)
• Costs that have a “lifetime” greater than one year
AND an individual or collective cost greater than $2k
• Predict some fixed assets by headcount, some by
significant changes in sales volume, some by
changes in product lines, etc.
• Examples: Leasehold improvements, Furniture &
fixtures, Machinery
• Note: Probably expense the PCs & Macs & iPads
(but try to keep track of them anyway)
COPYRIGHT © 2011

30. Fixed cost assumptions
• Costs of being in business
• Do not vary by sales volume (i.e. day-to-day)
• But DO increase as the business scales
• Create fixed cost projections on monthly basis
• Research through correspondence with outside
vendors
• Record the source & amount from each
vendor……..
• Examples: Rent, Utilities, Salaries, Benefits,
Marketing expenses, Administrative expenses
COPYRIGHT © 2011

31. Variable cost assumptions
• Costs of doing business
• May vary directly with sales volume
• DO increase as the business scales
• Expenses incurred with the next “unit” of
product or service
• Research through correspondence with outside
vendors
• Examples: Materials, direct/indirect labor, and
shipping costs
COPYRIGHT © 2011

32. Projected sales assumptions
What product(s) and/or service(s)
Quantities
Price
When (seasonality/cyclicality)?
T&C’s
COPYRIGHT © 2011

33. Cash flow assumptions
• Convert your business activity to cash activity
• When will cash be collected from customers?
May vary by product line and by customer
Generally assume 45 days---though currently
customers are extending to 60 days
• When do you pay your vendor’s invoices?
May vary by product line and by vendor
Generally assume 30-45 days
Need to create “referenceable” vendors
COPYRIGHT © 2011

34. INTERMISSION

35. Developing The Financial Forecast
3. Creating the sales forecast
BEST - Predict by customer as detailed as
possible
….but include customer turnover
BETTER – Predict by market
COPYRIGHT © 2011

36. Developing The Financial Forecast
3. Creating the sales forecast (part 2)
How do I start? Market research
• Gov’t resources
US Census Bureau
IRS Statistical Data
• Trade association
• Primary & secondary research
Select your geography
COPYRIGHT © 2011

37. Developing The Financial Forecast
3. Creating the sales forecast (part 2)
Predict by client (customer) types
• By market
• By size
Then ID certain characteristics
Small Medium Large
Client Client Client
Average Hours Per 4 Hours 8 Hours 16 Hours
Week
Average Contract $ $500 $1,250 $2,500
Per Week
COPYRIGHT © 2011

38. Developing The Financial Forecast
3. Creating the sales forecast (part 3)
Predict using Sales staff
• Assume lag time (3-6 mos.)
• Estimate the pipeline
• # of calls / meetings per staff
• # of sales per staff
• Remember: Not all staff start same date
• Spread out the volume by month – with
realistic goals
• ….Consider turnover of sales staff
COPYRIGHT © 2011

39. Forecast Trap:
Why they call them “Gross Sales”
• Returns
• Discounts
• Rebates
• Chargebacks
• Markdowns
COPYRIGHT © 2011

40. Forecast Trap:
Do not over-estimate
first year revenue
(what, we can’t sell millions in first month?)
COPYRIGHT © 2011

41. Developing The Financial Forecast
4. Spreading the Numbers
• Yes, you need to do it monthly -- for the entire period
• No flat numbers – consider the meaning – use %
increases or $ per some type of unit
• Think: As headcount increases rent increases (just
not variably)
• Start with revenue, then cost of services
COPYRIGHT © 2011

42. Tip:
Integration
Must use an integrated model
Headcount added
Payroll and benefits calculation
Summarized employee costs
Income Statement
Cash Flow
COPYRIGHT © 2011

43. Tip:
Use Rounding
Use the MS Excel “rounding
function” --- otherwise your
numbers may not add up
COPYRIGHT © 2011

44. Question?
Is the methodology
Accrual or Cash?
COPYRIGHT © 2011

45. Tip:
If you want to be taken seriously do
not use round numbers
This: 53,567
Not this: 50,000
COPYRIGHT © 2011

46. Tip:
Project payroll & benefits in detail
• Payroll & benefits are often the most costly
expense yet they are often neglected
• Project monthly to handle startdates correctly
• Match additions of people with milestones
COPYRIGHT © 2011

