Need Section A and excel sheet additionally

Need Section A;

ECA REPORT FORMAT [Name of Company] [Date]

Table of Contents

1.

Executive Summary (Maximum 600 words) (indicate word count)

8 marks

2.

The Business Model

30 marks

2.1 The Business Model Canvas

2.2 Analysis of Each of the Business Model Canvas Components based on Research Data

3.

Financial Analysis

18 marks

3.1 3-Year Pro-forma Income Statement (1st to 3rd year on monthly basis)

3.2 3-Year Pro-forma Cash Flow Statement (1st to 3rd year on monthly basis)

3.3 Key Assumptions Made and Excel File Attachment (as icon)

4.

Investment Proposal

9 marks

4.1 Total Investment Required, Proportion and Justification for Equity-Debt Ratio required from Investor

4.2 Expected Financial Returns:

Weighted Average Cost of Capital (WACC)* Valuation (based on the discounted cash flow method) Net Present Value (NPV) Internal Rate of Return (IRR)*

(Cost of Equity at 12% (Re), Cost of Debt (Rd) at 8% and Corporate Tax Rate (Tc) at 17%) *correct to 2 decimal places

4.3 Percentage Shareholding Offered to Investor

ECA Written Report Total

BUS357
End-of-Course Assessment – July Semester 2024
Starting and Managing a Business
INSTRUCTIONS TO STUDENTS:
1. This End-of-Course Assessment paper comprises 12 pages (including the
cover page).
2. You are to include the following particulars in your submission: Course Code,
Title of the ECA, SUSS PI No., Your Name, and Submission Date.
3. Late submission will be subjected to the marks deduction scheme. Please refer
to the Student Handbook for details.
IMPORTANT NOTE
ECA Submission Deadline: Monday, 28 October 2024 12:00 pm
BUS357 Copyright © 2024 Singapore University of Social Sciences (SUSS)
ECA – July Semester 2024
Page 1 of 12
ECA Submission Guidelines
Please follow the submission instructions stated below:
A – What Must Be Submitted
You are required to submit the following THREE (3) items for marking and grading:
• A Report (you should submit this item first as it carries the highest weightage).
• A Video Presentation: refer to Canvas T/TG/RESIT course site > Assignments
> ECA_VIDEO for the step-by-step guide on how to submit the video.
• The set of PowerPoint slides, converted to PDF, upon which the video
presentation is based.
Please verify your submissions after you have submitted the above THREE (3) items.
B – Submission Deadline
• The THREE (3) items of Report, Video and Presentation Summary are to be
submitted by 12 noon on the submission deadline.
• You are allowed multiple submissions till the cut-off date for each of the THREE
(3) items.
• Late submission of any of the THREE (3) items will be subjected to markdeduction scheme by the University. Please refer to Section 5.2 Para 2.4 of the
Student Handbook.
C – How the (3) Items Should Be Submitted
• The Report: submit online to Canvas via TurnItIn (for plagiarism detection)
• The Video: submit online to Canvas (refer to Canvas T/TG/RESIT course site >
Assignments > ECA_VIDEO for the step-by-step guide on how to submit the
video)
• The Presentation Summary:
o Submit online to Canvas via TurnItIn (PPT must be converted to PDF and
submission is in PDF only)
o The PPT must contain at least 20 words
BUS357 Copyright © 2024 Singapore University of Social Sciences (SUSS)
ECA – July Semester 2024
Page 2 of 12
• Avoid using a public WiFi connection for submitting large video files. If you are
using public wireless (WiFi) connection (e.g. SG Wireless at public areas), you
might encounter a break in the connection when sending large files.
D – Additional guidelines on file formatting are given as follows
1. Report
2. Video
3. Presentation
Summary
•
Please ensure that your Microsoft Word document is generated
by Microsoft Word 2016 or higher.
•
The report must be saved in .docx format.
•
Refer to Canvas T/TG/RESIT course site > Assignments >
ECA_VIDEO for the step-by-step guide on how to submit the
video.
•
Remember to click on the “Submit Assignment” button after
recording/uploading your video in Canvas.
•
Ensure that your video is submitted by clicking on “Details” to
verify the video. Click on the “Play” button to confirm that the
submitted video can be played.
•
Showing your PowerPoint projection in the background is NOT
required.
•
Time Duration: a minimum of 3 minutes and a maximum of 6
minutes.
•
Your PowerPoint presentation must contain at least 20 words.
•
Please ensure that your PowerPoint presentation is converted to
PDF format before you submit.
•
The maximum number of slides is fifteen (15).
•
Please do NOT download and use PowerPoint slide design
templates from the Internet.
BUS357 Copyright © 2024 Singapore University of Social Sciences (SUSS)
ECA – July Semester 2024
Page 3 of 12
E – Please be Aware of the Following
Submission in hardcopy or any other means not given in the above guidelines will not
be accepted. You do not need to submit any other forms or cover sheets (e.g. form
ET3) with your ECA.
You are reminded that electronic transmission is not immediate. The network traffic
may be particularly heavy on the date of submission deadline and connections to the
system cannot be guaranteed. Hence, you are advised to submit your work early.
Canvas will allow you to submit your work late but your work will be subjected to
the mark-deduction scheme. You should therefore not jeopardise your course result
by submitting your ECA at the last minute.
It is your responsibility to check and ensure that your files are successfully submitted
to Canvas.
F – Plagiarism and Collusion
Plagiarism and collusion are forms of cheating and are not acceptable in any form in
a student’s work, including this ECA. Plagiarism and collusion are taking work done
by others or work done together with others respectively and passing it off as your
own. You can avoid plagiarism by giving appropriate references when you use other
people’s ideas, words or pictures (including diagrams). Refer to the APA Manual if
you need reminding about quoting and referencing. You can avoid collusion by
ensuring that your submission is based on your own individual effort.
The electronic submission of your ECA will be screened by plagiarism detection
software. For more information about plagiarism and collusion, you should refer to
the Student Handbook (Section 5.2.1.3). You are reminded that SUSS takes a tough
stance against plagiarism or collusion. Serious cases will normally result in the
student being referred to SUSS’s Student Disciplinary Group. For other cases,
significant mark penalties or expulsion from the course will be imposed.
G – Use of Generative AI Tools (Allowed)
The use of generative AI tools is allowed for this assignment.
• You are expected to provide proper attribution if you use generative AI tools
while completing the assignment, including appropriate and disciplinespecific citation, a table detailing the name of the AI tool used, the approach
to using the tool (e.g. what prompts were used), the full output provided by the
tool, and which part of the output was adapted for the assignment;
• To take note of section 3, paragraph 3.2 and section 5.2, paragraph 2A.1 (Viva
Voce) of the Student Handbook;
BUS357 Copyright © 2024 Singapore University of Social Sciences (SUSS)
