Quick Reference Guide (QRG) for the Template

Use the Template given in the next tab to create your Basic Financial Plan.
Keep the following points in mind while using the template:
• The Template given has been created for a Smoothie business.
• To create the Basic Financial Plan for your venture, replace the values entered in black with your ve
• Please do not enter any data in the red cells. Those will be calculated automatically by the formula

Key terms, what they mean and how they are calculated
Fixed Costs You incur these costs irrespective of whether y
that is purchased
These are costs that you incur only if you prod
Variable Costs produce e.g. contractual payments for addition
Average cost per unit of product sold; ideally if
difference in pricing, you will calculate this sep
Price per unit
Purchase frequency Avg. no. of times your customers are expected
Your costs per unit calculation = (fixed cost / total units) + Your actual per unit is a sum of your fixed cost
variable cost
Price per unit = the price at which you will sell the product Ideally your price per unit should be higher tha
Sometimes, your investment upfront is very hi
reach a certain capacity of production and or w

Break-Even Point (Units) Fixed Costs ÷ (Revenue per Unit – Variable Cos
Break-Even Point (currency sales) Fixed Costs ÷ Contribution Margin
Contribution Margin = Price of Product – Variable Costs Contribution margin is what goes towards fulfi
is your profit

Click here to learn more about these key financial terms.

ered in black with your venture-specific projected/real values.
omatically by the formulae which have been pre-populated in the excel sheet.

s irrespective of whether you produce something or not e.g. salaries, rents, equipment
you incur only if you produce something and even then against the units that your
tual payments for additional workers, raw materials, rentals on equipment
t of product sold; ideally if you have more than one type of product with a vast
you will calculate this separately for each product type
ur customers are expected to or actually buy your product or service
is a sum of your fixed cost divided by your total units and your variable costs

r unit should be higher than your cost per unit - otherwise you will make a loss.
estment upfront is very high and your price per unit will only make sense when you
city of production and or when you have sold a certain no. of products.

ue per Unit – Variable Cost per Unit)

bution Margin
is what goes towards fulfilling your fixed costs. And if there is money left after that, it
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 been pre

BASIC FINANCIAL PLAN: YOUR BUSINESS

Salary per
Startup Costs INR Fixed Costs (for a month) INR employee
Vehicle 234000 Salary 14000 7000
Freezer 30000 Fuel 5000

Blender, RO 20000 Electricity 5000

License 4000 Rent 8000
Chairs, stools, signage 12000 Advertising 5000
Total 300000 Total 37000

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 mont 1
Total sales in units (no.) 6000
Total sales revenue (in yr curren 180000
ormulae which have been pre-populated in the excel sheet.

: YOUR BUSINESS IDEA

No. of
employees Variable Costs (per unit) Cost Unit Rate
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 39800
Breakeven 2890.63

Pay back period (months) 7.54

Contribution (margin) 12.80
 change this to your currency

Currency INR
Burn Rate and Runway Period
Your Monthly Fixed Cost (F11) 37000
Your Monthly Variable Cost (K11*C19) 103200
Your Monthly Operating Expense (P6 +
P7) 140200
Your Monthly Revenue 180000
Burn Rate ( P8 - P9) -39800

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.