Practice Venture Worksheet FINANCIAL PLANNING AND FORECASTING TEMPLATE

Context

• Two students start a small t-shirt company. It is an e-commerce firm, and sales happen online through its website.
• The basic starting cost is the website design and development cost and the cost of office computers. We haven't considered a
fixed deposit for office space since they'll be working out of college. The cost of a Chartered Accountant company registration is
taken into account.
• The basic working capital is INR 150,000 and the total startup investment is INR 550,000. Half of the amount is invested by
founders and the other half is interest-free loan from college and friends and family.
• The products being sold are only round neck t-shirts for now. These are printed with cool designs that are crowdsourced or
designed by them. They keep rotating the design every 2-3 months.

• COGS is INR 200. This includes t-shirt, printing, and packaging costs. The shipping cost is separate.
• The selling price is at INR 400. The major expenses are online marketing costs, founder’s salary, and early employees'
salaries, server costs, and shipping charges.
• An extra inventory of 200 t-shirts is always bought in advance and held as a contingency from month four.
• The founders work all by themselves till month six, then they start adding employees. The total employee count at the end of
the year is 4. Not including the founders.
• Break-even point is INR 2,60,000 per month. So, the students need to sell 650 t-shirts a month to break even.
• The founders start paying the loan back in month 11.

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Instructions to use the template:
Please do not enter any data in the red cells. Those will be calculated automatically by the formulae which have bee

BASIC FINANCIAL PLAN: YOUR

Fixed Costs (for a
Startup Costs INR month) INR
Vehicle 234000 Salary 14000
Freezer 30000 Fuel 8000

Blender, RO 20000 Electricity 5000

License 4000 Rent 8000
Chairs, stools, signage 12000 Advertising 5000
Total 300000 Total 40000

Revenue (for 30 days) Customers (per day) No. of days

Number of customers 6000 200 30
Units per customer purchased 1
Price per unit (in your currency) 30
Purchase frequency during month 1
Total sales in units (no.) 6000
Total sales revenue (in yr currency) 180000
 ormulae which have been pre-populated in the excel sheet.

AL PLAN: YOUR BUSINESS IDEA

Salary per No. of
employee employees Variable Costs (per unit) Cost Unit Rate
7000 2 Yogurt 10 0.1 100
Fruit 5 0.05 100

Sugar 1.2 0.03 40

Cups, napkins 1
0
Total 17.2

SUMMARY
Revenue INR
Sales 180000
Others

Total 180000

Profit 36800
Breakeven 3125.00

Pay back period (months) 8.15

Contribution (margin) 12.80
 change this to your currency

Currency INR
Burn Rate and Runway Period
Your Monthly Fixed Cost (F11) 40000
Your Monthly Variable Cost (K11*C19) 103200

Your Monthly Operating Expense (P6 + P7) 143200

Your Monthly Revenue 180000
Burn Rate ( P8 - P9) -36800

Your cash reserve (the money you have with

you at your disposal)*
Your Runway Period ( P12/P10) 0

* This is the amount of "cash" you have at your disposal that you decided to
spend on the venture at the time of starting up.
Practice Venture Worksheet START-UP COSTS

Starting costs

Setting up the business

Consultant Fees (Accountants, Lawyers etc.) 25,000
Business Registration fees 17,000
Website Design 75000
Website Development 150,000
Computer Systems 50,000
Other Start-Up Costs 25,000

Equipment
Equipment NA

Starting operations
Marketing and Promotional Costs 18,000
Sampling 25,000
Stationery and office supplies 15,000
Working capital 150,000

Start-up capital
Equity investment (by Team) 275,000
Loans (from College or Others) 275,000
Total 550,000

Totals
Total set-up costs 550,000.00
Surplus Funds 0
Additional Funds You Need 0

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Practice Venture Worksheet PROFIT LOSS FORECAST

Profit and loss forecast

Dec '99 Jan '00 Mar '00 Apr '00 May '00 Jun '00 Jul '00 Aug '00 Sep '00 Oct '00 Nov '00 Dec '00 Totals

