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Instructions

This spreadsheet allows for the quick creation of financial projections and financial
statements when planning a entrepreneurial venture. It is designed to be as general
as possible but may not prove suitable for all businesses, particularly those with
complicated financial structures or irregular revenue. The spreadsheet assumes you
buy all equipment needed. The spreadsheet defaults to 100% debt financing, a mix of
debt and equity financing is also possible. No depreciation or amortization expenses
are calculated and a simple flat tax rate is assumed, with funds for taxes being set
aside as taxable income is earned.
1) Fill out the Questionnaire tab. All boxes in light blue should be filled out first. I
recommend you raise slightly more capital than you need. Next complete the
financing and sales estimate section. Do not forget to include the tax rate.
2) Next I recommend you select "Save as..." from the File menu and make a copy of
this spreadsheet. I recommend you modify the copy not the original.
3) Unless you are confident in you Excel skills and business planning expertise I
recommend you skip the Master Control tab. If you must meddle, adjust the orange
cells only.
4) The Answers tab contains the most useful information when planning a business,
estimates of: startup costs, monthly debt payment, revenue, break even sales, and
average monthly pre-tax income.
5) The Projections tab contains revenue, income, and cost projections for three years.
Do not modify this tab unless you know what you're doing.
6) The Balance Sheet is prepared in accordance with IFRS.
7) The Income Statement is prepared in accordance with IFRS.

8) The Statement of Cash Flow is prepared in accordance with IFRS.


9) The Valuation tab attempts to value the proposed business using the venture
capital method and the discounted cash flow method.
10) Y1 Bookkeeping tab is used to double check math and presents data in a slightly
different manner, than previous tabs.

Business Name
Current Fiscal Year

Example Inc.
2012

Contributed Capital

$10,000.00

Startup Costs
Tennant Improvements
Equipment
Furniture
Permits
Legal Expenses
Initial Stock
Grand Opening Promotion
Cash On Hand Contingency Funds
Consultant Fees

$40,000.00
$10,000.00
$5,000.00
$2,000.00
$2,500.00
$4,500.00
$10,000.00
$10,000.00
$5,000.00

Yearly Expenses
Total Employee Compensation

Year 1
$50,000

Year 2
$100,000

Year 3
$150,000

Monthly Expenses
Rent
Utilities
Maintenance and Repairs
Insurance
Marketing Budget
Additional Monthly Expenses

$10,000
$2,000
$500
$275
$2,500
$2,000

Financing Needed
Capital to be raised
Term Loan Interest Rate
Length of Term Loan

$79,000.00

$80,000
6.50% per year
5 in years

Sales
Average COGS
Initial Monthly Sales Estimate
Monthly Sales Growth
Effective Annual Tax Rate

36.50%
$42,500
1.00%
40%

Financing Shortfall
$79,000.00
Percentage Debt Financing
100%
Percentage Equity Financing
0%
Amount Borrowed
$80,000.00
Percentage of Company Sold to Investors
0.00%
Founder Ownership
100.00%
Amount Due To Shareholders
$10,000.00
Number of Payment Periods
60
Actual Monthly Interest Rate
0.54%
Total Cash Value of Loan
$93,917.51
Break Even Point Analysis
Monthly Rent
$10,000.00
Monthly Utility Costs
$2,000.00
Monthly Maintenance and Repair Costs
$500.00
Monthly Insurance Costs
$275.00
Average Monthly Wages and Benefits
$8,333.33
Monthly Marketing Budget
$2,500.00
Additional Monthly Expenses
$2,000.00
Monthly Debt Servicing Cost
$1,565.29
$27,173.63
Sales Margin
Needed Revenue
Company Valuation
Total Estimated Market Size
$1,000,000.00
Percentage of Market to be Captured
33%
Years to Exit
5
Compareable P/E
11
Desired IRR
40%
Desired Equity Investment
$0.00
Currently Issued Shares
10000
Capitalization Rate
18%

