financial planning using wyn plan v 3
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Financial Planning
for the
Emerging Growth Company
Using WynPlan SRDGrowing Business. Managing Success.
© C. F. Advisors 2010
Financial Planning for the
Emerging Growth Company
What is WynPlan SRD?
It’s a Sales Representative driven financial model developed in an
Excel 2007 spreadsheet specifically designed for small emerging
growth-oriented companies, from startup to over $50 million.
What are its Core Value Propositions?
It allows the non-financially trained business practitioner to:
1. Efficiently develop a robust financial plan,
2. Better understand the relationships between financial and
operational drivers, and
3. Dramatically improve resulting financial performance.
Financial Planning for the Emerging Growth Company
What are its reporting functions?
WynPlan SRD generates the following standard reports:
1. Assumptions (drivers) Summary:
(Drivers are KEY because they define Plan Performance)
2. Performance Reports:
P&L, BS, CF and more
Is it comprehensive?
Yes. It is comprehensive and complete. But we are always
available to answer a question or help as needed.
Financial Planning for the
Emerging Growth Company
The Financial Planning Process has:
A Beginning
When you to start your plan
Middle
The progression of defining company structure and drivers,
leading to the iterative process of revising, fine-tuning, optimizing
and What-IF-ing
End
This usually occurs when you run out of time
WynPlan will help you get started and fine-tune the plan until
it is a solid reflection of your business goals and objectives.
Financial Planning for the
Emerging Growth Company
LET’S DEFINE:
Company Structure
• Reporting Start Date (to a five year planning horizon)
• Plan Start Date
Department Structure
• Operations Department
• Sales & Marketing Department
• General & Administrative Department
• Research & Development Department
Financial Planning for the
Emerging Growth Company
Define Sales Plan
Requires combination of:
• Selling profile, with expectations of Sales Rep performance
over time, starting from the date-of-hire
• Sales Rep Hiring Plan including hire date, salary, commission
Example of Sales Plan
• Hire Sales Rep during Month 2
• Hire Senior Sales Rep during Month 9
Step 1: Define Selling Profiles for:
Sales Rep and Senior Sales Rep
Step 2: Define hiring dates for sales team (months 2 & 9).
Financial Planning for the
Emerging Growth Company
Sales Rep Profile Senior Sales Rep Profile
Combined Sales Performance
$0
$50
$100
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36
$0
$50
$100
$150
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36
$0
$50
$100
$150
$200
$250
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35
Senior Sales Rep
Sales Rep
Financial Planning for the
Emerging Growth Company
Gross Margin Performance Options
Fixed
Variable with TIME
Variable with Revenue
Define Headcount Plan
• Precedent triggers allow for “Rules for Hire”
• Structure headcount plan by department
• Include permanent as well as temporary employees
G & A Headcount Plan. (Before & After)
Financial Planning for the
Emerging Growth Company
Financial Planning for the
Emerging Growth Company
Define Expense Plan
Expenses defined per department
Expense start date linked to Plan start date
Up to three planning methods per expense item
Cash or Accounts Payable payment option per expense item
Three planning increment options per expense item, which allows
for an increase or decrease in granularity
Financial Planning for the
Emerging Growth Company
Define Current Assets – Relationships & Performance
Accounts Receivable
Immediate cash receipts (DSO = 0) plus receipts on account (DSO = user defined). Planned DSO is variable over time
Inventory
Days of on-hand inventory (variable over time) used as planning driver. Provision for COD payments as well as payments on account
Prepaid Expense
Expensed as a G & A expense over time specified
Financial Planning for the
Emerging Growth Company
Define Fixed Asset Requirements
Allows for (user defined) capitalization amount
Computer equipment acquired per employee (amount specified by department and depreciated over a maximum of five years)
Other computer equipment acquired (capital amount specified per month and depreciated over same number of years as above)
Other fixed assets (capital amount specified per month and depreciated over defined number of years)
Financial Planning for the
Emerging Growth Company
Define Current Liabilities Relationships & Performance
Accounts Payable
Days Payable used as driver (variable over duration of plan)
Accrued Liabilities
Included accrued interest as well as accrued sales commission
Other Current Liabilities
Represents accrued income tax liability
Financial Planning for the
Emerging Growth Company
Define Financing Plan
Equity Infusion
Start-up equity and two additional rounds
Bank Loan
Iterative process of revising and fine tuning drivers
Financial Planning for the
Emerging Growth Company
Iterative Process of Revision & Fine Tuning
Examine the Assumptions (Drivers) Report to develop awareness
as to what drives the plan. Identify potential changes.
Examine the Output (Performance) Report to develop awareness
as to how the plan performs. Pay attention to the Sales
Representative Detail sheet so as to understand Sales Rep
contribution.
Use the WynPlan ribbon on the Drivers sheet to monitor the effects
of changes to Drivers as a means of optimizing performance.
Financial Planning for the
Emerging Growth Company
When you run out of time and have to “finish” the Plan,
remember the two truisms of financial and business planning:
Always under promise and over deliver.
The BEST way to predict the future is to make it happen.
C.F. Advisors
wyn@wynplan.com
952 996-9091
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