This workbook contains some sample spreadsheets from

The Definitive Business Plan

The Fast Track to Intelligent Business Planning for Executives and Entrepreneurs
by Richard Stutely
Published by Financial Times Prentice Hall Pearson Education Ltd 1999. ISBN 0 273 63930 7
This workbook copyright 1999 Richard Stutely. All Rights Reserved.
The spreadsheets in this workbook are made available for review by students.
The author accepts no responsibility for the use of this material.
Further information is available at:
www.defintivebusinessplan.com
Email the author at:
Richard Stutely at The Definitive Business Plan

What you entered:

A
1
2
3
4

14

28
29
30
31
32
33
34
35
36

Operating costs
Year
Salaries

Telecomms

Sundry costs
Total expenditure

=A3
='GROSS'!A99
Less expenditure
Net profit

Only three new figures

B

1999
10,000

1,000

='SUNDRY'!B45
=SUM(B4:B28)

=B3
=B4

=B9*1.02

='SUNDRY'!C45
=SUM(C4:C28)

=C3
=C4

=C9*1.02

='SUNDRY'!D45
=SUM(D4:D28)

=D3
=D4

=D9*1.02

='SUNDRY'!E45
=SUM(E4:E28)

=E3
=E4

=E9*1.02

='SUNDRY'!F45
=SUM(F4:F28)

=B3
='GROSS'!B99
=B29
=B33-B34

=C3
='GROSS'!C99
=C29
=C33-C34

=D3
='GROSS'!D99
=D29
=D33-D34

=E3
='GROSS'!E99
E29
=E33-E34

=F3
='GROSS'!F99
=F29
=F33-F34

What you see:

A
1
2
3
4

14

28
29
30
31
32
33
34
35
36

Operating costs
Year
Salaries

Telecomms

Sundry costs
Total expenditure

1999
10,000

1,000

143
23,967

2000
10,000

1,020

453
25,333

2001
10,000

1,040

122
24,666

2002
10,000

1,061

36
24,921

2003
10,000

1,082

445
24,921

P&L summary
Year
Gross profit
Less expenditure
Net profit

1999
45,654
23,967
21,687

2000
34,566
25,333
9,233

2001
37,543
24,666
12,877

2002
35,467
24,921
10,546

2003
35,468
24,921
10,547

What it means:
A
1
2
3
4

14

28
29
30
31
32
33
34
35
36

Operating costs
Year
Salaries

Telecomms

Sundry costs
Total expenditure

1999 Each cell displays the value in the cell to its left incremented by 1
10,000 Each cell displays the value from the cell to its left

1,000 Each cell displays the value in the cell to its left increased by 2%

Each cell displays the corresponding value from the worksheet called 'Sundry'
Each cell displays the sum of the values above

P&L summary
Year
Gross profit
Less expenditure
Net profit

Each cell displays the coresponding value from row 3

Each cell displays the coresponding value from row 29
Each cell displays the coresponding value the worksheet called 'Gross' (profit)
Each cell displays the value in row 33 less the value in row 34

CONFIDENTIAL - CSRI Ltd

SafeTRAK Inc Financial plan

Note: Figures in blue are estimates
Sales, costs & prices, first five years
Eurodollars

Figures in red are from other analyses.

All other figures are calculted from the above
Year 1

Year 2

Year 3

Year 4

Year 5

No. of channel partners

11

15

20

No. of sales per partner

12

12

12

Total no.channel sales

21

132

180

240

Line 7 x line 8

Direct sales
Total no. sales

0
4

0
21

0
132

0
180

0
240

Line 9 + line 10

960

2,000

2,500

2,500

2,500

3,840

42,000

330,000

450,000

600,000

Line 11 x line 14

21

132

180

240

Line 11 x line 15

Channel arithmetic

Average volumes per sale

Hardware
Software
Total sales volumes
Hardware
Software
Cost of production per item
Hardware

25

23

12

11

10

Software

500

500

500

500

500

Channel price per item

Hardware

80

50

45

41

36

3,500

2,500

3,000

3,000

3,000

Hardware

220

122

275

275

275

(Line 26 / line 22 -1) x 100

Software

600

400

500

500

500

(Line 27 / line 23 -1) x 100

76,800

100,000

112,500

101,250

Software
Mark up, %

Price per package

Hardware
Software
Total

91,125

Line 14 x line 27

3,500

2,500

3,000

3,000

3,000

Line 15 x line 28

80,300

102,500

115,500

104,250

94,125

Line 34 + line 35

Year 1

Year 2

Year 3

Year 4

Year 5

SafeTRAK Inc Financial plan

Sales, costs & prices, first five years
Eurodollars
Hardware inventory volume
Opening stock
Additions (production)
Reductions (sales)
Closing

