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Start Here
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Pressure-test your business idea against real numbers before you commit money, time, or a job. This is a planning tool that will assist you in determining whether or not you have a viable business idea. If you have an existing business it can also help you to understand the current state of your business.
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WHAT THIS WORKBOOK DOES
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You fill in three tabs. The workbook turns them into the three statements a real business runs on (Cash Flow Projection, Income Statement & Balance Sheet), then it provides answers to five key questions that tell you whether the idea holds up.
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THE ORDER OF WORK
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1. Startup Costs: the one-time money it takes to open.
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2. Sales Forecast: how much you’ll sell each month.
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3. Monthly Expenses: what it costs to run each month.
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Tabs 4-6 (Cash Flow, Income Statement, Balance Sheet) fill in automatically after 1-3 are completed.
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Throughout this workbook, cream-colored cells are yours to fill in. Every other cell calculates on its own.
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When do your customers usually pay?Same monthNet 30 means customers pay the following month.
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YOUR KEY ANSWERS
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Nothing to enter here. These fill in on their own once you complete tabs 1 to 3. Nothing to type here.
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1. What it costs to openFill in tabs 1 to 3 first
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2. Sales you need each month to break evenFill in tabs 1 to 3 first
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3. When cash runs shortFill in tabs 1 to 3 first
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4. Does year one make money?Fill in tabs 1 to 3 first
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5. When you reach break evenFill in tabs 1 to 3 first
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WHAT YOUR NUMBERS ARE TELLING YOU
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Nothing to enter here. A plain-language read of those answers. It updates as you fill in the tabs.
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Fill in the tabs to see what your numbers mean.
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CUSTOMIZE THE DROPDOWNS
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One dropdown drives this workbook: customer payment timing, above. Its choices are Same month, or Net 30 (customers pay the following month).
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To change the wording of drop-down options, choose Unhide on bottom tab, open the Settings tab, and edit the existing options there. (not recommended)
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A free tool provided courtesy of Leadership-Tools.com
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