Financial Modeling for Startups
Adham Elsawy
My Background
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+10 Years Experience in Finance in MENA
Executive MBA from Georgia State University, USA
Finance Manager Walaplus, KSA
Consultant for Business Growth & Finance Strategy for Scalable CFO, UAE
Startup Scaling component
3
People | Strategy | Execution | Cash |
Happy | Revenue / Growth | Profit / Time | Oxygen / Options |
SUCCESS
Importance of Financial Modeling
Making informed business decisions
Reading your Business timeline
Securing funding
& managing cash flow
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Understanding Financial Models
Purpose
Which will draw your timeline , picture your strategy and keep your objectives aligned
Types of Models
3 Statements, Valuation Model, Budgeting
Special Purpose model (Pricing, Costing, etc)
Cash Burn Rate Importance
How can it affect my Business
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Cash Burn Rate
6
Key Components
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All above are mandatory to have and there is some special requirements for your industry :
Scenario Analysis
Cash Flow Statement
Balance Sheet
Income Statement
Assumptions
Best Practices
Continuous Improvement
continuous updates and improvements to the model as the startup grows
Using Excel Efficiently
using Excel functions, formatting, and error-checking tools
Accuracy and Consistency
accuracy, consistency, and transparency in building a model.
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Prepare your supported Reports �like “SALES FORECAST”
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3-YEAR SALES SUMMARY | YR1 | YR2 | YR3 |
Total Sales | £300,000 | £400,000 | £500,000 |
Average % Commission | 12% | 12% | 12% |
NET PROFIT | £36,000 | £48,000 | £60,000 |
REQUIRED FUNDING
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DEBT INVESTOR
£XXXXX
BANK
£XXXXX
OWNER EQUITY
£XXXXX
DEBT INVESTMENT
£XXXXX
Q&A
11
THANK YOU!
Adham Elsawy
Acc_Adham_Elsawy@hotmail.com
+966 552178982