47. Tip:
Projection Numbers are not separate from
the Company Plans
Company Plans
Milestone Projects Responsible Revenue/ Dates
Cost
COPYRIGHT © 2011

48. Tip:
Be careful with Depreciation and
Interest expense
• Depreciation is a non-cash expense – do
not include in cash flow
(we’ll worry about how to calculate this when you come see me)
• Interest expense does not include the
principal portion of your payment
COPYRIGHT © 2011

49. Ben Littauer
Member, Boston Harbor Angels
"I like to see a business model spreadsheet with
the assumptions clearly called out as variables.
Then I can twiddle the knobs and see how
sensitive profits are to the assumptions."
COPYRIGHT © 2011

50. Multiple Model Trap:
One investor model,
Multiple options (triggers)
But…why not?
You will make fundamental changes in the
base model and then forget to make similar
changes on the “other scenario models”
COPYRIGHT © 2011

51. Tip:
Don’t forget the…..
Sales commissions – Direct connect them to your
sales staff’s (or sales rep) sales
Bonuses – Include with payroll
Recruiting expenses – Peg them to change in new
employees
Debt - Many forget to include Interest Expense on
the income statement even though the Company
has incurred Debt
COPYRIGHT © 2011

52. Presentation Suggestions
Steady, consistent evolution of the model
Revenue growth in $
Expenses over time in %
Know the % change for major components
(and be able to explain them)
Do not allocate G&A/Facilities expenses
Show depreciation separately (non-cash)
COPYRIGHT © 2011

53. Tip:
Reasonableness
1. Once you think you are done take the
smell test --- Do the numbers really make
sense (i.e. can you really increase revenue
w/o an increase in costs)?
2. Do the Like-Kind test. Compare your
“metrics” versus your competition
COPYRIGHT © 2011

54. Creating the Statements
1. Consider it a Marketing Effort
2. Present the Pro-Forma Financial
Statement
3. Graph the Revenues, Income, and Cash
4. Present the Headcount
COPYRIGHT © 2011

55. ABC Co.
($ 000's omitted)
2010 2011 2012 2013 2014 Income
Pro Forma Financial Statement
Revenue $ - $ 1,875 $ 44,953 $ 108,238 $ 180,161
Statement
Cost of Service - 1,162 12,739 5,369 -
Gross Margin - 712 32,214 102,868 180,161
38% 72% 95% 100%
Operating Expenses
Employee Costs 1,303 2,972 3,587 4,198 4,379
Professional Fees 253 637 1,780 1,230 1,135
Marketing & Travel 61 525 2,340 293 658
Administrative Expenses 60 55 232 41 47
Development & Pilot Manufacturing 409 819 262 965 1,733
Facility & Other 195 801 1,206 1,612 2,023
Total Expenses 2,282 5,807 9,407 8,340 9,976
Depreciation & Amortization 42 98 301 590 791
EBIT (2,324) (5,193) 22,507 93,939 169,394
Cash Flow
Net Income (2,639) (5,411) 16,893 55,530 100,603
0% -289% 38% 51% 56% Statement
Pro Forma Cash Flow
Cash from Operations (2,597) (5,313) 17,193 56,120 101,393
Cash from Working Capital (31) (936) (2,879) (2,754) (3,437)
Cash from Investments (57) (297) (1,052) (607) (600)
Cash from Financing 7,000 - 42,000 - -
Net Cash Flow 4,315 (6,545) 55,262 52,759 97,357
Ending Cash $ 6,644 $ 99 $ 55,360 $ 108,119 $ 205,476
COPYRIGHT © 2011

56. ABC Company – Financials by Year
($ 000’s omitted)
$225,000 Seeking $250k Investment
Milestone #1
Prototype
$175,000
Milestone #2
Pilots
Milestone #3
$125,000 Commercialization
Revenue
Income
Cash
$75,000
$25,000
2010 2011 2012 2013 2014
($25,000)
COPYRIGHT © 2011

57. ABC Co. Headcount Summary
2010 2011 2012 2013 2014
Manufacturing - 1 1 1 1
Sales & Marketing - - 1 4 4
Research 7 19 19 19 19
Executive/Admin 3 8 9 9 9
International - 1 2 3 4
Total 10 29 32 36 37
COPYRIGHT © 2011

