How Much $ does your new venture need How much is your company worth（四）.pptVIP

How much $ does your new venture need? How much is your company worth? Both questions: different sides of same coin Take as little cash as you will need; you will be left with more ownership, less dilution. Take as much cash as you will need (plus a little); you will have unplanned surprises. Almost no one hits their plan with regularity. Five year plans are a cute idea; one year, month to month cash forecasts are a requirement. Five year forecasts prove you know how to do spreadsheets. It’s a good - if silly - exercise. Optimistic Most Likely Pessimistic Income Statement, Balance Sheet, Cash Flow Statement Income Statement and Cash Flow are most important. It is possible to do very well (income statement) and have a very poor cash flow statement. That is what this is about. It is possible to do poorly… and have a poor cash flow statement. Income Statement Basics Sales 1,000,000 -COGS Direct Mat 100,000 Direct Lab 200,000 Man. OH 400,000 ____________________________ Gross Margin $300,000 In search of income... Gross Margin $300,000 - GA Rent 100,000 Salaries etc 100,000 -200,000 ------------------------------------------------- = Profit before Sales Exp. $100,000 Sales expenses, etc. Profit before sales expense $100,000 -Sales Expense Salaries 200,000 Travel 100,000 = 300,000 ___________________________________ = Operating Income/loss = -$200,000 Operating Income Operating Income -$200,000 - Interest Expense 0 -Taxes 0 _____________________________ Net Income, Yr. 1 -$200,000 5 year Category 1 2 3 4 5 sales 1 2.0 4 6 9.0 -cogs 0.7 1.2 2 3 4.2 ___________________________________ Gross Margin 0.3 0.8 2 3 4.8 5 year Categ 1 2 3 4 5 G. Mar 0.3 0.8 2. 3. 4.8 -GA 0.2 0.3 0.6 0.9 1.35 -Sales ex. 3 0.6 1. 1.2 1.5 -int exp... 0 0 0.1 0.15 0.2 ______________________________________________________________________ inc... b4 tax -0.2 -0.1 0.3 0.75 1.75 In search of net income Category 1 2 3 4 5 inc..