ECA – July Semester 2024
Page 4 of 12
• The University has the right to exercise the viva voce option to determine the
authorship of a student’s submission should there be reasonable grounds to
suspect that the submission may not be fully the student’s own work.
• For more details on academic integrity and guidance on responsible use of
generative AI tools in assignments, please refer to the TLC website for more
details;
• The University will continue to review the use of generative AI tools based on
feedback and in light of developments in AI and related technologies.
Video Presentation Evaluation Criteria
Note: Students will be assessed on the quality of the presentation and not the quality of
the video recording. However, the recording is expected to have video and audio clarity.
Showing your PowerPoint projection in the background is NOT required.
Organisation of Presentation
•
Logical flow of presentation
/8
Posture & Body Language
•
Posture: Standing, straight back etc…
•
Body language: Hand gestures supporting oral arguments, etc…
/5
Eye-Contact
•
Looking at the video camera
•
No reading of slides or notes or cue cards
/5
Pace & Articulation
•
Pace: Speaks neither too fast nor too slow
•
Articulation: Oral expression is clear and confident in the presentation.
/7
TOTAL
/25
Presentation Summary Evaluation Criteria
Format and Style of Slides
•
Layout, clarity of text elements, colour blends, graphical enhancements
/3
Clarity and Coherence
/4
•
Proper flow – title page, introduction, body, results, recommendations / discussion
points, conclusion/summary; quick to understand, free from grammatical errors
/3
Creativity
•
Ability to use creative elements to value-add to the presentation so as to enhance
understanding and clarity of difficult concepts
TOTAL
BUS357 Copyright © 2024 Singapore University of Social Sciences (SUSS)
ECA – July Semester 2024
/10
Page 5 of 12
Important Note: Grading of TMA/GBA/ECA Submissions
Marks awarded to your assignment are based on the following guidelines:
1. 80% of the marks are allocated to the content of your answers:
• The marks awarded to what your answers cover depend on the extent to which they
cover the key points that correctly and comprehensively address each question.
• The key points should be supported by evidence drawn from course materials and,
wherever relevant, from other credible sources.
2. 20% of the marks are allocated to the presentation of your answers:
Wherever applicable, the marks awarded to how your answers are presented depend on the
extent to which your answers:
• form a sound reasoning by developing those key points in a clear, logical and
succinct manner;
• provide proper and adequate in-text citations and referencing to content drawn from
course materials and other credible sources;
• strictly follow APA formatting and style guidelines[1] , in particular for:
• in-text citations and end-of-report references;
• the identification of figures and tables;
• use, wherever relevant, the specialised vocabulary and terminology commonly used
in discussions about the topic(s) covered by each question;
• provide a reference or bibliography at the end of the main report;
• include the less relevant details in an Appendix;
• use sentence constructions that are grammatically and syntactically correct;
• are free from spelling mistakes; present the workings, numerical formulations and
results in a logical manner that follows the APA formatting and style guidelines;
• design and present graphs, diagrams and plots that follow the APA formatting and
style guidelines;
• are highly original;
• have proper formatting, which may:
• include a properly formatted cover page;
• respect the answer length/word count set out in the assignment
guidelines, if any is prescribed;
• present answers in paragraphs with proper spacing and page margins;
• include page numbers and appendices, if necessary.
You can find a short tutorial on the APA formatting and style guidelines here:
https://apastyle.apa.org/index.
Additional details (pertaining to tables and figures) can be found here: https://is.gd/O4vDdT
[1]
BUS357 Copyright © 2024 Singapore University of Social Sciences (SUSS)
ECA – July Semester 2024
Page 6 of 12
(Full marks: 100)
Section A (65 marks)
Answer all questions in this section.
Question 1
Singapore’s population is ageing rapidly, with the proportion of citizens aged 65 and
above increasing to 19.1 per cent in 2023. By 2030, around one in four citizens will be
aged 65 and above.[1]
Healthcare will account for the bulk of increases in government social spending by
2030 as Singapore’s population ages. PM’s National Rally Speech in August 2023
stated that Singapore must be prepared to take better care of the elderly, including
providing more medication subsidies to reduce the burden of healthcare costs on older
Singaporeans and their families[1]. The 2022 “Population In Brief” report mentioned
that Singapore must also be a home where seniors can age meaningfully with
confidence and peace of mind. The report also cited Singapore’s efforts to help its
citizens take charge of their health and achieve healthy longevity.[2]
In response to the multi-faceted challenges of a rapidly aging population, the
Government launched Healthier SG – a national initiative by the Ministry of Health
(MOH) that focuses on a preventive approach towards long term healthcare.[3]
Singaporeans can take proactive steps to manage their health, prevent the onset of
chronic diseases and have strong support to lead healthier lifestyles. The Minister for
Health said that as of May 2024, there are 890,000 persons enrolled in this initiative
that links individuals to their family doctors for health needs, provides all rounded
support to lead healthier lifestyles and see better health outcomes, and to empower
everyone to take charge of their health[4]. With an ecosystem of support for better
health, individuals have access to more physical and health-promoting activities best
suited for their needs. Seniors can also approach the Active Ageing Centres for health
activities and programmes recommended by their regional health clusters and their
family doctor.
Against this backdrop of aging population and elder care, you see a good opportunity
to start a new business in the form of a gym that specifically targets seniors from 50
years and above. The typical gyms are frequented by the younger segment of the
population, and you felt that there is an unaddressed market for seniors, who might feel
intimidated by the presence of younger and fitter gym-goers. Furthermore, you also
perceived that there must be appropriate level of support from the personal trainers and
staff so that they could provide relevant advice and care to the seniors.
In addition, the other potential market segment that you could target are individuals
who has recovered from ailments or surgery but require some level of rehabilitative
exercise with some supervision.
Starting and operating a gym requires significant investment with good financial and
business planning before commencement. As there is a certain level of initial capital
investment required, you have identified and approached a potential investor, and he is