Sales
Cash Sales 40000 80000 160000 200000 200000 240000 280000 320000 400000 440000 480000 560000 3,400,000.00

Collections from Accounts Receivable

No. of Units Sold 100 200 400 500 500 600 700 800 1000 1100 1200 1400
Price Per Unit 400 400 400 400 400 400 400 400 400 400 400 400
Other Cash Receipts
Total Sales 40,000.00 80,000.00 160,000.00 200,000.00 200,000.00 240,000.00 280,000.00 320,000.00 400,000.00 440,000.00 480,000.00 560,000.00 3,400,000.00

COGS
Cost of Goods Sold 20000 40000 80000 100000 100000 120000 140000 160000 200000 220000 240000 260000 1,680,000.00

Additional Inventories 20000 20,000.00

Cost per unit 200 200 200 200 200 200 200 200 200 200 200 200
Gross profit 20,000.00 40,000.00 80,000.00 100,000.00 100,000.00 120,000.00 140,000.00 160,000.00 200,000.00 220,000.00 240,000.00 280,000.00 1,740,000.00

Operating Expenses
Salaries and Consultant Fees 0.00 20,000.00 20,000.00 30,000.00 30,000.00 45,000.00 45,000.00 60,000.00 60,000.00 60,000.00 75,000.00 75,000.00 520,000.00

Marketing and Promotion 15000 15000 20000 20000 20000 25000 27500 30000 35000 40000 40000 50000 337,500.00

Server 12000 12000 12000 12000 12000 12000 15000 15000 15000 15000 15000 15000 162,000.00

Utilities (Electricity etc.) 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 30,000.00

Transportation (Shipping, Courier, Taxis etc.) 8000 8000 16000 20000 20000 24000 28000 32000 40000 44000 48000 56000 344,000.00

Repairs and Maintenance 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12,000.00

Office Supplies 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 30,000.00

Misc. Expenses 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60,000.00

Loss, Theft, Wastage 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60,000.00

Total Expenses 51,000.00 71,000.00 84,000.00 98,000.00 98,000.00 122,000.00 131,500.00 153,000.00 166,000.00 175,000.00 194,000.00 212,000.00 1,555,500.00

Result
Net Profit/Loss -31,000.00 -31,000.00 -4,000.00 2,000.00 2,000.00 -2,000.00 8,500.00 7,000.00 34,000.00 45,000.00 46,000.00 68,000.00 184,500.00
Gross Profit Margin 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 51%
Net Profit Margin -78% -39% -3% 1% 1% -1% 3% 2% 9% 10% 10% 12% 5%

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Practice Venture Worksheet CASH FLOW FORECAST

Cash flow forecast

Dec '99 Jan '00 Mar '00 Apr '00 May '00 Jun '00 Jul '00 Aug '00 Sep '00 Oct '00 Nov '00 Dec '00 Totals
Starting Cash Position 550,000 469,000.00 438,000.00 434,000.00 436,000.00 438,000.00 436,000.00 444,500.00 451,500.00 485,500.00 530,500.00 551,500.00

Cash Inflows
Total Sales 40,000.00 80,000.00 160,000.00 200,000.00 200,000.00 240,000.00 280,000.00 320,000.00 400,000.00 440,000.00 480,000.00 560,000.00 3,400,000.00

Cash Outflows
Cost Of Goods Sold 20,000.00 40,000.00 80,000.00 100,000.00 100,000.00 120,000.00 140,000.00 160,000.00 200,000.00 220,000.00 240,000.00 260,000.00
Operating Expenses 51,000.00 71,000.00 84,000.00 98,000.00 98,000.00 122,000.00 131,500.00 153,000.00 166,000.00 175,000.00 194,000.00 212,000.00