36.80%
7.36%
1.84%
1.01%
30.67%
9.20%
7.36%
5.76%
100%
63.50%
$42,793.11

Start Up Costs
Average Monthly Gross Revenue
Maximum Monthly Debt Payment
Monthly Break Even Sales
Average Monthly Pre-Tax Income

$89,000.00
$31,710.31
$1,565.29
$42,793.11
$4,536.69

Monthly Costs

Monthly Rent
Monthly Utility Costs

6%
7%

Monthly Maintenance and Repair


Costs

9%

37%

Monthly Insurance Costs

Average Monthly Wages and Benef


Monthly Marketing Budget
31%
7%

Additional Monthly Expenses


Monthly Debt Servicing Cost

1% 2%

Venture Capitalist Valuation


Discount Cash Flow Valuation

$428,588.16
$56,127.83

Maintenance and Repair

120000

100000

80000

60000

nsurance Costs

Monthly Wages and Benefits

40000

Marketing Budget
20000

l Monthly Expenses

Debt Servicing Cost

0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Sales
Net Income
Cash

25 26 27 28 29 30 31 32 33 34 35 36

Sales %

3
3

100%

101%

102%

$42,500.00

$42,925.00

$43,350.00

$15,512.50

$15,667.63

$15,822.75

Total Expenses

$10,000.00
$2,000.00
$500.00
$275.00
$4,166.67
$2,500.00
$2,000.00
$1,565.29
$23,006.96

$10,000.00
$2,000.00
$500.00
$275.00
$4,166.67
$2,500.00
$2,000.00
$1,565.29
$23,006.96

$10,000.00
$2,000.00
$500.00
$275.00
$4,166.67
$2,500.00
$2,000.00
$1,565.29
$23,006.96

Income Before Taxes

$3,980.54

$4,250.42

$4,520.29

$1,592.22

$1,700.17

$1,808.12

Income
Sales

COGS
COGS

Expenses
Rent
Utilities
Maintenance & Repairs
Insurance
Wages & Benefits
Marketing
Misc. Expenses
Debt Servicing

Taxes Due
Cash Out
Cash In
Cash On Hand

$79,000.00
$90,000.00
$11,000.00

$40,111.68
$42,500.00
$13,388.32

$40,374.75
$42,925.00
$15,938.57

$40,637.83
$43,350.00
$18,650.75

Loan Principal Balance


Principal Payment
Interest Payment
Total Loan Payment

$80,000.00

$78,868.04
$1,131.96
$433.33
$1,565.29

$77,729.95
$1,138.09
$427.20
$1,565.29

$76,585.70
$1,144.25
$421.04
$1,565.29

2012
4

9
9

103%

104%

105%

106%

107%

108%

$43,775.00

$44,200.00

$44,625.00

$45,050.00

$45,475.00

$45,900.00

$15,977.88

$16,133.00

$16,288.13

$16,443.25

$16,598.38

$16,753.50

$10,000.00
$2,000.00
$500.00
$275.00
$4,166.67
$2,500.00
$2,000.00
$1,565.29
$23,006.96

$10,000.00
$2,000.00
$500.00
$275.00
$4,166.67
$2,500.00
$2,000.00
$1,565.29
$23,006.96

$10,000.00
$2,000.00
$500.00
$275.00
$4,166.67
$2,500.00
$2,000.00
$1,565.29
$23,006.96

$10,000.00
$2,000.00
$500.00
$275.00
$4,166.67
$2,500.00
$2,000.00
$1,565.29
$23,006.96

$10,000.00
$2,000.00
$500.00
$275.00
$4,166.67
$2,500.00
$2,000.00
$1,565.29
$23,006.96

$10,000.00
$2,000.00
$500.00
$275.00
$4,166.67
$2,500.00
$2,000.00
$1,565.29
$23,006.96