58. ABC Co. Headcount Summary
2010 2011 2012 2013 2014 For your review
Manufacturing
Sales & Marketing
-
- -
1 1
1
1
4
1
4
only. Not for
Research 7 19 19 19 19
Executive/Admin 3 8 9 9 9 presentation
International - 1 2 3 4
Total 10 29 32 36 37
2010 Jan, 10 Fe b, 10 Mar, 10 Apr, 10 May, 10 Jun, 10 Jul, 10 Aug, 10 Sep, 10 Oct, 10 Nov, 10 De c, 10
Manufacturing - - - - - - - - - - - -
Sales & Marketing - - - - - - - - - - - -
Research 7 7 7 7 7 7 7 7 7 7 7 7
Executive/Admin 2 2 3 3 3 3 3 3 3 3 3 3
International - - - - - - - - - - - -
Total 9 9 10 10 10 10 10 10 10 10 10 10
2011 Jan, 11 Fe b, 11 Mar, 11 Apr, 11 May, 11 Jun, 11 Jul, 11 Aug, 11 Sep, 11 Oct, 11 Nov, 11 De c, 11
Manufacturing 1 1 1 1 1 1 1 1 1 1 1 1
Sales & Marketing - - - - - - - - - - - -
Research
Executive/Admin
19
4
19
4
19
4
19
4
19
4
19
5
19
7
19
7
19
7
19
8
19
8
19
8 Looking at the
International - - - - - 1 1 1 1 1 1 1
Total 24 24 24 24 24 26 28 28 28 29 29 29 monthly
2012
Manufacturing
Jan, 12
1
Fe b, 12
1
Mar, 12
1
Apr, 12
1
May, 12
1
Jun, 12
1
Jul, 12
1
Aug, 12
1
Sep, 12
1
Oct, 12
1
Nov, 12
1
De c, 12
1
headcount helps
Sales & Marketing
Research
-
19
-
19
-
19
-
19
-
19
-
19
-
19
-
19
-
19
-
19
1
19
1
19
you find obvious
Executive/Admin
International
9
1
9
1
9
1
9
1
9
1
9
2
9
2
9
2
9
2
9
2
9
2
9
2 discrepancies
Total 30 30 30 30 30 31 31 31 31 31 32 32
2013 Jan, 13 Fe b, 13 Mar, 13 Apr, 13 May, 13 Jun, 13 Jul, 13 Aug, 13 Sep, 13 Oct, 13 Nov, 13 De c, 13
Manufacturing 1 1 1 1 1 1 1 1 1 1 1 1
Sales & Marketing 1 1 2 2 3 3 4 4 4 4 4 4
Research 19 19 19 19 19 19 19 19 19 19 19 19
Executive/Admin 9 9 9 9 9 9 9 9 9 9 9 9
International 2 2 3 3 3 3 3 3 3 3 3 3
Total 32 32 34 34 35 35 36 36 36 36 36 36
2014 Jan, 14 Fe b, 14 Mar, 14 Apr, 14 May, 14 Jun, 14 Jul, 14 Aug, 14 Sep, 14 Oct, 14 Nov, 14 De c, 14
Manufacturing 1 1 1 1 1 1 1 1 1 1 1 1
Sales & Marketing 4 4 4 4 4 4 4 4 4 4 4 4
Research 19 19 19 19 19 19 19 19 19 19 19 19
Executive/Admin 9 9 9 9 9 9 9 9 9 9 9 9
International 4 4 4 4 4 4 4 4 4 4 4 4
Total 37 37 37 37 37 37 37 37 37 37 37 37
COPYRIGHT © 2011

59. More on charts and tables……
1. Explain the sales & distribution model
(…so about those 90% margins)
2. Key events to next funding round
3. Cash flow cycle
COPYRIGHT © 2011

60. Universal Truths:
1. Project monthly, Present annually
2. Projections constantly change,
let them. Not an annual exercise.
Develop as a monthly exercise.
3. Financials must be consistent with rest
of presentation
4. Do not need to be hung up with GAAP,
but….don’t go rogue
COPYRIGHT © 2011

61. Even More Universal Truths:
5. Be consistent – Don’t portray cost
categories (or individuals)
differently by year
6. Have “Checks”
7. P&L Income ≠ Cash Flow
(we know this right?)
COPYRIGHT © 2011

62. Developing The Financial Forecast

63. Contact Information:
Email:
Website:
Twitter:
Phone:
Cell:
COPYRIGHT © 2010

64. COPYRIGHT © 2010