Innovation Management

Financial Business Planning

Yvon Schollaert
WORKSHOP : PREPARING THE FINANCIAL
FORECASTS FOR THE ORAL PITCH
• STEP 1 : START from your business model canvas
• List the needs (for the moment just identify list, do not estimate in euros):
• Human ressources
• Investments & fixed assets, Other : inventories
• Key costs and expenses
• Size your market and the potential sales you can reach
• Based on the size of your company now evaluate :
• The sales (Quantity x Price)
• The key costs
• The key investments
• The financing needs
WORKSHOP : PREPARING THE FINANCIAL
FORECASTS
• STEP 2 : for each individual fixed assets in which you are investing in :
• Compute the yearly depreciation cost
• Summ up all depreciation costs  this is a fixed cost
• Summ up all fixed costs that you identified and estimated in your business
• Depreciation expenses
• Salaries, wages
• Marketing costs, commercial costs
• Mantenance, electricity, rent…
• All other fixed costs
• STEP 3 : Define your variable cost per unit
• Raw material cost per unit
• If you are externalising your production, the production cost per unit
• Other variable costs : sales commission & bonuses…
• Distribution & transportation cost per unit
• STEP 4 : Use the break even analysis to define your sales level :
• BEP = Fixed Costs / (Selling price per unit – Variable costs per unit)
• Then you get the level of quantity that you need to reach in order to break even
• Then compare with your market potential and see if it is consistent
COURSE 6 : ORAL PITCHES = 5/7 minutes
• BUSINESS MODEL
• FINANCIALS :
• Income Statement simplified : 3 years
• Sales
• Key costs
• Profit/loss
• Break Even  How many customers or quantity you need to sell
• Needs : assets, equipement
• Financing requested