This deck was prepared for researchers in Mexico as part of a workshop to help convert ideas into projects

1. Converting ideas into projects
Cash flow

2. Importance of cash flow
• Tests
– Assumptions
– Team understanding
• Brings reality of project to life
• Creates understanding about financial
implications
• Vocabulary to make a business case for
translation of your project

3. Cash is King
• Cash – IN
• Minus Cash – OUT
• Balance
The next slide is a simplified demonstration of cash in and cash out.
Much more sophistication is and can be added to the task when using a computer
And/or with the help of a mentor.
For those who have never worked out the financial implications of commercialising a project
this is provided as a tool to create conversations.

4. Jan Feb Mar Apr Etc.,
In: e.g.
Grants
Savings
Loans
Customers
Sub-total
Out: e.g.
Research
Prototype
Staff
Marketing
Travel
Capital
expenditure
Direct costs
Fixed costs

5. Take your team of people….
Form 3 groups - each group do the same task….
Group 1 – Take an optimistic position – of a high growth project
Group 2 – Take a middle way approach
Group 3 – Take a cautious approach – with low risk mentality
1. Work out the costs, timing of actions you propose
2. Work out the possibility of cash in….
3. Work out the balances at the end of each month
4. Compare notes and see how the assumptions will influence the viability