1,160

1,160

1,160

1,160

5,000

42,000

330,000

450,000

600,000

- 3 840

- 42 000

- 330 000

- 450 000

- 600 000

1,160

1,160

1,160

1,160

1,160

Line 47, previous period

Based on line 18
Line 18
Line 44 + line 45 + line 46

Hardware inventory value (FIFO)

Opening stock

29,000

31,900

49,880

87,232

Additions (production)

125,000

945,000

3,960,000

4,860,000

5,832,000

Reductions (sales)

-96,000

-942,100

-3,942,020

-4,822,648

-5,756,043

29,000

31,900

49,880

87,232

163,189

Line 50 + line 51 + line 52

29,000

Line 59, previous period

Closing stock

Line 53, previous period

Line 22 x line 45

Hardware inventory value (LIFO)

Opening stock

29,000

29,000

29,000

Additions (production)

125,000

945,000

3,960,000

4,860,000

5,832,000

Line 22 x line 45

Reductions (sales)

-96,000

-945,000

-3,960,000

-4,860,000

-5,832,000

Line 22 x line 46

29,000

29,000

29,000

29,000

29,000

Closing stock

Line 56 + line 57 + line 58

SafeTRAK Inc Financial plan

((Line 46 - line 47

Gross profit, first five years

x line 22 + line 53

in previous period
Eurodollars
Year 1

Year 2

Year 3

Year 4

Year 5

Hardware

307,200

2,100,000

14,850,000

18,225,000

21,870,000

Line 18 x line 26

Software

14,000

52,500

396,000

540,000

720,000

Line 19 x line 27

321,200

2,152,500

15,246,000

18,765,000

22,590,000

Line 67 + line 68

Hardware

96,000

945,000

3,960,000

4,860,000

5,832,000

Line 18 x line 22

Software

2,000

10,500

66,000

90,000

120,000

Line 19 x line 23

98,000

955,500

4,026,000

4,950,000

5,952,000

Line 72 + line 73

Hardware

211,200

1,155,000

10,890,000

13,365,000

16,038,000

Line 67 - line 72

Software
Total

12,000
223,200

42,000
1,197,000

330,000
11,220,000

450,000
13,815,000

600,000
16,638,000

Line 68 - line 73
Line 77 + line 78

Hardware

69

55

73

73

73

Line 77 / line 67

Software

86

80

83

83

83

Line 78 / line 68

Total

69

56

74

74

74

Line 79 / line 69

Gross sales

Total
Cost of sales

Total
Gross profit

Gross profit margin, %

178760621.xls.ms_office/8. 9. 10. safeTRAK annual - 10/8/2013 - 4:07 PM

CONFIDENTIAL - CSRI Ltd

Eurodollars

STAFF NUMBERS
Directors/managers
Technical staff
Marketing staff
Administrative staff
Total

S-1
S-2
S-3
S-4
S-5
S-6
S-7
S-8
S-9
S-00
S-11
S-13
S-14
S-15
S-10
S-21
S-22
S-23
S-24
S-25
S-26
S-27
S-28
S-20
S-31
S-32
S-33
S-34
S-36
S-38
S-39
S-30
S-00

STAFF COSTS
Staff salaries
Technical staff 1
Technical staff 2
Technical staff 3
Technical staff 4
Sales/distribution manager
Marketing assistant
Book-keeping, etc
Receptionist/secretary
Messenger/security
TOTAL (sum S1 to S9)
Directors' stipends
Contract staff
Staff social security
Staff temporary
TOTAL DIRECT (11 to 19)
Staff pension fund
Staff termination fund
Staff rent allowances
Staff transport allnces
Staff other allowances
Staff group insurance
Staff medical insurance
Staff other benefits
TOTAL BENEFITS (21 to 29)
Staff medical expenses
Staff recruitment
Staff relocation
Staff legal expenses
Staff training
Staff entertainment
Staff sundry
TOTAL OTHER (31 to39)
TOTAL STAFF (10+20+30)

