Practice Venture Worksheet FINANCIAL PLANNING AND FORECASTING TEMPLATE

Context

• Three students start a Mentor Connect company. It is an AI powered ecosystem connect app , and all interactions happen
online through its mobile app.
• The basic starting cost is the website design and development cost and the cost of office computers. We have considered a
fixed deposit of 6 months rentals as is the norm for office space. The cost of company registration is taken into account along
with professional consultation fees.
• The total startup investment is INR 10,00,000. Half of the amount is invested by founders and the other half is interest-free loan
from friends and family.
• The products being sold are ' One Hour of Mentoring 'for now. These are one on one sessions that are purchased in advance
and paid for by the Entrepreneur mentee , The standard size is a 10hr pack . Mentors pay a listing fee for being on the app ,
additional revenues by way of in-line app advertising and mentor connect event sponsorhips can be factored in at later stages .
For simplicity of understanding only revenues accruing from Mentoring pack sales is considered.

• COGS is INR 700. This includes the cost of INR 400 per hour being paid to the Mentor for the engagement.
• The selling price is at INR 1000. The major expenses are online marketing costs, digital support services , founder’s salary,
and early employees' salaries, and server costs.
•
• The founders work all by themselves till month 4, then they start adding employees. The total employee count at the end of the
year is 5. Not including the founders.

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Practice Venture Worksheet START-UP COSTS

Starting Costs

Startup Cost
₱ 130,000.00

Consult Fees (Accountants, Lawyers, etc) ₱ 50,000.00

Business Registration Fees ₱ 20,000.00
Website-related (Domain registration, Website etc) ₱ 25,000.00
Licenses ₱ 30,000.00
Other Startup Costs ₱ 5,000.00

Capital Work in Progress ( Fixed Asset )

₱ 20,000.00

Platform Development ₱ 20,000.00

Starting Operations ( Budgeted )

₱ 350,000.00

Initial Moderator Fees ₱ 10,000.00

Platform Hosting ₱ 70,000.00
Initial Marketing Expenses ₱ 70,000.00
Misc Operational Costs ₱ 50,000.00

Start-up capital
₱ 500,000.00

Share Captial ₱ 300,000.00

Additional Funding ₱ 200,000.00

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Practice Venture Worksheet COGS CALCULATOR

Variable Costs of Products

Professional Engagement Fees ₱ 400.00
Consultation Coordination Charges ₱ 5.00
Transaction Fees ₱ 5.00
Misc. ₱ 10.00
Cost of Goods Sold (COGS) Per Unit ₱ 420.00

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Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Product category
1 month Subscription 2400 2500 2800 3000 3500 4300 5100 6500 7700 9600 11400 13200 72000
Revenue 1200000 1250000 1400000 1500000 1750000 2150000 2550000 3250000 3850000 4800000 5700000 6600000 36000000
Price Per Unit 500 500 500 500 500 500 500 500 500 500 500 500 500
COGS 1,008,000 1,050,000 1,176,000 1,260,000 1,470,000 1,806,000 2,142,000 2,730,000 3,234,000 4,032,000 4,788,000 5,544,000 30,240,000
Cost Per Unit 420 420 420 420 420 420 420 420 420 420 420 420 420
Practice Venture Worksheet

Salaries

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Employee Salaries
Founder 1 - CEO ₱ 60,000.00 ### ### ### ### ### ### ### ### ### ### ###
Founder 2 - CFO ₱ 55,000.00 ### ### ### ### ### ### ### ### ### ### ###
Founder 3 - CTO ₱ 55,000.00 ### ### ### ### ### ### ### ### ### ### ###
Founder 4 - CGO ₱ 50,000.00 ### ### ### ### ### ### ### ### ### ### ###
Emp 1 ### ### ### ### ### ###
Emp 2 ### ### ### ###
Emp 3 ### ### ###
Emp 4 ### ### ###
Total Salaries ₱ 220,000.00 ₱ 220,000.00 ₱ 220,000.00 ₱ 220,000.00 ₱ 220,000.00 ₱ 220,000.00 ₱ 245,000.00 ₱ 245,000.00 ₱ 265,000.00 ₱ 301,000.00 ₱ 301,000.00 ₱ 301,000.00

