The forecast
The Business Plan forecast: monthly profit and loss, cash flow, balance sheet and KPIs in whole cents, an integrity check, break-even, lowest cash and funding need.
Assumptions go in; a monthly profit and loss, cash flow (indirect), balance sheet and KPIs come out.
- Revenue streams: subscription, units or billable hours, with growth, churn, seasonality and costs per unit.
- People: roles with gross monthly pay and on-costs per country.
- Running costs and investments, with useful life.
- Funding: equity, loans and grants.
- Horizon: one, two, three or five years.
Amounts are whole cents, so the balance sheet balances exactly. An integrity check proves that the statements agree; if they do not, no number is read from the model.