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

H1

3
2
0
2
7

3
4
1
2
10

3
4
1
2
10

3
4
2
2
11

3
4
2
2
11

3
4
2
3
12

3
4
2
3
12

1,200
1,200
.
.
.
.
.
600
300
3,300
10,000
10,000
92
0
23,392
417
0
0
0
0
0
500
0
917
0
0
0
1,500
0
70
0
1,570
25,879

1,200
1,200
1,200
1,200
.
750
.
600
300
6,450
10,000
10,000
162
0
26,612
417
0
0
0
0
0
0
0
417
0
0
0
0
0
100
0
100
27,128

1,200
1,200
1,200
1,200
.
750
.
600
300
6,450
10,000
10,000
162
0
26,612
417
0
0
0
0
0
0
0
417
0
0
0
0
0
100
0
100
27,128

1,200
1,200
1,200
1,200
1,250
750
.
600
300
7,700
10,000
10,000
185
0
27,885
417
0
0
0
0
0
0
0
417
0
0
0
0
0
110
0
110
28,411

1,200
1,200
1,200
1,200
1,259
750
.
600
300
7,709
10,000
10,000
185
0
27,894
417
0
0
0
0
0
0
0
417
0
0
0
0
0
110
0
110
28,420

1,200
1,200
1,200
1,200
1,250
750
750
600
300
8,450
10,000
10,000
208
0
28,658
417
0
0
0
0
0
0
0
417
0
0
0
0
0
120
0
120
29,194

7,200
7,200
6,000
6,000
3,759
3,750
750
3,600
1,800
40,059
60,000
60,000
992
0
161,051
2,500
0
0
0
0
0
500
0
3,000
0
0
0
1,500
0
610
0
2,110
166,161

Month 1
1,000
0
500
1,500
0
0
100
100
100
50
50
400
0
2,500
100
250
2,850
0
0
500
50
550
0
0
0
0
0
0
0
100
5,000
0
5,100
0
1,000
0
1,000
1,000
100
0
1,100
12,500

Month 2
1,000
542
500
2,042
83
0
100
25
100
50
50
408
0
2,500
100
250
2,850
556
208
0
50
814
0
5,000
2,500
5,000
12,500
0
0
100
10,000
0
10,100
0
2,500
0
2,500
2,500
100
0
2,600
33,814

Month 3
1,000
542
500
2,042
83
0
0
25
100
50
50
308
0
2,500
100
250
2,850
597
208
0
50
856
500
2,500
0
5,000
8,000
0
0
100
10,000
0
10,100
0
1,000
0
1,000
0
100
0
100
25,256

Month 4
1,000
542
500
2,042
83
13
0
25
100
50
50
321
0
2,500
100
250
2,850
597
208
0
50
856
1,000
0
0
0
1,000
0
0
100
10,000
0
10,100
0
0
0
0
0
100
0
100
17,268

Month 5
1,000
542
500
2,042
83
13
0
25
100
50
50
321
0
2,500
100
250
2,850
625
208
0
50
883
300
0
0
0
300
0
0
100
10,000
0
10,100
0
0
0
0
0
100
0
100
16,596

Month 6
1,000
542
500
2,042
83
13
0
25
100
50
50
321
0
2,500
100
250
2,850
625
208
0
50
883
2,500
0
0
0
2,500
0
0
100
10,000
0
10,100
0
0
0
0
0
100
0
100
18,796

H1
6,000
2,708
3,000
11,708
417
38
200
225
600
300
300
2,079
0
15,000
600
1,500
17,100
3,000
1,042
500
300
4,842
4,300
7,500
2,500
10,000
24,300
0
0
600
55,000
0
55,600
0
4,500
0
4,500
3,500
600
0
4,100
124,229

SafeTRAK Inc, Financial plan

Operating costs, first six months
Eurodollars

E-11
E-12
E-13
E-10
E-21
E-22
E-23
E-24
E-25
E-26
E-27
E-20
E-31
E-32
E-33
E-34
E-30
E-41
E-42
E-43
E-45
E-40
E-51
E-52
E-55
E-59
E-50
E-61
E-62
E-63
E-64
E-65
E-60
E-71
E-72
E-75
E-70
E-83
E-85
E-86
E-80
E-00