© 2018 Wadhwani Foundation

Practice Venture Worksheet PROFIT LOSS FORECAST

Profit & Loss Account ( Income Statement)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

Sales
Cash Sales ### ### ₱1,400,000.00 ### ### ### ### ### ### ₱4,800,000.00 ₱5,700,000.00 ₱6,600,000.00 ₱ 36,000,000.00

No. of Customers 2400 2500 2800 3000 3500 4300 5100 6500 7700 9600 11400 13200 72000
Price Per Unit ₱ 500.00 ₱ 500.00 ₱ 500.00 ₱ 500.00 ₱ 500.00 ₱ 500.00 ₱ 500.00 ₱ 500.00 ₱ 500.00 ₱ 500.00 ₱ 500.00 ₱ 500.00 ₱ 500.00

Other Cash Receipts

Total Sales ₱ 1,200,000.00 ₱ 1,250,000.00 ₱ 1,400,000.00 ₱ 1,500,000.00 ₱ 1,750,000.00 ₱ 2,150,000.00 ₱ 2,550,000.00 ₱ 3,250,000.00 ₱ 3,850,000.00 ₱ 4,800,000.00 ₱ 5,700,000.00 ₱ 6,600,000.00 ₱ 36,000,000.00

COGS
Cost of Services ### ### ₱1,176,000.00 ### ### ### ### ### ### ₱4,032,000.00 ₱4,788,000.00 ₱5,544,000.00 ₱ 30,240,000.00

Cost Per Unit ₱ 420.00 ₱ 420.00 ₱ 420.00 ₱ 420.00 ₱ 420.00 ₱ 420.00 ₱ 420.00 ₱ 420.00 ₱ 420.00 ₱ 420.00 ₱ 420.00 ₱ 420.00 ₱ 420.00

Gross profit ₱ 192,000.00 ₱ 200,000.00 ₱ 224,000.00 ₱ 240,000.00 ₱ 280,000.00 ₱ 344,000.00 ₱ 408,000.00 ₱ 520,000.00 ₱ 616,000.00 ₱ 768,000.00 ₱ 912,000.00 ₱ 1,056,000.00 ₱ 5,760,000.00

Fixed Expenses
Salaries ₱ 220,000.00 ₱ 220,000.00 ₱ 220,000.00 ₱ 220,000.00 ₱ 220,000.00 ₱ 220,000.00 ₱ 245,000.00 ₱ 245,000.00 ₱ 265,000.00 ₱ 301,000.00 ₱ 301,000.00 ₱ 301,000.00 ₱ 2,978,000.00

Marketing and Promotion ₱ 20,000.00 ₱ 20,000.00 ₱ 22,000.00 ₱ 22,000.00 ₱ 22,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 28,000.00 ₱ 28,000.00 ₱ 28,000.00 ₱ 30,000.00 ₱ 295,000.00

Digital Marketing ₱ 25,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 26,000.00 ₱ 26,000.00 ₱ 26,000.00 ₱ 28,000.00 ₱ 28,000.00 ₱ 28,000.00 ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00 ₱ 327,000.00

Utilities (Electricity etc.) ₱ 15,000.00 ₱ 15,000.00 ₱ 15,000.00 ₱ 15,000.00 ₱ 15,000.00 ₱ 15,000.00 ₱ 15,000.00 ₱ 15,000.00 ₱ 15,000.00 ₱ 15,000.00 ₱ 15,000.00 ₱ 15,000.00 ₱ 180,000.00

Customer Service ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00 ₱ 30,000.00 ₱ 360,000.00

Rent ₱ 25,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 25,000.00 ₱ 300,000.00
Total Expenses ₱ 335,000.00 ₱ 335,000.00 ₱ 337,000.00 ₱ 338,000.00 ₱ 338,000.00 ₱ 341,000.00 ₱ 368,000.00 ₱ 368,000.00 ₱ 391,000.00 ₱ 429,000.00 ₱ 429,000.00 ₱ 431,000.00 ₱ 4,440,000.00