BUS357 Copyright © 2024 Singapore University of Social Sciences (SUSS)
ECA – July Semester 2024
Page 7 of 12
agreeable to the business concept. He would be able to inject funds into the venture in
a combination of equity capital and interest-bearing personal loan. You will need to
prepare a business proposal, and a short presentation to the investor to formally seek
funding and offer some equity in return.
[Adapted from The Straits Times articles and government websites. See reference list
below.]
Required:
You are to construct a business model canvas to analyse the opportunity for launching
a gym for seniors.
In your report, you should appraise in detail each component of the business model
canvas.
The report should also include a detailed financial analysis to demonstrate the financial
viability of the venture.
References
1. Teng, T. (2023, September 30). Record number of citizen marriages in 2022;
S’pore’s population ageing rapidly. The Straits Times. Record number of citizen
marriages in 2022; S’pore’s population ageing rapidly | The Straits Times
2. National Population and Talent Division, Strategy Group, Prime Minister’s Office,
Singapore Department of Statistics, Ministry of Home Affairs, Immigration &
Checkpoints Authority and Ministry of Manpower (2023). Population in Brief
2023. https://www.strategygroup.gov.sg/files/mediacentre/publications/population-in-brief-2023.pdf
3. Ministry
of
Health,
Singapore
(n.d.). What
is
Healthier
SG? https://www.healthiersg.gov.sg/about/what-is-healthier-sg/
4. Chin, S. F. (2024, May 18). Nearly 890,000 sign-ups so far for Healthier SG, more
Malay participation needed: Ong Ye Kung. The Straits Times.
https://www.straitstimes.com/singapore/nearly-890000-sign-ups-so-far-forhealthier-sg-more-malay-participation-needed-ong-ye-kung
Guidelines and Assumptions
1. The primary revenue generating activity of the proposed business must be for an
independent gym or fitness centre. Operating as a franchised unit is not allowed.
2. The proposed location for the seniors’ gym will be a ground floor HDB shop unit at
Blk 433 Clementi Ave 3 (https://maps.app.goo.gl/4KJAHFNcLCMJ7gn18). There
are two sizes of shops available: 650 sqf at monthly rental cost of $14,000, or 450
sqf at monthly rental cost of $8,200. These two shops are non-adjoining, and you
intend to select and rent one unit only. Each shop is unfurnished and in ready-tomove-in condition. There is a minimum lease period of three (3) years.
BUS357 Copyright © 2024 Singapore University of Social Sciences (SUSS)
ECA – July Semester 2024
Page 8 of 12
3. In deciding the space required, you need to consider the current requirements of the
proposed business and the maximum foreseeable operating capacity of the business.
Changes to the space leased during the tenancy term is not permitted.
4. Rental deposit required is equivalent to two (2) months’ rental, to be paid together
with the first month’s rental upon commencement of the lease. Sub-letting is not
allowed.
5. The first month of operations is the gestation period of the new business, e.g., staff
recruitment, renovation, staff training, etc. The first revenue can only be received by
the new business from the second month onwards.
6. The depreciation for any capital expenditure is a straight line over three (3) years.
7. You will invest $80,000 of the Total Investment Required (TIR) as your Equity
Capital, with the balance of the TIR to be funded by the potential investor in a
combination of equity capital and interest-bearing personal loan. The investor stated
that he is only willing to invest between 40% to 60% of the Balance of the TIR as
his Equity Capital. Therefore, you will need to propose the amount and subsequently
determine the corresponding shareholding offered to the investor.
The remaining shortfall in the Balance of the TIR will be extended as a loan from
the investor to the business at the start, with only interest payable each month (see
further for Cost of Debt) and the full repayment of the principal on the 36th month.
8. The following Cost of Capital (Weighted Average Cost of Capital, WACC) formula
must be used (no marks will be awarded if any other WACC formula is used):
WACC
=
E
V
x Re
+
D
V
x Rd
x (1 – T c )
• Re = Cost of Equity
• Rd = Cost of Debt
• E = Funding from Equity
• D = Funding from Debt / Loans
• V = E + D (i.e., total funding)
• E/V = Percentage of Financing that is Equity
• D/V = Percentage of Financing that is Debt
• Tc = Corporate Tax Rate
9. Specific Tax Exemptions, Credits and Reliefs (e.g., Tax Exemption Scheme for New
Start-Up Companies), Concessions, Rebates, Loss-Carrying Forward and similar
Schemes are to be ignored in computations.
10. The financial statements, together with the key major assumptions made (e.g., basis
for sales forecast, budget for major cost items, etc.), must be included in the main
report. Other information and supporting evidence can be placed in the Appendix.
BUS357 Copyright © 2024 Singapore University of Social Sciences (SUSS)
ECA – July Semester 2024
Page 9 of 12
11. The financial statements must be inserted and properly resized as an embedded
object clearly displayed in MS Word (use “INSERT > OBJECT” function) and NOT
as a picture, image, link to an external document or as an attachment. The embedded
Excel object must show the monthly figures with a total for the year. In addition, the
same Excel file with the financial statements and assumptions and should be attached
as an icon to the document in the main report.
12. The report should be formatted with 2.54cm (1-inch) margin all around, typed in
Times New Roman 12-points with 1.5 line spacing for the paragraphs. All graphs,
tables and images must be numbered and titled.
13. You must follow the report format provided below with answers for each section
clearly demarcated by its respective sub-header numbering and title.
14. In addition to the course materials provided, you are free to conduct library and field
research.
15. Any assumptions made must be supported by appropriate references shown in the
appendices. All sources must be properly cited in the text and included in the
reference list.
16. The main report, including the Executive Summary, must not exceed 3,000 words –
excluding cover page, Table of Contents, Appendices and reference list. Marks will
be deducted for excessive length.
BUS357 Copyright © 2024 Singapore University of Social Sciences (SUSS)
ECA – July Semester 2024
Page 10 of 12
ECA REPORT FORMAT
[Name of Company]
[Date]
1.
2.
3.
4.
Table of Contents
Executive Summary (Maximum 600 words)
(indicate word count)
8 marks
The Business Model
2.1
The Business Model Canvas
2.2
Analysis of Each of the Business Model Canvas Components
based on Research Data
Financial Analysis
3.1
3-Year Pro-forma Income Statement
st
(1 to 3rd year on monthly basis)
3.2
3-Year Pro-forma Cash Flow Statement
st
(1 to 3rd year on monthly basis)
3.3
Key Assumptions Made and Excel File Attachment (as icon)
Investment Proposal
4.1
Total Investment Required, Proportion and Justification for
Equity-Debt Ratio required from Investor
4.2
Expected Financial Returns:
•
•
Weighted Average Cost of Capital (WACC)*
Valuation (based on the discounted cash flow method)