New Fixed Assets Purchased 50,000

Additional Inventories Purchased

Loan Payments 25,000 25,000

Total 121,000.00 111,000.00 164,000.00 198,000.00 198,000.00 242,000.00 271,500.00 313,000.00 366,000.00 395,000.00 459,000.00 497,000.00 0.00

Result
Change during month -81,000.00 -31,000.00 -4,000.00 2,000.00 2,000.00 -2,000.00 8,500.00 7,000.00 34,000.00 45,000.00 21,000.00 63,000.00
Closing cash position 469,000.00 438,000.00 434,000.00 436,000.00 438,000.00 436,000.00 444,500.00 451,500.00 485,500.00 530,500.00 551,500.00 614,500.00

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Practice Venture Worksheet BALANCE SHEET

Balance sheet forecast

The numbers reflected on this Balance Sheet are computed as of: December 2, 1900

Assets
Current assets
Cash 614,500.00
Petty cash
Accounts Receivable
Stock on hand (Inventory) 20,000.00
Other Assets
Fixed assets
Equipment 50,000.00
Furniture
Other Fixed Assets
Total assets 684,500.00

Liabilities
Current liabilities
Accounts payable
Interest payable
Any Other Amounts Owed
Long-term liabilities
Loans from College 225,000.00
Loans from Friends and Family
Total liabilities 225,000.00
Net assets 459,500.00

Founder's equity
Retained Earnings 184,500.00
Share Capital 275,000.00
Total equity (should equal net assets) 459,500.00

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Practice Venture Worksheet BREAKEVEN ANALYSIS

Break-even analysis
Average sales price per unit 500.00 Breakeven Sales Level
Average cost of each unit 200.00 The breakeven sales level is the number of units that must
Gross Profit Margin 60% be sold in order to break even. This means that revenues are
Fixed costs 1,555,500 equal to expenses. Any units sold beyond this quantity will
allow the company to generate profit.
Sales required to break even $2,592,500
Number of unit sales to break even 5,185
One of the best uses of breakeven analysis is to play with
various scenarios. For instance, if you can reduce the cost of
producing an item, what will be the impact on how many
units you need to sell. You can use many such "what if"
Gross Margin % of Sales scenarios to arrive at the sales that your team can achieve.
Gross Margin 1,740,000
Formula:
Total Sales 3,400,000
Breakeven Point = Total Fixed Costs/(Gross Margin/Total
Gross Margin/Total Sales 51.2% Sales)
Total Fixed Expenses
Operating Expenses 1,555,500
Breakeven Sales in Dollars (Annual)
Gross Margin % of Sales 51.2%

Total Fixed Expenses 1,555,500

Yearly Breakeven Amount 3,039,483
Monthly Breakeven Amount 253,290

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Practice Venture Worksheet COGS CALCULATOR

Variable Costs of Products

Timeframe: Month
Product Line: Widget
Raw materials 120.00
Labor cost used to produce product 30.00
Packaging costs for the product 20.00
Printing 30.00
Total Product Expenses 200.00
Number Units Sold During Timeframe
Cost of Goods Sold (COGS) Per Unit 200.00

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Practice Venture Worksheet

Salaries

Dec '99 Jan '00 Mar '00 Apr '00 May '00 Jun '00 Jul '00 Aug '00 Sep '00 Oct '00 Nov '00 Dec '00

Employee Salaries
Founder 1 10,000 10,000 10,000 10,000 10,000 12,500 12,500 15,000 15,000 15,000 20,000 20,000
Founder 2 10,000 10,000 10,000 10,000 10,000 12,500 12,500 15,000 15,000 15,000 20,000 20,000
Employee 1 7,500 7,500 10,000 10,000 10,000 12,500 12,500
Employee 2 7,500 7,500 10,000 10,000 10,000 12,500 12,500
Employee 3 5,000 5,000 10,000 10,000 10,000 10,000 10,000
Employee 4 10,000 10,000
Total Salaries 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 45,000.00 45,000.00 60,000.00 60,000.00 60,000.00 75,000.00 75,000.00

Total Salaries #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!

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