Result
Net Profit/Loss -₱ 143,000.00 -₱ 135,000.00 -₱ 113,000.00 -₱ 98,000.00 -₱ 58,000.00 ₱ 3,000.00 ₱ 40,000.00 ₱ 152,000.00 ₱ 225,000.00 ₱ 339,000.00 ₱ 483,000.00 ₱ 625,000.00 ₱ 1,320,000.00
Gross Profit Margin 16% 16% 16% 16% 16% 16% 16% 16% 16% 16% 16% 16% 16%
Net Profit Margin -12% -11% -8% -7% -3% 0% 2% 5% 6% 7% 8% 9% 4%

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Practice Venture Worksheet CASH FLOW FORECAST

Cash flow forecast

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Starting Cash Position 370,000 227,000 92,000 -21,000 -119,000 -177,000 -174,000 -134,000 18,000 243,000 582,000 1,065,000

Cash Inflows
Total Sales 1,200,000 1,250,000 1,400,000 1,500,000 1,750,000 2,150,000 2,550,000 3,250,000 3,850,000 4,800,000 5,700,000 6,600,000

Cash Outflows
Cost Of Goods Sold 1,008,000 1,050,000 1,176,000 1,260,000 1,470,000 1,806,000 2,142,000 2,730,000 3,234,000 4,032,000 4,788,000 5,544,000
Operating Expenses 335,000 335,000 337,000 338,000 338,000 341,000 368,000 368,000 391,000 429,000 429,000 431,000

New Fixed Assets Purchased

Loan Payments
Total 1,343,000 1,385,000 1,513,000 1,598,000 1,808,000 2,147,000 2,510,000 3,098,000 3,625,000 4,461,000 5,217,000 5,975,000

Result
Change during month -143,000 -135,000 -113,000 -98,000 -58,000 3,000 40,000 152,000 225,000 339,000 483,000 625,000
Closing cash position 227,000 92,000 -21,000 -119,000 -177,000 -174,000 -134,000 18,000 243,000 582,000 1,065,000 1,690,000

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Practice Venture Worksheet BALANCE SHEET

Balance sheet forecast

The numbers reflected on this Balance Sheet are computed as of: As of Dec 31st

Assets ₹ 1,940,000
Current assets ₹ 1,690,000
Cash in hand ₹ 1,690,000
Petty cash ( cash lying in office )
Accounts Receivable ( Debtors )
Stock on hand (Inventory)
Other Assets
Fixed assets ₹ 120,000
Equipment for Quality Control ₹ 20,000
Furniture ₹ 100,000
Capital Investment ( Startup Capital ) ₹ 130,000

Liabilities ₹ 1,820,000
Current liabilities ₹ -
Accounts payable ( Creditors )
Interest payable
Any Other Amounts Owed
Long-term liabilities ₹ 200,000
Loans from Bank ₹ 200,000
Loans from Friends and Family

Networth of the Promoters ₹ 1,620,000

Reserves & Surplus ( Retained Earnings) ₹ 1,320,000
Equity Share Capital ₹ 300,000

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Practice Venture Worksheet BREAKEVEN ANALYSIS

Break-even analysis
Average sales price per unit ₱ 500.00 Breakeven Sales Level
Average cost of each unit ₱ 420.00 The breakeven sales level is the number of units that must
Gross Profit Margin ₱ 0.16 be sold in order to break even. This means that revenues are
Fixed costs for the year ₱ 4,440,000.00 equal to expenses. Any units sold beyond this quantity will
allow the company to generate profit.
Sales required to break even ₱ 27,750,000.00
Number of unit sales to break even ₱ 55,500.00 One of the best uses of breakeven analysis is to play with
various scenarios. For instance, if you can reduce the cost of
producing an item, what will be the impact on how many
Gross Margin % of Sales
units you need to sell. You can use many such "what if"
Gross Profit for the year ₱ 5,760,000.00 scenarios to arrive at the sales that your team can achieve.
Total Sales for the year ₱ 36,000,000.00 Formula:
Contribution Margin ₱ 0.16 Breakeven Point = Total Fixed Costs/(Gross Margin/Total
Gross Margin/Total Sales ₱ 0.16 Sales)