$4,790.17

$5,060.04

$5,329.92

$5,599.79

$5,869.67

$6,139.54

$1,916.07

$2,024.02

$2,131.97

$2,239.92

$2,347.87

$2,455.82

$40,900.90
$43,775.00
$21,524.85

$41,163.98
$44,200.00
$24,560.87

$41,427.05
$44,625.00
$27,758.82

$41,690.13
$45,050.00
$31,118.70

$41,953.20
$45,475.00
$34,640.50

$42,216.28
$45,900.00
$38,324.22

$75,435.24
$1,150.45
$414.84
$1,565.29

$74,278.56
$1,156.68
$408.61
$1,565.29

$73,115.61
$1,162.95
$402.34
$1,565.29

$71,946.36
$1,169.25
$396.04
$1,565.29

$70,770.78
$1,175.58
$389.71
$1,565.29

$69,588.83
$1,181.95
$383.34
$1,565.29

10

11

12

10

11

12

13

14

15

109%

110%

111%

112%

113%

114%

$46,325.00

$46,750.00

$47,175.00

$47,600.00

$48,025.00

$48,450.00

$16,908.63

$17,063.75

$17,218.88

$17,374.00

$17,529.13

$17,684.25

$10,000.00
$2,000.00
$500.00
$275.00
$4,166.67
$2,500.00
$2,000.00
$1,565.29
$23,006.96

$10,000.00
$2,000.00
$500.00
$275.00
$4,166.67
$2,500.00
$2,000.00
$1,565.29
$23,006.96

$10,000.00
$2,000.00
$500.00
$275.00
$4,166.67
$2,500.00
$2,000.00
$1,565.29
$23,006.96

$10,000.00
$2,000.00
$500.00
$275.00
$8,333.33
$2,500.00
$2,000.00
$1,565.29
$27,173.63

$10,000.00
$2,000.00
$500.00
$275.00
$8,333.33
$2,500.00
$2,000.00
$1,565.29
$27,173.63

$10,000.00
$2,000.00
$500.00
$275.00
$8,333.33
$2,500.00
$2,000.00
$1,565.29
$27,173.63

$6,409.42

$6,679.29

$6,949.17

$3,052.37

$3,322.25

$3,592.12

$2,563.77

$2,671.72

$2,779.67

$1,220.95

$1,328.90

$1,436.85

$42,479.35
$46,325.00
$42,169.87

$42,742.43
$46,750.00
$46,177.45

$43,005.50
$47,175.00
$50,346.95

$45,768.58
$47,600.00
$52,178.37

$46,031.65
$48,025.00
$54,171.72

$46,294.73
$48,450.00
$56,327.00

$64,796.66
$1,207.77
$357.52
$1,565.29

$63,582.35
$1,214.31
$350.98
$1,565.29

$62,361.46
$1,220.89
$344.40
$1,565.29

Year 1 Pre-tax Income


$68,400.48
$1,188.35
$376.94
$1,565.29

$67,205.69
$1,194.79
$370.50
$1,565.29

$65,578.25
$66,004.43
$1,201.26
$364.03
$1,565.29

2013
4

16

17

18

19

20

21

115%

116%

117%

118%

119%

120%

$48,875.00

$49,300.00

$49,725.00

$50,150.00

$50,575.00

$51,000.00

$17,839.38

$17,994.50

$18,149.63

$18,304.75

$18,459.88

$18,615.00

$10,000.00
$2,000.00
$500.00
$275.00
$8,333.33
$2,500.00
$2,000.00
$1,565.29
$27,173.63

$10,000.00
$2,000.00
$500.00
$275.00
$8,333.33
$2,500.00
$2,000.00
$1,565.29
$27,173.63

$10,000.00
$2,000.00
$500.00
$275.00
$8,333.33
$2,500.00
$2,000.00
$1,565.29
$27,173.63

$10,000.00
$2,000.00
$500.00
$275.00
$8,333.33
$2,500.00
$2,000.00
$1,565.29
$27,173.63

$10,000.00
$2,000.00
$500.00
$275.00
$8,333.33
$2,500.00
$2,000.00
$1,565.29
$27,173.63

$10,000.00
$2,000.00
$500.00
$275.00
$8,333.33
$2,500.00
$2,000.00
$1,565.29
$27,173.63

