Forecast Revenues and CostsPowerPoint PresentationSlide 3Financial PlanSlide 5Slide 6Revenue DriversCost of Revenue DriversOperating Expense DriversSlide 10Financial DynamicsFinancials Spreadsheet TemplateForecast Revenues and CostsStephen Lawrence and Frank MoyesGraduate School of BusinessUniversity of ColoradoBoulder, CO 80309-0419Financial PlanIncome StatementBalance SheetCash FlowSummaryAssumptionsOperating Expenses Year 1 Year 2 Year 3Marketing 30 45 65R & DAdministration Total 60 90 140 Cost of Goods Year 1 Year 2 Year 3Direct 70 130 160Indirect 30 70 90Total 100 200 250 Income Statement Year 1 Year 2 Year 3Revenue 250 350 500COG’s 100 200 250Oper Expenses 60 90 140Fixed Assets (Plant) Year 1 Year 2 Year 3Assets 200 300 400Depreciation 140 210 260 Fixed Assets 60 90 140 Working Capital Year 1 Year 2 Year 3Receivables 100 200 300Inventory 50 75 125 Balance Sheet Year 1 Year 2 Year 3Receivables 100 200 300Inventory 50 75 125Fixed Assets 60 90 140Revenue DriversNumber of customers, transactions or units Price per customer, transaction or unitAverage revenue per customer or transactionDistribution channel discountMarket penetrationResponse rateChurn rate Growth rateNew services or productCost of Revenue DriversPersonnel costs (labor and/or salary)Materials costsYieldsWebsite operating costsSystems costsWarehouse and shipping expensesReturnsOutsourcing expensesLease and/or rental expensesCost reductionsDepreciation large capital expendituresOperating Expense DriversSales & Marketing–Customer acquisition cost–Personnel expenses–Sales commissions–Exhibitions–Brand building–Tech support–Customer serviceOperating Expense DriversResearch and Development–Personnel expenses–Beta testing–Time to market–Patent and copyright application –Prototyping–SubcontractingGeneral and Administration–Personnel expenses–Recruiting expenses–MIS expenses–Office rent and utilitiesFinancial DynamicsWho does the financial projections?Investor questionsDriversOptimism vs. PessimismFinancials Spreadsheet