•
•
Net Present Value (NPV)
Internal Rate of Return (IRR)*
30 marks
18 marks
9 marks
(Cost of Equity at 12% (R e ), Cost of Debt (R d ) at 8% and
Corporate Tax Rate (T c ) at 17%)
*correct to 2 decimal places
4.3
Percentage Shareholding Offered to Investor
ECA Written Report
BUS357 Copyright © 2024 Singapore University of Social Sciences (SUSS)
ECA – July Semester 2024
Total
=
65 marks
Page 11 of 12
Section B (25 marks)
Answer all questions in this section.
Question 2
Practise making a pitch presentation by preparing a video recording of the presentation
of at least 3 minutes but not exceeding 5 minutes. Refer to Canvas T/TG/RESIT course
site > Assignments > ECA_VIDEO for the step-by-step guide on how to submit the
video.
Section C (10 marks)
Answer all questions in this section.
Question 3
Prepare a set of PowerPoint presentation slides upon which the video presentation is
based. Please note that the PowerPoint must be converted to PDF before submission to
Canvas.
—– END OF ECA PAPER —–
BUS357 Copyright © 2024 Singapore University of Social Sciences (SUSS)
ECA – July Semester 2024
Page 12 of 12
[ASSUMPTIONS, FORECASTING, BUDGETING] + [PRO-FORMA INCOME STATEMENT, CASHFLOW & BALANCE SHEET]
INSTRUCTIONS
1. In order to fully utilise the benefits of this Excel spreadsheet, you should be familiar with basic Excel functions such as the use of formulas, AutoSum function, fixing of absolute cell reference with the ‘$’ sign, etc.
2. Take note that some of the cells contain formulas and reference link to other cells.
3. Refer to the lecture slides for the assumptions given. Make additional assumptions of your own where necessary.
4. Cells highlighted in ORANGE in the various worksheets require your inputs.
5. Year 2 and Year 3 templates are provided for your own use (assignments).
CHECKLIST:
(1) Initial Investment
(2) CapEx & Dep(reciation) & Amort(ization)
(3) Sales & COGS
(4) Manpower & Commission
(5) Operating Expenses
(6) Income Statement
(7) Cashflow Statement
(8) Balance Sheet
INSTRUCTIONS
[ASSUMPTIONS, FORECASTING, BUDGETING] + [PRO-FORMA INCOME STATEMENT, CASHFLOW & BALANCE SHEET]
SECTION: (1) INITIAL INVESTMENT
[1A] EQUITY FINANCING
Amount
Entrepreneur’s Own Investment
Angel Investors’ Investment
Total EQUITY Financing
[1B] DEBT FINANCING
$0.00
Amount
Loans from #1-Bank
Duration in
years
Interest
% p.a.
Monthly
Interest
$0.00
Loans from #2-Investors
Total DEBT Financing | Monthly Interest expense
$0.00
$0.00
NOTE: EQUITY and DEBT financing amounts (including Duration & Interest rate % p.a.) here are assumptions made by the Teaching Team. You will need to decide on the actual amount
for each item for your assignments.
For simplicity, we have assumed:
(i) Equity and Debt are obtained on the first (1st) month of the business commencement.
(ii) Only simple interest (i.e. non-compounding) on loan amount is computed. Interest expense is a business expense, which reduces profits and hence reduces tax liability.
(iii) We pay only the interest (on the loan) at the start of each month while the full principal loan amount is repaid only at the end of the loan duration (term).
NOTE: You need to consider carefully:
(i) The TOTAL INVESTMENT required in order to have adequate working capital and hence avoid bankruptcy (cashflow liquidity issues)
(ii) The proportion of EQUITY (Own + Investors) vs. DEBT financing
(1) Initial Investment
[ASSUMPTIONS, FORECASTING, BUDGETING] + [PRO-FORMA INCOME STATEMENT, CASHFLOW & BALANCE SHEET]
SECTION: (2) CAPITAL EXPENDITURE, DEPRECIATION &
AMORTIZATION
[2A] CAPITAL EXPENDITURE I (Depreciable)
Amount
CapEx #1: Initial renovation and shop set-up costs
$0.00
Useful Life
in months
36
Monthly
Depreciation
$0.00
CapEx #2: ______?
CapEx #3: ______?
Total Monthly Depreciation Expenses
$0.00
$0.00
NOTE: Depreciation is on a straight line basis. Assumptions:
(i) All Fixed Assets (Capital Expenditure) are purchased and fully paid in the 1st month of the business;
(ii) Full month’s of depreciation expense charged in month of purchase, regardless of date of purchase | (iii) There is no residual/salvage value for the asset.
NOTE: In a Franchise, the Initial Set-up costs may also include a lump-sum up-front royalty fee paid to the Franchisor to secure the franchise – this is quite common. Good practice to list
it as a separate item and not lump them together with other capital expenditure/costs such as renovation.
What other possible Capital Expenditure will your business incur?
[2B] PREPAID EXPENSES (Amortization)
Useful Life
in months
$0.00
12
Amount
Prepayments #1: Insurance (1-year)
Monthly
Depreciation
$0.00
#2: ______?
#3: ______?
NOTE: This section deals with Prepayment of Expenses and the subsequent Amortization
[2C] CAPITAL EXPENDITURE II (Non-Depreciable)
Shop rental deposit
Amount
$0.00
Item #2: ______?
Item #3: ______?
NOTE: Strictly speaking, Capital Expenditure will usually require depreciation.
However, in this case, we have added this additional section to include up-front cash outlay that do not require depreciation, such as refundable deposits for e.g. shop rental.
(2) CapEx & Dep & Amort
[ASSUMPTIONS, FORECASTING, BUDGETING] + [PRO-FORMA INCOME STATEMENT, CASHFLOW & BALANCE SHEET]
SECTION: (3) SALES & COGS
[3A] Selling Price per unit
Year 1
Year 2
You can use this table for your own subsequent years forecast
Year 3
You can use this table for your own subsequent years forecast
Y1 Month 1
$0.00
Y1 Month 2
$0.00
Y1 Month 3
$0.00
Y1 Month 4
$0.00
Y1 Month 5
$0.00
Y1 Month 6
$0.00
Y1 Month 7
$0.00
Y1 Month 8
$0.00
Y1 Month 9 Y1 Month 10 Y1 Month 11 Y1 Month 12
$0.00
$0.00
$0.00
$0.00
% PRICE change for Year 2:
Y2 Month 1
Y2 Month 2
$0.00
$0.00
0%
Y2 Month 3
$0.00
Y2 Month 4
$0.00
Y2 Month 5
$0.00
Y2 Month 6
$0.00
Y2 Month 7
$0.00
Y2 Month 8
$0.00
Y2 Month 9 Y2 Month 10 Y2 Month 11 Y2 Month 12
$0.00
$0.00
$0.00
$0.00
% PRICE change for Year 3:
Y3 Month 1
Y3 Month 2
$0.00
$0.00
0%
Y3 Month 3
$0.00
Y3 Month 4
$0.00
Y3 Month 5
$0.00
Y3 Month 6
$0.00
Y3 Month 7
$0.00
Y3 Month 8
$0.00
Y3 Month 9 Y3 Month 10 Y3 Month 11 Y3 Month 12
$0.00
$0.00
$0.00
$0.00
NOTE: Is it usual to maintain a constant Selling Price throughout the year? Consider issues e.g. sales promotion, holiday sales, etc. Similarly, will the price be the same for subsequent years?
NOTE: You can adjust the year-on-year (YoY) % increase in Selling Price above. Take note of the embedded formula. OR if you wish, you can overwrite the values in each cell for each month.
NOTE: This assumption here is based on selling only 1 item. Consider expanding this section if you have multiple product lines / categories, each with its own selling price, sales forecast and costs.
[3B] Cost Price per unit
Year 1
Year 2
You can use this table for your own subsequent years forecast
Year 3
You can use this table for your own subsequent years forecast
Y1 Month 1
$0.00
Y1 Month 2
$0.00
Y1 Month 3
$0.00
Y1 Month 4
$0.00
Y1 Month 5
$0.00
Y1 Month 6
$0.00
Y1 Month 7
$0.00
Y1 Month 8
$0.00
Y1 Month 9 Y1 Month 10 Y1 Month 11 Y1 Month 12
$0.00
$0.00
$0.00
$0.00
% COST change for Year 2:
Y2 Month 1
Y2 Month 2
$0.00
$0.00
0%
Y2 Month 3
$0.00
Y2 Month 4
$0.00
Y2 Month 5
$0.00
Y2 Month 6
$0.00
Y2 Month 7
$0.00
Y2 Month 8
$0.00
