1. Business Plan Preparation Financial Model
Frank Moyes College of Business and Administration University of Colorado Boulder, Colorado
Business Plan Preparation: Financial Model

2. Approach Download v6.8.3 Learn color codes Play with example
Before start, erase all green data
Business Plan Preparation: Financial Model

3. Architecture Outputs Inputs Funding & Valuation
Step 5 says Timeline, Switch with Step 6
Business Plan Preparation: Financial Model

4. Architecture - Outputs
5-year Income Statement
5-year Balance Sheet
5 year Cash Flow
Break-even Analysis
Income Statement by months & quarters
Cash Flow by months & quarters
Summary
Valuation
Step 5 says Timeline, Switch with Step 6
Business Plan Preparation: Financial Model

5. Architecture - Inputs Revenue Cost of Revenue Operating Expenses
Personnel
Extraordinary
Taxes
Property & Equipment
Working Capital
Funding
Step 5 says Timeline, Switch with Step 6
Business Plan Preparation: Financial Model

6. Suggested Approach Top down vs. bottoms up Financial drivers
Keep record of key assumptions
COMP’s provide reality check (ref to Library sources)
Revenue projections by months & quarters is key. AFFECTS:
Cost of Revenue
Operating Expenses
Working Capital
Monthly & Quarterly projections
Business Plan Preparation: Financial Model

7. Issues Profitability Assets & Liabilities Growth Gross margins
Operating expenses
Assets & Liabilities
Working Capital
Fixed Assets & Capital Expenditures
Growth
Business Plan Preparation: Financial Model

8. Architecture – Funding & Valuation
Equity
Debt
Venture Capital method
Business Plan Preparation: Financial Model

9. Powerful Tool Upfront effort
Powerful Tool
Upfront effort
Once basic projections are made that makes sense. How tell?
What if questions
Sensitivity analysis
Business Plan Preparation: Financial Model