$3,862.00

$4,131.87

$4,401.75

$4,671.62

$4,941.50

$5,211.37

$1,544.80

$1,652.75

$1,760.70

$1,868.65

$1,976.60

$2,084.55

$46,557.80
$48,875.00
$58,644.20

$46,820.88
$49,300.00
$61,123.32

$47,083.95
$49,725.00
$63,764.37

$47,347.03
$50,150.00
$66,567.35

$47,610.10
$50,575.00
$69,532.25

$47,873.18
$51,000.00
$72,659.07

$61,133.96
$1,227.50
$337.79
$1,565.29

$59,899.81
$1,234.15
$331.14
$1,565.29

$58,658.98
$1,240.83
$324.46
$1,565.29

$57,411.42
$1,247.56
$317.74
$1,565.29

$56,157.11
$1,254.31
$310.98
$1,565.29

$54,896.00
$1,261.11
$304.18
$1,565.29

10

11

12

22

23

24

25

26

27

121%

122%

123%

124%

125%

126%

$51,425.00

$51,850.00

$52,275.00

$52,700.00

$53,125.00

$53,550.00

$18,770.13

$18,925.25

$19,080.38

$19,235.50

$19,390.63

$19,545.75

$10,000.00
$2,000.00
$500.00
$275.00
$8,333.33
$2,500.00
$2,000.00
$1,565.29
$27,173.63

$10,000.00
$2,000.00
$500.00
$275.00
$8,333.33
$2,500.00
$2,000.00
$1,565.29
$27,173.63

$10,000.00
$2,000.00
$500.00
$275.00
$8,333.33
$2,500.00
$2,000.00
$1,565.29
$27,173.63

$10,000.00
$2,000.00
$500.00
$275.00
$12,500.00
$2,500.00
$2,000.00
$1,565.29
$31,340.29

$10,000.00
$2,000.00
$500.00
$275.00
$12,500.00
$2,500.00
$2,000.00
$1,565.29
$31,340.29

$10,000.00
$2,000.00
$500.00
$275.00
$12,500.00
$2,500.00
$2,000.00
$1,565.29
$31,340.29

$5,481.25

$5,751.12

$6,021.00 $2,124.21

$2,394.08

$2,663.96

$2,192.50

$2,300.45

$2,408.40

$849.68

$957.63

$1,065.58

$48,136.25
$51,425.00
$75,947.82

$48,399.33
$51,850.00
$79,398.50

$48,662.40
$52,275.00
$83,011.10

$51,425.48
$52,700.00
$84,285.62

$51,688.55
$53,125.00
$85,722.07

$51,951.63
$53,550.00
$87,320.45

$49,782.89
$1,288.65
$276.64
$1,565.29

$48,487.25
$1,295.63
$269.66
$1,565.29

$47,184.60
$1,302.65
$262.64
$1,565.29

Year 2 Pre-tax Income


$53,628.06
$1,267.94
$297.35
$1,565.29

$52,353.25
$1,274.81
$290.49
$1,565.29

$ 54,440.25
$51,071.54
$1,281.71
$283.58
$1,565.29

2014
4

28

29

30

31

32

33

127%

128%

129%

130%

131%

132%

$53,975.00

$54,400.00

$54,825.00

$55,250.00

$55,675.00

$56,100.00

$19,700.88

$19,856.00

$20,011.13

$20,166.25

$20,321.38

$20,476.50

$10,000.00
$2,000.00
$500.00
$275.00
$12,500.00
$2,500.00
$2,000.00
$1,565.29
$31,340.29

$10,000.00
$2,000.00
$500.00
$275.00
$12,500.00
$2,500.00
$2,000.00
$1,565.29
$31,340.29

$10,000.00
$2,000.00
$500.00
$275.00
$12,500.00
$2,500.00
$2,000.00
$1,565.29
$31,340.29

$10,000.00
$2,000.00
$500.00
$275.00
$12,500.00
$2,500.00
$2,000.00
$1,565.29
$31,340.29