Premises rental & taxes

Amort'n - lease improvements
Utilities
TOTAL OCCUPANCY
Dep'n - office furniture
Dep'n - office equipment
Small equipment
Stationery & printing
Dues & subscriptions
Books & periodicals
Other office
TOTAL OFFICE
Depreciation - coms. equipment
Telephone & fax
Information services
Postage & courier
TOTAL COMMS
Depreciation - computers
Depreciation - software
Other software licences
Computer consumables
TOTAL COMPUTERS
Product distribution
Brochures and printing
Promotional items
Other marketing
TOTAL MARKETING & SALES
Depreciation - vehicles
Rental - vehicles
Motor vehicle expenses
Travel & subsistence
Entertainment
TOTAL TS&E
Audit fees
Legal fees
Other professional fees
TOTAL PROFESSIONAL FEES
Insurance
Sundry expenditure
Other
TOTAL OTHER
TOTAL EXPENDITURE

178760621.xls.ms_office/9. 10. safeTRAK monthly - 10/8/2013 - 4:07 PM

Net present value

Cell B1 displays the
NPV because it
contains this formula

Internal rate of return

Cell D3 displays the
IRR because it
contains this formula

=NPV( B3 , B5:B14 )

Dummy

=IRR( D5:D14 , 0.1 )

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

A
Net present value
Rate
Period 1
Period 2
Period 3
Period 4
Period 5
Period 6
Period 7
Period 8
Period 9
Period 10

B
976

10.00%

25%

-1000
80
300
400
-200
100
400
800
1000
1000

-1000
80
300
400
-200
100
400
800
1000
1000

G
Memo
Cumulative
-1000
-920
-620
-220
-420
-320
80
880
1880
2880

CONFIDENTIAL

1
2
3
4
5
6

24

51
52
53
54
55

1
2
3
4
5
6

24

51
52
53
54
55

1
2
3
4
5
6

24

51
52
53
54

Business Plan Figures - 13.10 Budget health check

A
B
ZXTY International
Marketing Department
Budget for calendar year 20xx
Local currency
Jan
Salaries
10,000

Travel
5,000

Total spending
400,050
Contingency
40,005
Total spending
440,055
Cumulative
440,055

Feb
10,000

5,500

410,150
41,015
451,165
891,220

A
B
Marketing Department
Outturn for January to June 20xx
Local currency

Salaries

Travel

Total actual
Unused contingency
Total budget
Cumulative, actual

Jan
9,986

5,120

399,457
40,598
440,055
399,457

Feb
9,986

5,977

420,435
30,730
451,165
819,892

A
B
Marketing Department
Budget report, June 20xx
Local currency

Salaries

Travel

Total spending
Contingency used
Total spending

Actual
11,004

5,995

458,204
58,454
458,204

Mar
10,000

4,000

385,450
38,545
423,995
1,315,215

Mar
10,125

5,450

399,499
24,496
423,995
1,219,391

Month of June
Budget Variance
10,000
1,004

5,000
995

399,750
58,454
39,975
18,479
439,725
18,479

Salaries within acceptable % variance

but check if Marketing recruited
above headcount budget in June
or conceded big pay increases

178760621.xls.ms_office - 13.10 Budget health check - 10/8/2013 - 4:07 PM

Apr
10,000

4,500

433,000
43,300
476,300
1,791,515

Apr
10,125

5,569

451,397
24,903
476,300
1,670,788

Var, %
10.0

19.9

14.6
46.2
4.2

May
10,000

4,750

453,200
45,320
498,520
2,290,035

May
10,125

5,420

490,364
8,156
498,520
2,161,152

Actual
61,351

33,531

2,619,356
137,756
2,619,356

Total spending was high in June.

Contingency for month was exceeded
by 46% (worrying) BUT less than half
the contingency for Jan-June was
consumed (good) and overall spending
is 4% below the total provision.

Jun
10,000

5,000

399,750
39,975
439,725
2,729,760

Jun
11,004

5,995

458,204
-18,479
439,725
2,619,356

Year to
end June
60,000

28,750

2,481,600
248,160
2,729,760

Year to
end June
61,351

33,531

2,619,356
110,404
2,729,760

Year to end June

Budget Variance
60,000
1,351

28,750
4,781

2,481,600
137,756
248,160
-110,404
2,729,760
-110,404

Var, %
2.3

16.6

5.6
-44.5
-4.0

Travel is running over budget.

Check and control or revise budget

Copyright 1998, Richard Stutely