Y2 Month 9 Y2 Month 10 Y2 Month 11 Y2 Month 12
$0.00
$0.00
$0.00
$0.00
% COST change for Year 3:
Y3 Month 1
Y3 Month 2
$0.00
$0.00
0%
Y3 Month 3
$0.00
Y3 Month 4
$0.00
Y3 Month 5
$0.00
Y3 Month 6
$0.00
Y3 Month 7
$0.00
Y3 Month 8
$0.00
Y3 Month 9 Y3 Month 10 Y3 Month 11 Y3 Month 12
$0.00
$0.00
$0.00
$0.00
NOTE: Is it usual to maintain a constant COGS throughout? Sometimes suppliers may offer discounts for bulk purchases. Similarly, will the Cost be the same for subsequent years?
NOTE: You can adjust the year-on-year (YoY) % increase in Cost above. Take note of the embedded formula.
NOTE: This assumption here is based on selling only 1 item. Consider expanding this section if you have multiple product lines / categories, each with its own selling price, sales forecast and costs.
[3C] Sales Forecast for each month
Year 1
Sales in Quantity
Sales in Dollar Value ($)
Y1 Month 1
Y1 Month 2
Y1 Month 3
Y1 Month 4
Y1 Month 5
Y1 Month 6
Y1 Month 7
Y1 Month 8
Y1 Month 9
Y1 Month 10
Y1 Month 11
Y1 Month 12
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
TOTAL Y1
$0.00
Year 2
Sales in Quantity
Sales in Dollar Value ($)
Y2 Month 1
$0.00
Y2 Month 2
$0.00
Y2 Month 3
$0.00
Y2 Month 4
$0.00
Y2 Month 5
$0.00
Y2 Month 6
$0.00
Y2 Month 7
$0.00
Y2 Month 8
$0.00
Y2 Month 9 Y2 Month 10 Y2 Month 11 Y2 Month 12
$0.00
$0.00
$0.00
$0.00
TOTAL Y2
$0.00
Year 3
Sales in Quantity
Sales in Dollar Value ($)
Y3 Month 1
$0.00
Y3 Month 2
$0.00
Y3 Month 3
$0.00
Y3 Month 4
$0.00
Y3 Month 5
$0.00
Y3 Month 6
$0.00
Y3 Month 7
$0.00
Y3 Month 8
$0.00
Y3 Month 9 Y3 Month 10 Y3 Month 11 Y3 Month 12
$0.00
$0.00
$0.00
$0.00
TOTAL Y3
$0.00
Y4 Month 1
$0.00
NOTE: The first month is the ‘gestation period’ – the setting-up phase where you do renovation, buying of inventory, staff recruitment, etc. Question: Do you think 1 month is enough? Don’t forget, while you are spending
time setting-up, there is usually no sales (i.e. no income $$) but rent is still payable!
NOTE: Month 13 (Year 2) sales forecast is provided to help calculate the closing inventory at the end of Month 12. Similarly, Month 37 may be needed to compute the Closing Inventory for Month 36
NOTE: Sudden increase in sales in Year 1 Month 8 to 12: This is intentional for a separate learning lesson.
(3) Sales & COGS
[ASSUMPTIONS, FORECASTING, BUDGETING] + [PRO-FORMA INCOME STATEMENT, CASHFLOW & BALANCE SHEET]
Year 1
Month End
Year 2
Month End
Year 3
Month End
0%
0%
0%
[3Dii] Balance Inventory to hold at the end of each
month [Closing Inventory]
Year 1
Closing Inventory in Quantity
Closing Inventory in Dollar Value ($)
Y1 Month 1
$0.00
Y1 Month 2
$0.00
Y1 Month 3
$0.00
Y1 Month 4
$0.00
Y1 Month 5
$0.00
Y1 Month 6
$0.00
Y1 Month 7
$0.00
Y1 Month 8
$0.00
Y1 Month 9 Y1 Month 10 Y1 Month 11 Y1 Month 12
$0.00
$0.00
$0.00
$0.00
Year 2
Closing Inventory in Quantity
Closing Inventory in Dollar Value ($)
Y2 Month 1
0.00
$0.00
Y2 Month 2
0.00
$0.00
Y2 Month 3
0.00
$0.00
Y2 Month 4
0.00
$0.00
Y2 Month 5
0.00
$0.00
Y2 Month 6
0.00
$0.00
Y2 Month 7
0.00
$0.00
Y2 Month 8
0.00
$0.00
Y2 Month 9 Y2 Month 10 Y2 Month 11 Y2 Month 12
0.00
0.00
0.00
0.00
$0.00
$0.00
$0.00
$0.00
Year 3
Closing Inventory in Quantity
Closing Inventory in Dollar Value ($)
Y3 Month 1
0.00
$0.00
Y3 Month 2
0.00
$0.00
Y3 Month 3
0.00
$0.00
Y3 Month 4
0.00
$0.00
Y3 Month 5
0.00
$0.00
Y3 Month 6
0.00
$0.00
Y3 Month 7
0.00
$0.00
Y3 Month 8
0.00
$0.00
Y3 Month 9 Y3 Month 10 Y3 Month 11 Y3 Month 12
0.00
0.00
0.00
0.00
$0.00
$0.00
$0.00
$0.00
[3Di] Balance Inventory to hold at the end of each
month (%)
NOTE: Balance (Closing) Inventory at the end of each month is 10% of NEXT MONTH’S sales forecast.
NOTE: Closing Inventory at the end of Year X Month 12 is based on 10% of NEXT YEAR’s (X+1) MONTH 1 sales forecast
A simplistic model for easy calculation is to assume the business buys exactly what it needs to sell for each month and there is no excess left over at the end of each month. Simply said, all inventory purchased for the month
is completely sold, i.e. zero (0) opening and zero (0) closing inventory for each month.
However, in the real world, it is normal for a Retail business to have some closing inventory at the end of the month. Imagine going into a shop on the last day of each month and it’s completely empty!
Not quite likely right? For some businesses, they may budget the Closing Inventory for each month as a percentage (%) of the next month’s sales forecast – this ‘buffer’ could serve as a ‘standby’ in case of delivery delays by
supplier. In fact, some businesses may hold even more (>10%) inventory at the end of the month in anticipation of increased demand next month due to e.g. holiday sales.
[3E] Inventory to Purchase for each month
Year 1
Purchases in Quantity
Purchases in Dollar Value ($)
Y1 Month 1
$0.00
Y1 Month 2
$0.00
Y1 Month 3
$0.00
Y1 Month 4
$0.00
Y1 Month 5
$0.00
Y1 Month 6
$0.00
Y1 Month 7
$0.00
Y1 Month 8
$0.00
Y1 Month 9 Y1 Month 10 Y1 Month 11 Y1 Month 12
$0.00
$0.00
$0.00
$0.00
TOTAL Y1
$0.00
Year 2
Purchases in Quantity
Purchases in Dollar Value ($)
Y2 Month 1
$0.00
Y2 Month 2
$0.00
Y2 Month 3
$0.00
Y2 Month 4
$0.00
Y2 Month 5
$0.00
Y2 Month 6
$0.00
Y2 Month 7
$0.00
Y2 Month 8
$0.00
Y2 Month 9 Y2 Month 10 Y2 Month 11 Y2 Month 12
$0.00
$0.00
$0.00
$0.00
TOTAL Y2
$0.00
Year 3
Purchases in Quantity
Purchases in Dollar Value ($)
Y3 Month 1
$0.00
Y3 Month 2
$0.00
Y3 Month 3
$0.00
Y3 Month 4
$0.00
Y3 Month 5
$0.00
Y3 Month 6
$0.00
Y3 Month 7
$0.00
Y3 Month 8
$0.00
Y3 Month 9 Y3 Month 10 Y3 Month 11 Y3 Month 12
$0.00
$0.00
$0.00
$0.00
TOTAL Y3
$0.00
NOTE: Inventory to purchase for each month = (i) Sales Forecast for the Month + (ii) Closing Inventory required for the Month – (iii) Opening Inventory (i.e. Closing Inventory of Previous Month)
(3) Sales & COGS
[ASSUMPTIONS, FORECASTING, BUDGETING] + [PRO-FORMA INCOME STATEMENT, CASHFLOW & BALANCE SHEET]
SECTION: (4) MANPOWER & COMMISSION
[4A] MANPOWER & COMMISSION
Year 1
Manpower required
Y1 Month 1
0
Y1 Month 2
0
Y1 Month 3
0
Y1 Month 4
0
Y1 Month 5
0
Y1 Month 6
0
Y1 Month 7
0
Y1 Month 8
0
Y1 Month 9
0
Y1 Month 10 Y1 Month 11 Y1 Month 12
0
0
0
Base Salary per worker (Fixed monthly)
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Total Base Salary Expenses for the month
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Commission rate (Variable monthly) %
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Total Commission paid (Variable monthly) $
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Year 2
Y2 Month 1
Y2 Month 2
Y2 Month 3
Y2 Month 4
Y2 Month 5
Y2 Month 6
Y2 Month 7
Y2 Month 8
Y2 Month 9
Y2 Month 10 Y2 Month 11 Y2 Month 12
0
0
0
Manpower required
0
0
0
0
0
0
0
0
0
Base Salary per worker (Fixed monthly)
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Total Base Salary Expenses for the month
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Commission rate (Variable monthly) %
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Total Commission paid (Variable monthly) $
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Year 3
Manpower required
Y3 Month 1
0
Y3 Month 2
0
Y3 Month 3
0
Y3 Month 4
0
Y3 Month 5
0
Y3 Month 6
0
Y3 Month 7
0
Y3 Month 8
0
Y3 Month 9
0
Y3 Month 10 Y3 Month 11 Y3 Month 12
0
0
0