$10,000.00
$2,000.00
$500.00
$275.00
$12,500.00
$2,500.00
$2,000.00
$1,565.29
$31,340.29

$10,000.00
$2,000.00
$500.00
$275.00
$12,500.00
$2,500.00
$2,000.00
$1,565.29
$31,340.29

$2,933.83

$3,203.71

$3,473.58

$3,743.46

$4,013.33

$4,283.21

$1,173.53

$1,281.48

$1,389.43

$1,497.38

$1,605.33

$1,713.28

$52,214.70
$53,975.00
$89,080.75

$52,477.78
$54,400.00
$91,002.97

$52,740.85
$54,825.00
$93,087.12

$53,003.93
$55,250.00
$95,333.20

$53,267.00
$55,675.00
$97,741.20

$53,530.08
$56,100.00
$100,311.12

$45,874.89
$1,309.71
$255.58
$1,565.29

$44,558.09
$1,316.80
$248.49
$1,565.29

$43,234.15
$1,323.94
$241.36
$1,565.29

$41,903.05
$1,331.11
$234.19
$1,565.29

$40,564.73
$1,338.32
$226.97
$1,565.29

$39,219.16
$1,345.57
$219.73
$1,565.29

Total
10

11

34

35

12
36

133%

134%

135%

$56,525.00

$56,950.00

$57,375.00

$1,797,750.00

$20,631.63

$20,786.75

$20,941.88

$656,178.75

$10,000.00
$2,000.00
$500.00
$275.00
$12,500.00
$2,500.00
$2,000.00
$1,565.29
$31,340.29

$10,000.00
$2,000.00
$500.00
$275.00
$12,500.00
$2,500.00
$2,000.00
$1,565.29
$31,340.29

$10,000.00
$2,000.00
$500.00
$275.00
$12,500.00
$2,500.00
$2,000.00
$1,565.29
$31,340.29

$978,250.51

$4,553.08

$4,822.96

$5,092.83 $163,320.74

$1,821.23

$1,929.18

$2,037.13

$53,793.15
$56,525.00
$103,042.97

$54,056.23
$56,950.00
$105,936.75

$54,319.30
$57,375.00
$108,992.45

Year 3 Pre-tax Income


$37,866.31
$1,352.85
$212.44
$1,565.29

$36,506.13
$1,360.18
$205.11
$1,565.29

$ 43,302.25
$35,138.58
$1,367.55
$197.74
$1,565.29

Example Inc.
Balance Sheet
As At
2012
Unaudited
2012
ASSETS
CURRENT
Cash
Accounts Receivable
Deposits and Prepaid Expenses
Inventory

PROPERTY, PLANT, & EQUIPMENT


INVESTMENTS

LIABILITIES
CURRENT LIABILITIES
Line of Credit
Accounts Payable and Accrued Liabilities
Long-term debt - current portion
Income Tax Payable

LONG-TERM DEBT

SHAREHOLDER'S EQUITY
CONTRIBUTED CAPITAL
RETAINED EARNINGS (DEFICIT)

APPROVED

50,347
4,500
54,847
15,000
69,847

14,933
14,933
51,072
66,004

10,000
(6,157)
3,843
69,847

Example Inc.
Statement of Income and Retained Earnings
For The Year Ended
2012
UNAUDITED

REVENUE

COST OF SALES
Opening Inventory
Purchases

2012
538,050

4,500
196,388
200,888
4,500
196,388

Closing Inventory

GROSS PROFIT

341,662

OPERATING EXPENSES
INCOME FROM OPERATIONS

276,084
65,578

OTHER INCOME (EXPENSES)


Loss on disposal of property, plant and equipment
Gain on sale of investment
Miscellaneous

(45,504)
(45,504)
20,074
26,231
(6,157)

NET INCOME BEFORE TAXES


INCOME TAX EXPENSE
NET INCOME
(DEFICIT) - Beginning of Year
DIVIDENDS
RETAINED EARNINGS (DEFICIT) - End of Year

(6,157)

