Once we create a business model canvas for our business idea, how do we proceed in making a financial plan? How do we assess if it's in principle financially feasible? How do we create income statements, cash flows and do break-even analysis. This workshop was aimed to bridge the gap between BMC and financial plan aimed to aid entrepreneurs struggling with financial statements. If you found this helpful or have suggestions I would love to read it in the comments section.
19. Assume Assume (B x C) D x 4 E x 2QR F x 12 E x 10QR K x 12
A B C D E F J K L
Day Visitors %
Buying
Customers/
cups sold
Cups
Sold/month
Cost/month Cost/year Sales/month Sales/Year
Sunday 150 15% 23 90 180 2,160 900 10,800
Monday 150 15% 23 90 180 2,160 900 10,800
Tuesday 150 15% 23 90 180 2,160 900 10,800
Wednesday 150 15% 23 90 180 2,160 900 10,800
Thursday 1,000 15% 150 600 1,200 14,400 6,000 72,000
Friday 1,500 15% 225 900 1,800 21,600 9,000 108,000
Saturday 800 15% 120 480 960 11,520 4,800 57,600
Total 3,900 585 2,340 4,680 56,160 23,400 280,800
Yearly Lemonade Sales & Costs
20. Income Statement (2015)
Sales Revenue 303,264
Sales 280,800
Tips (5% of sales) 14,040
Ads (3% of sales) 8,424
COGS 176,160
Cups Costs 56,160
Salaries 96,000
Rent 24,000
Gross Margin 127,104
Profit Margin 42%
Other Expenses 30,000
Marketing 24,000
Misc. 6,000
Net Income 97,104
NI/Sales % 32%
Costs of goods & services
in a year
Sales of lemonade cups
sold in a year
Profit at end of year
Net Income / Sales Revenue x 100%
Non-Operational Costs
Sales Revenue - COGS
Gross Margin / Sales revenue x 100%
24. Fixed Costs: stay the
same regardless of
output (i.e. rent,
insurance, marketing,
labor)
Variable Costs: changes
as level of output
changes
Total Costs = Fixed costs
+ Variable Costs
Q: How do we reduce
break-even level?
Profit = ZERO
B = (Fixed Costs) / (Price – Variable)
25. Price: 10 QR/cup Variable Cost: 2 QR Fixed Cost: 150,000 QR
B = (Fixed Costs) / (Price – Variable)
B = (150,000) / (10 – 2)
=18,750 Lemonade Cups
18,750
187,500 QR
ProfitLoss