Re-Gen is an entrepreneurial venture by students of the Bainbridge Graduate Institute. We want to change the way you workout...from within. Mind. Body. Spirit.
Sunday, February 1, 2009
financial model work in progress!!!
let's get in to print what we know, what we have questions about and where we find leads, clues and help...
since finances are a new realm to me i'm just trying to figure out what i'm looking at and what to do here. i've looked at the guidelines for this assignment and i'm not sure i know what monthly P&L for the first two years means and also measurable SROI. any other tips for helping me to navigate here would be greatly appreciated.
Your financials are simply another way of telling the story of your business. And your audience will want to understand enough about the assumptions behind your numbers to evaluate their plausibility. Sometimes it is helpful to present your business assumptions in terms of an individual transaction – and then show how many of these transactions you expect to do in a given period. Other times, you may want to talk about how much money you need to invest to get started – and then show how many transactions it will take to recover those start-up costs. Every business story is a little different – what does your audience need to know to understand your business story?
Once you’ve helped them to understand the numbers piece of how your business works, you will want to present your pro forma income statement in the conventional fashion investors are used to looking at. This will make it easy for them to compare your investment opportunity to others. The Financial Summary page of your Financial Model Template can be used for this purpose.
I've created a Google Doc titled "Re-Gen Fin plan". Let's work through this excel sheet by posting a question to the google doc (underline the questions), then as a group we can figure out the answers. Finally we can plug em into the excel sheet.
I accidentally posted a comment under the OPL section so i'll paste it here: I've been looking at the excel spreadsheet that Don forwarded, and although it's overwhelming at first, he has made it easy for us by highlighting in yellow the sections we need to fill out. The beauty of Excel is that once those "input" cells are filled in, the program automatically fills in the other spreadsheets. If we can work through that first "input" page we'll have a professional Fin Plan. Let's Do It! Working through it will help us figure out some key questions.
Oh Kaitlyn I forgot to get back to you re: P&L's and SROI. P&L = profit and loss statement. It lists all revenue (membership sales, yoga class, t-shirts, etc) to total gross revenue. Then it lists all expenses (rent, salaries, utiliities). Subtract expense total from revenue total to get net profit. This will force us to get down and dirty with the details and could be difficult. See wikipedia for more detailed: www.en.wikipedia.org/wiki/Income_statement
SROI=Social Return on Investment. Or what is the value of the social/environmental benefits that our company provides?
i am interested to get more in to what this means: SROI=Social Return on Investment. Or what is the value of the social/environmental benefits that our company provides? how are we going to measure this aspect? i guess the energy saving of the equipment is an obvious one and any rennos to retrofit for sustaibanility... but should we also look in to our specific offerings and how people value it - i guess the survey will help here to get real numbers on what people will pay for our extra services...
yo... you were mentioning some areas of the finances u are feeling frustrated ith and i'm wondering what those are cause i'd be in to looking to see if i could work out something there... u said around insurance, and what else?? what kind of insurance was that? for counseling? but what about other insurance we will need??
since finances are a new realm to me i'm just trying to figure out what i'm looking at and what to do here. i've looked at the guidelines for this assignment and i'm not sure i know what monthly P&L for the first two years means and also measurable SROI.
ReplyDeleteany other tips for helping me to navigate here would be greatly appreciated.
so... in regular words... what kind of numbers are we looking for? let's break it down.
ReplyDeleteFinancials
ReplyDeleteYour financials are simply another way of telling the story of your business. And your audience will want to understand enough about the assumptions behind your numbers to evaluate their plausibility. Sometimes it is helpful to present your business assumptions in terms of an individual transaction – and then show how many of these transactions you expect to do in a given period. Other times, you may want to talk about how much money you need to invest to get started – and then show how many transactions it will take to recover those start-up costs. Every business story is a little different – what does your audience need to know to understand your business story?
Once you’ve helped them to understand the numbers piece of how your business works, you will want to present your pro forma income statement in the conventional fashion investors are used to looking at. This will make it easy for them to compare your investment opportunity to others. The Financial Summary page of your Financial Model Template can be used for this purpose.
I've created a Google Doc titled "Re-Gen Fin plan".
ReplyDeleteLet's work through this excel sheet by posting a question to the google doc (underline the questions), then as a group we can figure out the answers. Finally we can plug em into the excel sheet.
I accidentally posted a comment under the OPL section so i'll paste it here:
ReplyDeleteI've been looking at the excel spreadsheet that Don forwarded, and although it's overwhelming at first, he has made it easy for us by highlighting in yellow the sections we need to fill out. The beauty of Excel is that once those "input" cells are filled in, the program automatically fills in the other spreadsheets. If we can work through that first "input" page we'll have a professional Fin Plan. Let's Do It!
Working through it will help us figure out some key questions.
Oh Kaitlyn I forgot to get back to you re: P&L's and SROI.
ReplyDeleteP&L = profit and loss statement. It lists all revenue (membership sales, yoga class, t-shirts, etc) to total gross revenue. Then it lists all expenses (rent, salaries, utiliities). Subtract expense total from revenue total to get net profit.
This will force us to get down and dirty with the details and could be difficult.
See wikipedia for more detailed: www.en.wikipedia.org/wiki/Income_statement
SROI=Social Return on Investment. Or what is the value of the social/environmental benefits that our company provides?
Hope this helps.
i am interested to get more in to what this means: SROI=Social Return on Investment. Or what is the value of the social/environmental benefits that our company provides?
ReplyDeletehow are we going to measure this aspect? i guess the energy saving of the equipment is an obvious one and any rennos to retrofit for sustaibanility...
but should we also look in to our specific offerings and how people value it - i guess the survey will help here to get real numbers on what people will pay for our extra services...
should we include a marketing budget?? we will need ongoing marketing.
ReplyDeleteyo... you were mentioning some areas of the finances u are feeling frustrated ith and i'm wondering what those are cause i'd be in to looking to see if i could work out something there... u said around insurance, and what else?? what kind of insurance was that? for counseling? but what about other insurance we will need??
ReplyDelete