Base Salary per worker (Fixed monthly)
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Total Base Salary Expenses for the month
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Commission rate (Variable monthly) %
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Total Commission paid (Variable monthly) $
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
TOTAL Y1
$0.00
$0.00
TOTAL Y2
$0.00
$0.00
TOTAL Y3
$0.00
$0.00
NOTE: Assumption here is only for hiring of one type of staff (position) AND all staff hired for the same position is paid the same. In reality, there could be different positions available and a range of salary paid. If so, you
can expand the table for each year to account for this.
NOTE: Assumption – the staff hired for the business is primarily tasked to do sales, hence a commission (% based on sales) is offered to incentivse the staff. Whether necessary or not is up to you.
NOTE: You should also consider if there is a need to hire more staff when the business grows and hence require additional manpower.
(4) Manpower & Commission
[ASSUMPTIONS, FORECASTING, BUDGETING] + [PRO-FORMA INCOME STATEMENT, CASHFLOW & BALANCE SHEET]
SECTION: (5) OPERATING EXPENSES
Y1 Month 1
Y1 Month 2
Y1 Month 3
Y1 Month 4
Y1 Month 5
Y1 Month 6
Y1 Month 7
Y1 Month 8
Y1 Month 9
Y1 Month 10
Y1 Month 11
Y1 Month 12
Shop Rental
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Utilities
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Miscellaneous
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Advertising & Marketing expense
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Social Media Marketing expense
0%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Insurance expense
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Year 1
Salary (fixed monthly-base) expense
TOTAL Y1
Commission expense
0%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Other possible expenses?
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Total Operating Expenses
Y2 Month 1
Y2 Month 2
Y2 Month 3
Y2 Month 4
Y2 Month 5
Y2 Month 6
Y2 Month 7
Y2 Month 8
Y2 Month 9
Y2 Month 10
Y2 Month 11
Y2 Month 12
Shop Rental
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Utilities
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Miscellaneous
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Advertising & Marketing expense
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Social Media Marketing expense
5%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Insurance expense
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Year 2
Salary (fixed monthly-base) expense
TOTAL Y2
Commission expense
0%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Other possible expenses?
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Total Operating Expenses
(5) Operating Expenses
[ASSUMPTIONS, FORECASTING, BUDGETING] + [PRO-FORMA INCOME STATEMENT, CASHFLOW & BALANCE SHEET]
Y3 Month 1
Y3 Month 2
Y3 Month 3
Y3 Month 4
Y3 Month 5
Y3 Month 6
Y3 Month 7
Y3 Month 8
Y3 Month 9
Y3 Month 10
Y3 Month 11
Y3 Month 12
Shop Rental
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Utilities
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Miscellaneous
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Advertising & Marketing expense
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Social Media Marketing expense
5%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Insurance expense
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Year 3
Salary (fixed monthly-base) expense
TOTAL Y3
Commission expense
0%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Other possible expenses?
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Total Operating Expenses
NOTE: For simplicity, we are making some assumptions here:
– Shop Rental: As given in the case background.
– Utilities: E.g. telephone, fax, internet, power, etc. are assumed to be fixed every month throughout the year.
– Miscellaneous: E.g. transport, stationery, pantry, etc. are assumed to be fixed every month throughout the year.
– Advertising & Marketing: E.g. Printing & distribution of flyers every month, advt in local magazines, etc. are assumed to be fixed every month throughout the year.
– Social Media Marketing: Note that this is deliberately stated a percentage (5%) of Sales ($ – sales dollar value, not quantity sold). You can also substitute this cost/expense for something else that has a direct correlation
to Revenue. Example: Payment to NETS or Visa or Mastercard for using their payment collection services/terminal.
– Insurance: A 12-month (yearly) fire insurance policy was purchased in the first month. Although in-line with the assumption that all expenditures are completely paid in cash immediately upon the transaction, we still
need to amortize this insurance policy throughout the 1-year duration of the coverage – concept of Prepayments in accrual accounting. Also, keep it simple – purchase the insurance in the 1st month rather than
sometime later in the year.
– Salary & Commission: These were determined in a separate worksheet under Manpower & Commission
NOTE: You can change the values in Column B (highlighted in ORANGE) to reflect your own assumptions.
NOTE: This list of expenses should also appear in the P&L + Cashflow
NOTE: What other possible expenses can the business expect to incur? Insert additional rows as necessary. Do remember to update the P&L, Cashflow as well.
NOTE: EACH EXPENSE ITEM should consider if it will change (increase/decrease $$$) over time as the business grows (from month to month, from year to year)
(5) Operating Expenses
[ASSUMPTIONS, FORECASTING, BUDGETING] + [PRO-FORMA INCOME STATEMENT, CASHFLOW & BALANCE SHEET]
SECTION: (6) PRO-FORMA INCOME STATEMENT
Soupy Delight Pte Ltd
Income Statement
For the period…
Y1 Month 1
Y1 Month 2
Y1 Month 3
Y1 Month 4
Y1 Month 5
Y1 Month 6
Y1 Month 7
Y1 Month 8
Y1 Month 9
Y1 Month 10
Y1 Month 11
Y1 Month 12
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Net Profit / (Loss) Before Tax
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Less: Tax
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
NET PROFIT AFTER TAX (NPAT)
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Sales
Less: Cost of Goods Sold (COGS)
– Opening Inventory
– Add: Purchases for the month
– Less: Closing Inventory
Gross Profit
Less: Operating Expenses
– Shop Rental
– Utilities
– Miscellaneous
– Advertising & Marketing costs
– Social Media Marketing costs
– Insurance expense (monthly)
– Salary (fixed monthly-base)
– Commission expense
– Other possible expense?
(Fixed)
(Fixed)
(Fixed)
(Fixed)
(Variable)
(Fixed)
(Fixed)
(Variable)
Total Operating Expenses
Earnings Before Interest, Depreciation & Tax
– Interest Payment
– Depreciation of Fixed Assets
*Decimals are omitted for presentation purposes
(6) Income Statement
TOTAL Y1
Soupy Delight Pte Ltd
Income Statement
For the period…
Y2 Month 1
Y2 Month 2
Y2 Month 3
Y2 Month 4
Y2 Month 5
Y2 Month 6
Y2 Month 7
Y2 Month 8
Y2 Month 9
Y2 Month 10
Y2 Month 11
Y2 Month 12
$0.00
$0.00
$0.00
TOTAL Y2
Sales
Less: Cost of Goods Sold (COGS)
– Opening Inventory
– Add: Purchases for the month
– Less: Closing Inventory
$0.00
Gross Profit
Less: Operating Expenses