Example Inc.
Statement of Cash Flow
For the Year Ended
2012
UNAUDITED
2012
CASH FLOWS FROM OPERATING ACTIVITES
Net income for the year

(6,157)

Adjustment for:

(6,157)

Amortization
Loss on disposal of property, plant and equipment
Gain on disposal of investment
Cash derived from operations
Decrease (increase) in working capital items

(4,500)
(10,657)

Accounts receivable
Deposits and prepaid expenses
Inventory
Accounts payable and accrued liabilities
Long-term debt - current portion
Income tax payable

Cash flows from operating activities


CASH FLOWS FROM INVESTING ACTIVITIES

(15,000)
(15,000)

Acquisition of property, plant and equipment


Proceeds from disposal of property, plant and equipment
Proceeds from disposal of investment
Dividends

Cash flows from investing activities


CASH FLOWS FROM FINANCING ACTIVITIES

10,000
66,004
76,004

Advances from (repayments to) shareholder


Acquisition of (repayment of) long-term debt

NET INCREASE (DECREASE) IN CASH RESOURCES


CASH (DEFICIENCY) RESOURCES - Beginning of Year
CASH RESOURCES (DEFICIENCY) - End of Year

50,347
50,347

Venture Capital Valuation Method


Terminal Net Income
Terminal Value
Estimated PV of Company
Shares to Issue to Investor
Share Price

$209,550.00
$2,305,050.00
$428,588.16
0
#DIV/0!

DCF Valuation Method


DCF NPV

$56,127.83
Year

Income From Operations

PV of Cash Flow

-$79,000.00

-$79,000.00

1
2
3

$65,578.25
$54,440.25
$43,302.25

$46,841.61
$27,775.64
$15,780.70

Residual

$44,729.88

Assets
Liabilities
Share Holder's Equity
Revenue
Expenses

69,846.95
66,004.43
10,000.00
(6,157.48)
538,050.00
544,207.48
(6,157.48)

Cash
Equipment
90,000.00
10,000.00
(10,000.00)
(5,000.00)
(4,500.00)
(40,000.00)
(2,000.00)
(2,500.00)
(10,000.00)
(5,000.00)
(50,000.00)
(120,000.00)
(24,000.00)
(6,000.00)
(3,300.00)
(30,000.00)
(24,000.00)
538,050.00
(196,388.25)
(18,783.50)
(26,231.30)
50,346.95
10,000.00

Furniture
5,000.00

Inventory
4,500.00

5,000.00

4,500.00

Debt
80,000.00
(1,131.96)
(1,138.09)
(1,144.25)
(1,150.45)
(1,156.68)
(1,162.95)
(1,169.25)
(1,175.58)
(1,181.95)
(1,188.35)
(1,194.79)
(1,201.26)

66,004.43

Share
Holders
Equity
10,000.00

10,000.00

Tennant
Improvements
40,000.00

Permits
2,000.00

Legal
2,500.00

40,000.00

2,000.00

2,500.00

Marketing Consultants
10,000.00
5,000.00
30,000.00

40,000.00

5,000.00

Wages
50,000.00

Rent
120,000.00

50,000.00

120,000.00

Utilities
Maintenance
24,000.00
6,000.00

24,000.00

6,000.00

Insurance
3,300.00

Misc.
Expenses
24,000.00

3,300.00

24,000.00

COGS
15,512.50
15,667.63
15,822.75
15,977.88
16,133.00
16,288.13
16,443.25
16,598.38
16,753.50
16,908.63
17,063.75
17,218.88

Interest
Expense
433.33
427.20
421.04
414.84
408.61
402.34
396.04
389.71
383.34
376.94
370.50
364.03

Tax
1,592.22
1,700.17
1,808.12
1,916.07
2,024.02
2,131.97
2,239.92
2,347.87
2,455.82
2,563.77
2,671.72
2,779.67

196,388.25

4,787.93

26,231.30

Sales
42,500.00
42,925.00
43,350.00
43,775.00
44,200.00
44,625.00
45,050.00
45,475.00
45,900.00
46,325.00
46,750.00
47,175.00

538,050.00