Total Fixed Expenses

Operating Expenses ₱ 4,440,000.00
Breakeven Sales (Annual)
Gross Margin % of Sales ₱ 0.16

Total Fixed Expenses ₱ 4,440,000.00

Yearly Breakeven Amount ₱ 27,750,000.00
Monthly Breakeven Amount ₱ 2,312,500.00

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 Year 1 Year 2 Year 3 Year 4 Year 5
Number of sales ₱ 72,000.00 ₱ 86,406.00 ₱ 103,687.20 ₱ 124,428.64 ₱ 149,274.37
Value of each sale (Contribution) ₱ 80.00 ₱ 80.00 ₱ 119.98 ₱ 119.98 ₱ 169.96
Average Price per unit ₱ 500.00 ₱ 500.00 ₱ 600.00 ₱ 600.00 ₱ 649.98
Average Cost per unit ₱ 420.00 ₱ 420.00 ₱ 480.02 ₱ 480.02 ₱ 480.02
Total revenue ₱ 36,000,000.00 ₱ 43,203,000.00 ₱ 62,212,320.00 ₱ 74,657,184.00 ₱ 97,025,353.71
Gross Profit ₱ 5,760,000.00 ₱ 6,912,480.00 ₱ 12,440,597.63 ₱ 14,929,197.08 ₱ 25,370,970.13

Capital costs
Land and building N.A. N.A. N.A. N.A. N.A.
Equipment ₱ 70,000.00 ₱ 100,000.00 ₱ 130,000.00 ₱ 150,000.00 ₱ 180,000.00
Product development costs ₱ 60,000.00 ₱ 100,000.00 ₱ 120,000.00 ₱ 150,000.00 ₱ 200,000.00
Others ₱ 30,000.00
Total ₱ 160,000.00 ₱ 200,000.00 ₱ 250,000.00 ₱ 300,000.00 ₱ 380,000.00

Expenses (Annual)
Salaries ₱ 2,978,000.00 ₱ 3,275,800.00 ₱ 3,603,380.00 ₱ 3,963,718.00 ₱ 4,360,089.80
Marketing and Promotion ₱ 295,000.00 ₱ 324,500.00 ₱ 356,950.00 ₱ 392,645.00 ₱ 431,909.50
Digital Marketing & Customer Services ₱ 327,000.00 ₱ 359,700.00 ₱ 395,670.00 ₱ 435,237.00 ₱ 478,760.70
Utilities (electricity etc.) ₱ 180,000.00 ₱ 198,000.00 ₱ 217,800.00 ₱ 239,580.00 ₱ 263,538.00
Office Supplies ₱ 360,000.00 ₱ 396,000.00 ₱ 435,600.00 ₱ 479,160.00 ₱ 527,076.00
Rent ₱ 300,000.00 ₱ 330,000.00 ₱ 363,000.00 ₱ 399,300.00 ₱ 439,230.00
Total ₱ 4,440,000.00 ₱ 4,884,000.00 ₱ 5,372,400.00 ₱ 5,909,640.00 ₱ 6,500,604.00

Earnings (EBITDA) ₱ 1,320,000.00 ₱ 2,028,480.00 ₱ 7,068,197.63 ₱ 9,019,557.08 ₱ 18,870,366.13

 APV = Average Purchase Value =
Year 2025 Unit Total revenue/Total number of
P & L/ unit Economics Year 2025 Step 1 purchases ₱ 500.00

Revenue APF = Average Purchase Frequency =

Number of purchases/ Number of
₱ 500.00 CAC ₱ 8.64 Step 2 unique customers 288.00
COGS ₱ 420.00 CLV ₱ 552,960.00 Average Customer Lifespan =
Step 3 1/Churnrate 24.00
Gross Profit ₱ 80.00 ARPU ₱ 144,000.00 Step 4 CLV =APV*APF*ACL*GM ₱ 552,960.00
Gross Profit Margin ₱ 0.16
Operating Costs ₱ 481.67
Operating Profit ₱ 18.33

Assumptions
customers
at the
beginning -
customers
Churn rate 0.041666667
at the end/
customers
at the
beginning

Customers at the
Beginning of month 100
Customers at the
End of month 2400
Activity
Update the Financial Planning and Forecasting Template
Accounts payable (AP) is an accounting entry that represents a company's obligation to pay off a short-term debt to its creditors or suppliers. For
Accounts Payable
example, when you purchase raw materials from your suppliers but pay after a month on receiving the invoice.

When customers buy your products or services on credit and pay after a certain amount of time, after receiving the invoice, it is called accounts
receivable. For example, think of your Internet or mobile bills. You use the services, mostly for a month, and then pay the money after you receive the
invoice.
Accounts
Receivable
Accounts receivable refers to the outstanding invoices a company has or the money clients owe the company. The phrase refers to accounts a business
has a right to receive because it has delivered a product or service. Accounts receivable or receivables represent a line of credit extended by a company
and normally have terms that require payments due within a relatively short time period, ranging from a few days to a fiscal or calendar year.

A company's balance sheet statement consists of its assets, liabilities, and shareholders' equity. Assets are what your venture owns, including cash,
equipment, and money receivable from customers (accounts receivables). For a cash-based business (a coffee shop, food delivery service), there won’t
be receivables because you collect money before or as soon as the product or service is delivered.

But for businesses that involve invoicing a customer (for example, you build websites and the customer will pay after you deliver the website and they are
happy with it). When you have sent out invoices and you are waiting for customers to pay you, then they are called receivables.
Assets
Assets are divided into current assets (those which can be converted to cash in one year or less) and long-term assets, which will take you longer than
one year to convert into cash.

A fixed asset is bought by a business for production or supply of goods or services. Examples of fixed assets can be equipment or a delivery truck that a
business has bought for itself. The term "fixed" means that these assets will not be used up or sold within the accounting year. A fixed asset typically has
a physical form and is reported on the balance sheet as property, plant, and equipment (PP&E).

A balance sheet reports your venture’s assets, liabilities, and shareholders' equity at a specific point in time. It is a financial statement that provides a
snapshot of what your venture owns and owes as well as the amount invested by your shareholders.
Balance Sheet
It is a snapshot, representing the state of your venture's finances at a moment in time. The balance sheet is based on the fundamental equation: Assets
= Liabilities + Equity

When entrepreneurs start their businesses, even before they start selling any of their products or services, they will have certain expenses. These are
fixed costs (like rent, electricity, salaries, etc.). Their first focus will be to at least sell enough to cover such expenses. Then, thay can focus on how to sell
more to make profits.

A break-even analysis is a useful tool to find out at what point your venture, or a new product or service you are thinking of introducing, will be profitable.
Break-Even It’s a financial calculation used to calculate the number of units you need to sell to at least cover your costs. When you break even, you are neither losing
Analysis money nor making money but all your costs have been covered.

You can use the break-even analysis to also assess the viability of a new business idea. Performing such a break-even calculation can give your team a
general sense of whether the idea is worth pursuing. If your analysis suggests that you would have to sell 8,000 t-shirts before you can make a profit and
it will require an investment of $10,000 to get going, you can make a more informed decision regarding whether that is possible (can you sell that many t-
shirts or can you raise $10,000 from investors etc.). It helps evaluate different business ideas and pick the one that you are comfortable with.

During the day-to-day operations of your venture, cash comes in (when customers pay you) and goes out (when you pay others such as vendors or
suppliers). Cash flow is the amount of cash that your venture receives or pays out by the way of payment(s) to creditors. Successful entrepreneurs
always keep an eye on their cash flows. Looking at how much money is coming in or going out, also called the cash flow analysis, is a good tool to
analyze the liquidity position of your venture. It gives a snapshot of the amount of cash coming into the business, from where, and the amount flowing
Cash Flow out.

Cash Flow Statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. It measures
how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating
expenses and the growth of the company.

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