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RosaKufner / stiland.com

A platform for designers, producers and clients
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Financial Statements #4

Open fdelgrosso opened 5 years ago

RosaKufner commented 5 years ago

Coach for this: Sonia Weiss from Complete consulting Bolzano

fdelgrosso commented 5 years ago

Uploaded first version, ABSOLUTELY INCOMPLETE. I need you to check Assumptions and fine-tune the numbers. By Sunday I will finish to balance the model

userncris commented 5 years ago

There is a high degree of subjectivity in the projected figures so there as much subjectivity in my following comments:

1) Given the semi-luxury targeted segment I don't consider a 120% yearly increase in transactions very realistic, at least in the first 2/3 years. For the same reason 500 as average amount of order seems unrealistic. I think abut a more "flat" exponential trend.

2) Returned orders can be an issue. Especially because we are dealing with creativity. Customers who are dealing with designers might not be entirely satisfied by the final product and return it. Let's see what happens increasing to 10%.

3) SEO and advertising revenues and costs should be better researched taking into consideration what Claudio D'Angeli told us. And doing a trial ourselves. But for starting they seem reasonable.

4) I think more research/consultancy is needed over the tax assumption. There should be some facilitations such as increased amortization for new companies (not useful in our case with low fixed capital)? or reduced marginal rate of corporate tax...But it's better to keep a worst-scenario appropach when estimating tax assumptions.

5) I think that for us the duration of the "production cycle" is critical: how would presumably last on average the process of choosing the product, its customization and finally its production and delivery (e-commerce part between manufacturer and customer)? How long would be on average the same process including designer(s)? (much longer I guess, since it involves negotiations...) This have an impact on the time by which we receive our fees and thus on our revenues.

6) Interest on debt seems low. Debt from banks?

7) Would be useful to have an estimation of ROI/ROC/IRR based on the net cash flows. Or another indication of the return on investment in terms of multiples. I've tried to calculate NPV from cash flows and I've obtained a negative figure.

RosaKufner commented 5 years ago

@userncris Can you please write your improvement suggestions directly in Filippos assumptions. It needs to much time for me to read through. I need to see the change. Thanks

fdelgrosso commented 5 years ago

Cristian posted excellent points. Let´s do some sensitivity on Monday.

fdelgrosso commented 5 years ago

Cool, I´ve just uploaded the operational version of the Financial Model. All issues should be solved, there are some missing elements (VAT, IRAP, