Transcript from operations

Instructions
Marketing
Operations
Financials
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presentation.
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You must cover Marketing, Operations, and Financials in 15
minutes to allow 15 minutes for discussion. PRACTICE
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Limit the number of slides you present – pull out those that
are not critical to explain your venture
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Do not dwell on one topic – talk to all thoroughly and quickly
to be sure you present a complete picture of your venture.
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Instructions
Marketing
Operations
Financials
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Marketing
Operations
Financials
Venture Name Here
Venture Team Member Names Here
Venture Description
Marketing
Operations
Financials
Company: Insert the complete first sentence of
your venture description.
First Product: Describe your first product (service).
Target Market: Describe the target market for first
product (service) and the size of this market.
Future Products: Briefly describe future products
(services)
(Use your Idea Fair slide here)
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Marketing
Operations
Financials
Operations
Venture Name Here
Operations Strategy
Marketing
Operations
Financials
Materials: What are the important goods and raw materials you
will need to create and deliver your products or services? Be
sure to address:
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Prices, shipping costs, and payment terms;
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Minimum order sizes (is there a minimum required order
size?); and
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Estimated time between orders and deliveries. Your
estimates should reflect the time required for:
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Subcontractors to obtain needed materials;
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Manufacturing (if relevant); and
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Shipping from subcontractor to your firm
(Modify the above elements if you need to better reflect the nature of your
operations)
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Operations Strategy
Marketing
Operations
Financials
Production:
•Given your revenue estimates, how much will it cost
you to produce the products or deliver the services that
will generate these revenues? Be sure and include the
cost of packaging.
•How many labor hours will be required to produce
these products or deliver these services?
•How much will this labor cost?
(These are recurring variable costs – not your startup or one time
product development costs)
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Operations Strategy
Marketing
Operations
Financials
If You Are Outsourcing Production or Services:
•What is the rationale for outsourcing?
•What are the costs (including costs of changes in your
product line & the costs of vendor management)?
•How will you ensure quality?
•Timely delivery (production & shipping times)
•What will you do if your supplier can’t deliver or goes
bankrupt? Plan B?
•How will you protect your intellectual property?
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Operations Strategy
Marketing
Operations
Financials
Order Fulfillment
• How will you fulfill orders from customers?
• How much staff time will order fulfillment require?
• What is the cost of preparing goods for shipping
(materials and labor)?
• What are shipping costs?
• If you outsource order fulfillment, how much will
this cost? How quickly will orders be filled?
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Operations Strategy
Marketing
Operations
Financials
Customer Service
• What customer services will you provide (e.g.,
training, user support, and handling complaints,
returns, and repairs)?
• How much will the provision of these services cost?
• How much staff time will these services require per
month?
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Operations Strategy
Marketing
Operations
Financials
Team Members
• Backgrounds
• Fit
• Roles and Responsibilities
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Marketing
Operations
Financials
Financial Model
Venture Name Here
Venture Team Member Names Here
Key Assumptions
Marketing
Operations
Financials
1. Size of target market + % of customers aware of your venture +
% of those aware who you expect will buy from you
2. Your costs to produce a salable unit of your solution, the price
your customer pays, the gross margin you get
3. The quantity of product/services you can make ready to sell
each quarter, each year
4. Your costs to sell product in Year 1/2/3/4/5
5. Your sales growth each year. How fast you will reach new
customers, how much you will grow revenue for each
customer
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Five Year Revenue Forecast
Marketing
Operations
Financials
For each revenue stream, forecast sales monthly for the first five years
(monthly for Years 1 and 2, quarterly for Year 3, annually for Years 4 and 5).
1) List your total number of customers in each time period.
2) List the total units sold of each product or service in each time
period.
3) Compute dollar sales of each product or service in teach time period
Finally, for each time period, compute total revenues by summing the
revenues from each of your revenue streams.
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Marketing
Operations
Financials
Startup Expenses
DEPRECIABLE ASSETS
Machinery/Equip/Office
Computer & Related Equip
Buildings
Leasehold Improvements
Other
TOTAL
EXPENSE ITEMS (short term)
Supplies
Legal & Accounting
Rentals/Leases/Utilities
Temp Employees/Contractors
TOTAL
WORKING CAPITAL (initial current assets)
Supplies Inventory
Product Inventories
Prepaid Expenses
TOTAL
TOTAL STARTUP EXPENSES
Operating Exp x 4 Months
Prod/Serv Cost of Sales x 2 Months
TOTAL
ACCOUNTS PAYABLE
Short Term Debt
Long Term Debt
Equity Investment Before Pmt of Expense Items
TOTAL
Your one-time development costs
for your market ready solution
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Equipment
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Materials
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Employee time
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Outsourced services for product
development
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Rent & facility costs
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Web design / software
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Other things ?
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Marketing
Operations
Financials
Income Statement
Year 1
Year 2
Year 3
Year 4
Year 5
NET SALES
DIRECT COSTS
CONTRIBUTION MARGIN
CONTRIBUTION MARGIN %
GENERAL & ADMIN COSTS
Salaries/Consult/Fees
Rent
Marketing
All Other Expenses
Total G&A Expenses
EBITDA
EBITDA %
Breakeven Revenue
Cumulative Net Income
Cum Net Inc – StartUp Costs
Non Discount Payback (Yrs)
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Marketing
Operations
Financials
Balance Sheet
Year 1
Year 2
Year 3
Year 4
Year 5
ASSETS
Ending Cash
Accounts Receivable
Inventory
Total Current Assets
Real Estate
Equip & Deprec Assets
Net Fixed Assets
TOTAL ASSETS
LIABILITIES
Accounts Payable
Short Term Debt
Long Term Debt
Total Liabilities
OWNER’S EQUITY
Invest by Owner
Retained Earnings
Net Equity
TOTAL LIAB + OWN EQTY
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Marketing
Operations
Financials
Statement of Cashflows
Year 1
Year 2
Year 3
Year 4
Year 5
FROM OPERATIONS
Net Income
Change in Acct Receivables
Change in Acct Payable
Change in Prepaid Exp
Change in Inventory
Depreciation
Net From Operations
FROM INVESTING
Purch of Real Estate
Purch of Equip
Net from Investing
FROM FINANCING
Invest by Owners
Short Term Debt
Long Term Debt
Net From Financing
NET CASH
Beginning Cash
Ending Cash
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