– Shop Rental
– Utilities
– Miscellaneous
– Advertising & Marketing costs
– Social Media Marketing costs
– Insurance expense (monthly)
– Salary (fixed monthly-base)
– Commission expense
– Other possible expense?
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
(Fixed)
(Fixed)
(Fixed)
(Fixed)
(Variable)
(Fixed)
(Fixed)
(Variable)
Total Operating Expenses
Earnings Before Interest, Depreciation & Tax
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
– Interest Payment
– Depreciation of Fixed Assets
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Net Profit / (Loss) Before Tax
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Less: Tax
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
NET PROFIT AFTER TAX (NPAT)
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
TEMPLATES ABOVE FOR YEAR 2 & 3 ARE PROVIDED FOR YOUR OWN USE. HINT: EXAMINE THE FORUMLAS AND CELL REFERENCE IN EACH OF THE ITEM ABOVE FOR YEAR 1 TO DETERMINE WHERE TO OBTAIN THE VALUES FROM
(6) Income Statement
Soupy Delight Pte Ltd
Income Statement
For the period…
Y3 Month 1
Y3 Month 2
Y3 Month 3
Y3 Month 4
Y3 Month 5
Y3 Month 6
Y3 Month 7
Y3 Month 8
Y3 Month 9
Y3 Month 10
Y3 Month 11
Y3 Month 12
$0.00
$0.00
$0.00
TOTAL Y3
Sales
Less: Cost of Goods Sold (COGS)
– Opening Inventory
– Add: Purchases for the month
– Less: Closing Inventory
$0.00
Gross Profit
Less: Operating Expenses
– Shop Rental
– Utilities
– Miscellaneous
– Advertising & Marketing costs
– Social Media Marketing costs
– Insurance expense (monthly)
– Salary (fixed monthly-base)
– Commission expense
– Other possible expense?
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
(Fixed)
(Fixed)
(Fixed)
(Fixed)
(Variable)
(Fixed)
(Fixed)
(Variable)
Total Operating Expenses
Earnings Before Interest, Depreciation & Tax
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
– Interest Payment
– Depreciation of Fixed Assets
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Net Profit / (Loss) Before Tax
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Less: Tax
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
NET PROFIT AFTER TAX (NPAT)
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
TEMPLATES ABOVE FOR YEAR 2 & 3 ARE PROVIDED FOR YOUR OWN USE. HINT: EXAMINE THE FORUMLAS AND CELL REFERENCE IN EACH OF THE ITEM ABOVE FOR YEAR 1 TO DETERMINE WHERE TO OBTAIN THE VALUES FROM
(6) Income Statement
[ASSUMPTIONS, FORECASTING, BUDGETING] + [PRO-FORMA INCOME STATEMENT, CASHFLOW & BALANCE SHEET]
SECTION: (7) PRO-FORMA CASH FLOW STATEMENT
*Cash Flow format is based on the Financial Reporting
Standard (FRS) (Direct Method)
Soupy Delight Pte Ltd
Cash Flow
For the period…
Y1 Month 1
Y1 Month 2
Y1 Month 3
Y1 Month 4
Y1 Month 5
Y1 Month 6
Y1 Month 7
Y1 Month 8
Y1 Month 9
Y1 Month 10
Y1 Month 11
Y1 Month 12
For the Year
CASH FROM OPERATIONS
Cash from Receipts
Collection from Cash Sales
Collection from Receivables
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash inflow from Operations
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash Disbursement
Cost of Goods sold / Purchase of Inventory
(i.e. Payment to Supplier)
Shop Rental
Shop Rental Deposit
Utilities
Miscellaneous
Advertising & Marketing costs
Social Media Marketing costs
Insurance Expense (up-front lump sum)
Salary (fixed monthly-base)
Commission expense
Other possible outflows?
Taxes paid for the year
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash Outflow for Operations
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cash Inflow/(Outflow) from Operations
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
CASH FROM INVESTING
Renovation and Shop Set-up costs
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cash Inflow/(Outflow) from Investing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
CASH FROM FINANCING
Capital injection
Loans obtained
Loans repayment
Interest Payment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cash Inflow/(Outflow) from Financing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Opening Cash Balance
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash Inflow/(Outflow) from Operations
Cash Inflow/(Outflow) from Investing
Cash Inflow/(Outflow) from Financing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
END-OF-MONTH BALANCE
Net Cash Inflow/(Outflow)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Ending Cash Balance
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
*Decimals are omitted for presentation purposes
*Side note: Notice anything unusual with the Cashflow?
(7) Cashflow Statement
Soupy Delight Pte Ltd
Cash Flow
For the period…
Y2 Month 1
Y2 Month 2
Y2 Month 3
Y2 Month 4
Y2 Month 5
Y2 Month 6
Y2 Month 7
Y2 Month 8
Y2 Month 9
Y2 Month 10
Y2 Month 11
Y2 Month 12
CASH FROM OPERATIONS
Cash from Receipts
Collection from Cash Sales
Collection from Receivables
Cash inflow from Operations
For the Year
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash Disbursement
Cost of Goods sold / Purchase of Inventory
(i.e. Payment to Supplier)
Shop Rental
Shop Rental Deposit
Utilities
Miscellaneous
Advertising & Marketing costs
Social Media Marketing costs
Insurance Expense (up-front lump sum)
Salary (fixed monthly-base)
Commission expense
Other possible outflows?
Taxes paid for the year
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash Outflow for Operations
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cash Inflow/(Outflow) from Operations
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
CASH FROM INVESTING
Renovation and Shop Set-up costs
Total Cash Inflow/(Outflow) from Investing
CASH FROM FINANCING
Capital injection
Loans obtained
Loans repayment
Interest Payment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Opening Cash Balance
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash Inflow/(Outflow) from Operations
Cash Inflow/(Outflow) from Investing
Cash Inflow/(Outflow) from Financing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cash Inflow/(Outflow) from Financing
END-OF-MONTH BALANCE
Net Cash Inflow/(Outflow)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Ending Cash Balance
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
*Decimals are omitted for presentation purposes
TEMPLATES ABOVE FOR YEAR 2 & 3 ARE PROVIDED FOR YOUR OWN USE. HINT: EXAMINE THE FORUMLAS AND CELL REFERENCE IN EACH OF THE ITEM ABOVE FOR YEAR 1 TO DETERMINE WHERE TO OBTAIN THE VALUES FROM
(7) Cashflow Statement
Soupy Delight Pte Ltd
Cash Flow
For the period…
Y3 Month 1
Y3 Month 2
Y3 Month 3
Y3 Month 4
Y3 Month 5
Y3 Month 6
Y3 Month 7
Y3 Month 8
Y3 Month 9
Y3 Month 10
Y3 Month 11
Y3 Month 12
CASH FROM OPERATIONS
Cash from Receipts
Collection from Cash Sales
Collection from Receivables
Cash inflow from Operations
For the Year
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash Disbursement
Cost of Goods sold / Purchase of Inventory
(i.e. Payment to Supplier)
Shop Rental
Shop Rental Deposit
Utilities
Miscellaneous
Advertising & Marketing costs
Social Media Marketing costs
Insurance Expense (up-front lump sum)
Salary (fixed monthly-base)
Commission expense
Other possible outflows?
Taxes paid for the year
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash Outflow for Operations
