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Cashflow Guidelines
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IMPORTANT - Do not edit anything with a blue background (it will affect the cell formulas)
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Please ensure the Start Up Cost sheet is filled out. State how much money you need for each item and specify the sources of financing where : Grant, Futurpreneur, BDC, Owner’s Contribution (investment), or another loan.
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Transfer the amounts from the Start Up Cost sheet to the cashflow (i.e. Owner’s Investment and Grant). In the example provided the cashflow matches the amounts on the Start Up Cost sheet: Owner’s Contribution (Investment): $1,250 and Grant: $3,500 (total of $4,750).
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Under Other Disbursements in the cashflow, the Start Up Costs must match the Start Up Cost sheet -- less working capital. In this example, the Start Up Costs add up to $4,000 (which is $4,750 less $750 in working capital).
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Start the cashflow in the month you expect to receive the GRANT, regardless whether you have started the business or not.
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Cumulative cashflow line (J) must always be positive for each and every month. If it is negative, you will need to adjust your expenses or find additional sources of funds to cover the shortfall.
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Please remember in order to have a sustainable business you will need to pay yourself. In the first few months your draw may be limited, however, you will need to show you can support yourself (and family where applicable).
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The projected Income Statement is automatically calculated once you fill in the cashflow.
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Set aside 25% of any profit you make (see income statement) and ensure you include it in the Income Tax line of the cashflow.
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Please explain your Sales Forecast Assumptions, found at the top of the cashflow, on a separate sheet. For example you could state:
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Sales Forecast Example
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September: $0 sales. Opening month and will be actively calling on 20 stores week. $300 will be spent on producing a top quality leave behind package for purchasing managers of retail stores.
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October: From our previous months selling and marketing we estimate 2 stores to purchase 5 of our high end products and one of mid-range product.
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Continue explaining Sales Forecast for each month in Year One.
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This will help you to articulate your marketing strategy in terms of specific marketing activities. Sales are a direct result of your marketing efforts. You will need a consistent, active marketing approach to achieve your sales target. The dollars spent in the Advertising and Promotions line in your cash flow will be explained in your Sales Forecast .
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Grant Guidelines
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Tax Treatment of award
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The starter company grant is considered taxable under the Canada and Ontario Income Tax Acts. A T4A slip will be issued to the recipient of the award.
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Commitments:
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Any misuse of the initial grant amount may result in the denial of the final disbursement and/or repayment of the initial disbursement
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All elements of the program must be completed in order to receive the final award; this includes but is not limited to the following:
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*Confirmed participation in training program and mentor meetings
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* Completion of milestone worksheets
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* Provision of documentation and receipts as required
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