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Financial Plan for Business Growth

The document outlines a financial plan for a growing business, including key priorities, rules for the financial model, and plan format. It discusses the conflict between revenue growth and cash flow, and priorities of revenue growth, cash flow breakeven, and profitability. The financial plan format includes a financial summary, sources and uses, assumptions, income statement, balance sheet, and cash flow. The financial summary shows projections for sales people, revenue, margins, expenses, EBITDA, investments, and more over 5 years. Assumptions are provided for key revenue drivers like locations, visitors, customers, applications, and fees.

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25 views10 pages

Financial Plan for Business Growth

The document outlines a financial plan for a growing business, including key priorities, rules for the financial model, and plan format. It discusses the conflict between revenue growth and cash flow, and priorities of revenue growth, cash flow breakeven, and profitability. The financial plan format includes a financial summary, sources and uses, assumptions, income statement, balance sheet, and cash flow. The financial summary shows projections for sales people, revenue, margins, expenses, EBITDA, investments, and more over 5 years. Assumptions are provided for key revenue drivers like locations, visitors, customers, applications, and fees.

Uploaded by

api-25978665
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

FINANCIAL PLAN

THE PROCESS
BUSINESS

CONFLICT BETWEEN:

1. GROWTH IN REVENUE
2. CASH FLOW
GROWING A BUSINESS

IN ORDER OF PRIORITY
1. REVENUE GROWTH
2. CASH FLOW BREAKEVEN
3. PROFITABILITY
RULES OF FINANCIAL MODEL

1. SELF-EXPLANATORY
2. DERIVED FROM BUSINESS MODEL
3. FOCUS ON UNIT ECONOMICS NOT GAAP
4. GOOD ACCOUNTING
5. DEMONSTRATE INDUSTRY KNOWLEDGE
6. BETTER THAN A BUSINESS PLAN
PLAN FORMAT

• Financial Summary
• Sources And Uses
• Assumptions Page (Shows Drivers)
• Income Statement
• Balance Sheet
• Cash Flow
PLAN FORMAT (OPTIONAL)

• Revenue/Opex Detail
• Capex Detail
• Headcount
• Unit Economics
FINANCIAL SUMMARY

YEAR
1 2 3 4 5
Sales People 3 10 20 40 80
Revenue/Sales Person Annualized 1,500,000 1,200,000 800,000 800,000 800,000
Sales Person EBITDA Contribution 450,000 330,000 170,000 170,000 170,000

Revenue 1,200,000 7,200,000 12,000,000 24,000,000 40,000,000


Gross Margin $ 480,000 3,024,000 5,280,000 11,040,000 19,200,000
Gross Margin % 40% 42% 44% 46% 48%

Operating Expense 900,000 2,700,000 4,200,000 7,500,000 11,000,000


EBITDA (420,000) 324,000 1,080,000 3,540,000 8,200,000
EBITDA % -35% 5% 9% 15% 21%

New Investment 1,500,000 3,000,000 2,000,000 - -


SOURCES AND USES
ASSUMPTIONS

Assumptions Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07


Revenue
Total Locations Available 37 37 37 37 37 37
% Locations Awarded 15% 15% 15% 15% 15% 15%
Locations Awarded 6 6 6 6 6 6
Locations Operating 1 1 1 1 1 2
Visitors Per Location per Month 50,000 50,000 50,000 50,000 50,000 100,000
Customers % 0.07 0.07 0.07 0.07 0.07 0.07
Customers 3,500 3,500 3,500 3,500 3,500 7,000
Coordinators per Location 30 30 30 30 30 60
App. Proc./Coordinator 80 80 80 80 80 80
Applications Processed 2,400 2,400 2,400 2,400 2,400 4,800
% Approved 85% 85% 85% 85% 85% 85%
Applications Approved 2,040 2,040 2,040 2,040 2,040 4,080
Fee Per Application $ 45 45 45 45 45 45
Application Revenue $ 91,800 91,800 91,800 91,800 91,800 183,600

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