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cash Inflow/(Outflow) from Operations
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
CASH FROM INVESTING
Renovation and Shop Set-up costs
Total Cash Inflow/(Outflow) from Investing
CASH FROM FINANCING
Capital injection
Loans obtained
Loans repayment
Interest Payment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Opening Cash Balance
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cash Inflow/(Outflow) from Operations
Cash Inflow/(Outflow) from Investing
Cash Inflow/(Outflow) from Financing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cash Inflow/(Outflow) from Financing
END-OF-MONTH BALANCE
Net Cash Inflow/(Outflow)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Ending Cash Balance
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
*Decimals are omitted for presentation purposes
TEMPLATES ABOVE FOR YEAR 2 & 3 ARE PROVIDED FOR YOUR OWN USE. HINT: EXAMINE THE FORUMLAS AND CELL REFERENCE IN EACH OF THE ITEM ABOVE FOR YEAR 1 TO DETERMINE WHERE TO OBTAIN THE VALUES FROM
(7) Cashflow Statement
[ASSUMPTIONS, FORECASTING, BUDGETING] + [PRO-FORMA INCOME STATEMENT, CASHFLOW & BALANCE SHEET]
SECTION: (8) PRO-FORMA BALANCE SHEET
Soupy Delight Pte Ltd
Balance Sheet
As at 31st Month 12 Year 1
ASSETS
Non-Current Assets (Fixed Assets)
Renovation
Less: Accumulated Depreciation of Renovation
$0
$0
Rental Deposit
TOTAL ASSETS
$0
TOTAL NON-CURRENT LIABILITIES
$0
Current Liabilities
NIL
$0
TOTAL LIABILITIES
$0
$0
$0
TOTAL NON-CURRENT ASSETS
Current Assets
Cash
Inventory
Insurance (Prepaid)
TOTAL CURRENT ASSETS
LIABILITIES
Non-Current Liabilities
Loan (4 years)
$0
$0
$0
$0
OWNERS’ EQUITY
Share Capital (Ordinary Shares)
Retained Earnings
– Opening balance
– Add: Profit / (Loss) for the period
– Closing balance
$0
$0
=
$0
$0
$0
$0
TOTAL OWNER’S EQUITY
$0
TOTAL LIABILITIES AND OWNERS’ EQUITY
$0
NOTE: Notice anything unusual about the Balance Sheet? We’ll discuss this in another lesson, together with the next steps on WACC, NPV, IRR and Valuation
(8) Balance Sheet
Soupy Delight Pte Ltd
Balance Sheet
As at 31st Month 12 Year 2
ASSETS
Non-Current Assets (Fixed Assets)
Renovation
Less: Accumulated Depreciation of Renovation
LIABILITIES
Non-Current Liabilities
Loan (4 years)
$0
TOTAL NON-CURRENT LIABILITIES
$0
Current Liabilities
NIL
$0
TOTAL LIABILITIES
$0
Rental Deposit
TOTAL NON-CURRENT ASSETS
Current Assets
Cash
Inventory
Insurance (Prepaid)
TOTAL CURRENT ASSETS
TOTAL ASSETS
$0
OWNERS’ EQUITY
Share Capital (Ordinary Shares)
Retained Earnings
– Opening balance
– Add: Profit / (Loss) for the period
– Closing balance
$0
$0
=
$0
$0
TOTAL OWNER’S EQUITY
$0
TOTAL LIABILITIES AND OWNERS’ EQUITY
$0
TEMPLATES ABOVE FOR YEAR 2 & 3 ARE PROVIDED FOR YOUR OWN USE. HINT: EXAMINE THE FORUMLAS AND CELL REFERENCE IN EACH OF THE ITEM ABOVE FOR YEAR 1 TO DETERMINE WHERE TO OBTAIN THE
VALUES FROM
(8) Balance Sheet
Soupy Delight Pte Ltd
Balance Sheet
As at 31st Month 12 Year 3
ASSETS
Non-Current Assets (Fixed Assets)
Renovation
Less: Accumulated Depreciation of Renovation
LIABILITIES
Non-Current Liabilities
Loan (4 years)
$0
TOTAL NON-CURRENT LIABILITIES
$0
Current Liabilities
NIL
$0
TOTAL LIABILITIES
$0
Rental Deposit
TOTAL NON-CURRENT ASSETS
Current Assets
Cash
Inventory
Insurance (Prepaid)
TOTAL CURRENT ASSETS
TOTAL ASSETS
$0
OWNERS’ EQUITY
Share Capital (Ordinary Shares)
Retained Earnings
– Opening balance
– Add: Profit / (Loss) for the period
– Closing balance
$0
$0
=
$0
$0
TOTAL OWNER’S EQUITY
$0
TOTAL LIABILITIES AND OWNERS’ EQUITY
$0
TEMPLATES ABOVE FOR YEAR 2 & 3 ARE PROVIDED FOR YOUR OWN USE. HINT: EXAMINE THE FORUMLAS AND CELL REFERENCE IN EACH OF THE ITEM ABOVE FOR YEAR 1 TO DETERMINE WHERE TO OBTAIN THE
VALUES FROM
(8) Balance Sheet
Designed for:
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Date:
Version:
Business Model Canvas
Key Partners
Key Activities
Value Propositions
Customer Relationships
Customer Segments
Who are our Key Partners? Who
are our key suppliers? Which
Key Resources are we acquiring
from partners? Which Key
Activities do partners perform?
What Key Activities do our
Value Propositions require? Our
Distribution Channels?
Customer Relationships?
Revenue streams?
CATEGORIES:
Production, Problem Solving,
Platform/Network
What type of relationship does
each of our Customer Segments
expect us to establish and
maintain with them? Which ones
have we established? How are
they integrated with the rest of
our business model? How costly
are they?
For whom are we creating
value? Who are our most
important customers?
MOTIVATIONS FOR
PARTNERSHIPS: Optimization
and economy, Reduction of risk
and uncertainty, Acquisition of
particular resources and
activities
What value do we deliver to the
customer? Which one of our
customer’s problems are we
helping to solve? What bundles
of products and services are we
offering to each Customer
Segment? Which customer
needs are we satisfying?
CHARACTERISTICS:
Newness, Performance,
Customization, “Getting the Job
Done”, Design, Brand/Status,
Price, Cost Reduction, Risk
Reduction, Accessibility,
Convenience/Usability
Channels
Key Resources
What Key Resources do our
Value Propositions require? Our
Distribution Channels?
Customer Relationships
Revenue Streams?
TYPES OF RESOURCES:
Physical, Intellectual (brand
patents, copyrights, data),
Human, Financial
Is our customer base a Mass
Market, Niche Market,
Segmented, Diversified, Multisided Platform
Through which Channels do our
Customer Segments want to be
reached? How are we reaching
them now? How are our
Channels integrated? Which
ones work best? Which ones
are most cost-efficient? How are
we integrating them with
customer routines?
Cost Structure
Revenue Streams
What are the most important costs inherent in our business model? Which Key
Resources are most expensive? Which Key Activities are most expensive?
For what value are our customers really willing to pay? For what do they currently
pay? How are they currently paying? How would they prefer to pay? How much does
each Revenue Stream contribute to overall revenues?
IS YOUR BUSINESS MORE: Cost Driven (leanest cost structure, low price value
proposition, maximum automation, extensive outsourcing), Value Driven (focused on
value creation, premium value proposition).
SAMPLE CHARACTERISTICS: Fixed Costs (salaries, rents, utilities), Variable costs,
Economies of scale, Economies of scope
TYPES: Asset sale, Usage fee, Subscription Fees, Lending/Renting/Leasing,
Licensing, Brokerage fees, Advertising
FIXED PRICING: List Price, Product feature dependent, Customer segment
dependent, Volume dependent
DYNAMIC PRICING: Negotiation (bargaining), Yield Management, Real-time-Market
Designed by: The Business Model Foundry (www.businessmodelgeneration.com/canvas). Word implementation by: Neos Chronos Limited (https://neoschronos.com). License: CC BY-SA 3.0
Designed for:
Designed by:
Date:
Value Propositions
Customer Relationships
Customer Segments
Business Model Canvas
Key Partners
Key Activities
Key Resources
Cost Structure
Channels
Revenue Streams
Designed by: The Business Model Foundry (www.businessmodelgeneration.com/canvas). Word implementation by: Neos Chronos Limited (https://neoschronos.com). License: CC BY-SA 3.0
Version: