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
₹1,183,900
Consultation fee(Accountants,Lawyer etc) ₹15,000
Business Registration fees ₹25,000
Website related(domain registration,wesite setup etc) ₹60,000
Licenses ₹4,000
Other startup cost ₹503,500

Capital Work in Progress ( Fixed Asset )

computers,printers,desks,etc ₹444,696

Starting Operations ( Budgeted )

Marketing and Promotional ₹20,000
Stationary and Office Supplies ₹11,704
Working capital ₹100,000

Start-up capital
Equity Investment(by team) 7,50,000
Loan and funds 10,00,000

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Practice Venture Worksheet COGS CALCULATOR

Delivery Cost
Commisions charges ₹ 1,000
Labour cost
Server charges 20
Cost of Goods Sold (COGS) Per Unit ₹ 1,020
9

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Sales Forecast
Jan Feb Mar Apr May Jun Jul
Product category
No of Units sold 80 100 120 150 180 200 250
Revenue 160000 200000 240000 300000 360000 400000 500000
Price Per Unit 2,000 2,000 2,000 2,000 2,000 2,000 2,000
COGS 81,600 102,000 122,400 153,000 183,600 204,000 255,000
Cost Per Unit 1,020 1,020 1,020 1,020 1,020 1,020 1,020
Aug Sep Oct Nov Dec Total

280 300 320 350 380 2710

560000 600000 640000 700000 760000 5420000
2,000 2,000 2,000 2,000 2,000 2,000
285,600 306,000 326,400 357,000 387,600 2,764,200
1,020 1,020 1,020 1,020 1,020 1,020
Practice Venture Worksheet

Salaries

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

Employee Salaries
CEO ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000
COO ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000
CMO ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000
CFO ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000 ₹ 20,000
EMP1 (15*2) ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000
EMP2 (10*2) ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000 ₹ 30,000
EMP3 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000
EMP4
₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000

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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 ### ### ₹ 240,000 ₹ 300,000 ₹ 360,000 ₹ 400,000 ₹ 500,000 ₹ 560,000 ₹ 600,000 ₹ 640,000 ₹ 700,000 ₹ 760,000 ₹ 5,420,000
No. of Customers 80 100 120 150 180 200 250 280 300 320 350 380 2710
Price Per Unit ₹ 2,000 ₹ 2,000 ₹ 2,000 ₹ 2,000 ₹ 2,000 ₹ 2,000 ₹ 2,000 ₹ 2,000 ₹ 2,000 ₹ 2,000 ₹ 2,000 ₹ 2,000 ₹ 2,000
Other Cash Receipts
Total Sales ₹ 160,000 ₹ 200,000 ₹ 240,000 ₹ 300,000 ₹ 360,000 ₹ 400,000 ₹ 500,000 ₹ 560,000 ₹ 600,000 ₹ 640,000 ₹ 700,000 ₹ 760,000 ₹ 5,420,000

COGS
Cost of Services ₹ 81,600 ### ₹ 122,400 ₹ 153,000 ₹ 183,600 ₹ 204,000 ₹ 255,000 ₹ 285,600 ₹ 306,000 ₹ 326,400 ₹ 357,000 ₹ 387,600 ₹ 2,764,200
Cost Per Unit ₹ 1,020 ₹ 1,020 ₹ 1,020 ₹ 1,020 ₹ 1,020 ₹ 1,020 ₹ 1,020 ₹ 1,020 ₹ 1,020 ₹ 1,020 ₹ 1,020 ₹ 1,020 ₹ 1,020

Gross profit ₹ 78,400 ₹ 98,000 ₹ 117,600 ₹ 147,000 ₹ 176,400 ₹ 196,000 ₹ 245,000 ₹ 274,400 ₹ 294,000 ₹ 313,600 ₹ 343,000 ₹ 372,400 ₹ 2,655,800

Fixed Expenses
Salaries ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 150,000 ₹ 1,800,000
Marketing and Promotion ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 10,000 ₹ 120,000
Digital Marketing ₹ 8,000 ₹ 8,000 ₹ 8,000 ₹ 8,000 ₹ 8,000 ₹ 8,000 ₹ 8,000 ₹ 8,000 ₹ 8,000 ₹ 8,000 ₹ 8,000 ₹ 8,000 ₹ 96,000
Utilities (Electricity etc.) ₹ 2,400 ₹ 2,400 ₹ 2,400 ₹ 2,400 ₹ 2,400 ₹ 2,400 ₹ 2,400 ₹ 2,400 ₹ 2,400 ₹ 2,400 ₹ 2,400 ₹ 2,400 ₹ 28,800
Customer Service ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ - ₹ -
Rent ₹ 25,000 ₹ 25,000 ₹ 25,000 ₹ 25,000 ₹ 25,000 ₹ 25,000 ₹ 25,000 ₹ 25,000 ₹ 25,000 ₹ 25,000 ₹ 25,000 ₹ 25,000 ₹ 300,000
Total Expenses ₹ 195,400 ₹ 195,400 ₹ 195,400 ₹ 195,400 ₹ 195,400 ₹ 195,400 ₹ 195,400 ₹ 195,400 ₹ 195,400 ₹ 195,400 ₹ 195,400 ₹ 195,400 ₹ 2,344,800

Result
Net Profit/Loss ₹ -117,000 ₹ -97,400 ₹ -77,800 ₹ -48,400 ₹ -19,000 ₹ 600 ₹ 49,600 ₹ 79,000 ₹ 98,600 ₹ 118,200 ₹ 147,600 ₹ 177,000 ₹ 311,000
Gross Profit Margin 49% 49% 49% 49% 49% 49% 49% 49% 49% 49% 49% 49% 49%
Net Profit Margin -73% -49% -32% -16% -5% 0% 10% 14% 16% 18% 21% 23% 6%

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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 -1,183,900 -1,300,900 -1,398,300 -1,476,100 -1,524,500 -1,543,500 -1,542,900 -1,493,300 -1,414,300 -1,315,700 -1,197,500 -1,049,900

Cash Inflows
Total Sales 160,000 200,000 240,000 300,000 360,000 400,000 500,000 560,000 600,000 640,000 700,000 760,000

Cash Outflows
Cost Of Goods Sold 81,600 102,000 122,400 153,000 183,600 204,000 255,000 285,600 306,000 326,400 357,000 387,600
Operating Expenses 195,400 195,400 195,400 195,400 195,400 195,400 195,400 195,400 195,400 195,400 195,400 195,400
New Fixed Assets Purchased
Loan Payments
Total 277,000 297,400 317,800 348,400 379,000 399,400 450,400 481,000 501,400 521,800 552,400 583,000

Result
Change during month -117,000 -97,400 -77,800 -48,400 -19,000 600 49,600 79,000 98,600 118,200 147,600 177,000
Closing cash position -1,300,900 -1,398,300 -1,476,100 -1,524,500 -1,543,500 -1,542,900 -1,493,300 -1,414,300 -1,315,700 -1,197,500 -1,049,900 -872,900

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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 ₹ 855,696
Current assets ₹ -872,900
Cash in hand ₹ -872,900
Petty cash ( cash lying in office )
Accounts Receivable ( Debtors )
Stock on hand (Inventory)
Other Assets
Fixed assets ₹ 544,696
Equipment for Quality Control ₹ 444,696
Furniture ₹ 100,000
Capital Investment ( Startup Capital ) ₹ 1,183,900

Liabilities #VALUE!
Current liabilities ₹ -
Accounts payable ( Creditors )
Interest payable
Any Other Amounts Owed
Long-term liabilities #VALUE!
Loans from Bank #VALUE!
Loans from Friends and Family

Networth of the Promoters #VALUE!

Reserves & Surplus ( Retained Earnings) ₹ 311,000
Equity Share Capital 7,50,000

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Practice Venture Worksheet BREAKEVEN ANALYSIS

Break-even analysis
Average sales price per unit ₹ 2,000 Breakeven Sales Level
Average cost of each unit ₹ 1,020
The breakeven sales level is the number of units that must
Gross Profit Margin 49%
be sold in order to break even. This means that revenues are
Fixed costs for the year ₹ 2,344,800 equal to expenses. Any units sold beyond this quantity will
Sales required to break even ₹ 4,785,306 allow the company to generate profit.
Number of unit sales to break even 2393
One of the best uses of breakeven analysis is to play with
Gross Margin % of Sales various scenarios. For instance, if you can reduce the cost of
producing an item, what will be the impact on how many
Gross Profit for the year ₹ 2,655,800 units you need to sell. You can use many such "what if"
Total Sales for the year ₹ 5,420,000 scenarios to arrive at the sales that your team can achieve.
Contribution Margin 49%
Formula:
Gross Margin/Total Sales 49%
Breakeven Point = Total Fixed Costs/(Gross Margin/Total
Total Fixed Expenses Sales)
Operating Expenses ₹ 2,344,800
Breakeven Sales (Annual)
Gross Margin % of Sales 49%
Total Fixed Expenses ₹ 2,344,800
Yearly Breakeven Amount ₹ 4,785,306
Monthly Breakeven Amount ₹ 398,776

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 Year 1 Year 2 Year 3 Year 4
Number of sales 2710 3258 3910 4696
Value of each sale (Contribution) ₹ 980 ₹ 980 ₹ 1,234 ₹ 1,234
Average Price per unit ₹ 2,000 ₹ 2,000 ₹ 2,400 ₹ 2,400
Average Cost per unit ₹ 1,020 ₹ 1,020 ₹ 1,166 ₹ 1,166
Total revenue ₹ 5,420,000 ₹ 6,516,000 ₹ 9,383,040 ₹ 11,269,248
Gross Profit ₹ 2,655,800 ₹ 3,192,840 ₹ 4,825,393 ₹ 5,795,408

Capital costs
Land and building N.A. N.A. N.A. N.A.
Equipment
Product development costs
Others
Total

Expenses (Annual)
Salaries ₹ 1,800,000 ₹ 1,980,000 ₹ 2,178,000 ₹ 2,395,800
Marketing and Promotion ₹ 120,000 ₹ 132,000 ₹ 145,200 ₹ 159,720
Digital Marketing & Customer Services ₹ 96,000 ₹ 105,600 ₹ 116,160 ₹ 127,776
Utilities (electricity etc.) ₹ 28,800 ₹ 31,680 ₹ 34,848 ₹ 38,333
Office Supplies ₹ - ₹ - ₹ - ₹ -
Rent ₹ 300,000 ₹ 330,000 ₹ 363,000 ₹ 399,300
Total ₹ 2,344,800 ₹ 2,579,280 ₹ 2,837,208 ₹ 3,120,929

Earnings (EBITDA) ₹ 311,000 ₹ 613,560 ₹ 1,988,185 ₹ 2,674,479

Year 5
5595
₹ 1,434
₹ 2,600
₹ 1,166
₹ 14,545,575
₹ 8,023,597

N.A.

₹ 2,635,380
₹ 175,692
₹ 140,554
₹ 42,166
₹ -
₹ 439,230
₹ 3,433,022

₹ 4,590,575
 Year 2024 Unit
P & L/ unit Economics Year 2024 Step 1

Revenue
₹ 2,000 CAC ₹ 80 Step 2
COGS ₹ 1,020 CLV ₹ -25
Step 3
Gross Profit ₹ 980 ARPU ₹ 21,680 Step 4
Gross Profit Margin 49%
Operating Costs ₹ 1,885
Operating Profit ₹ 114.76

Assumptions
customers
at the
beginning -
customers
Churn rate -433.333333
at the end/
customers
at the
beginning

Customers at the
Beginning of month 15
Customers at the
End of month 80
APV = Average Purchase Value =
Total revenue/Total number of
purchases ₹ 2,000
APF = Average Purchase Frequency =
Number of purchases/ Number of
unique customers 10.84
Average Customer Lifespan =
1/Churnrate 0.00
CLV =APV*APF*ACL*GM ₹ -25
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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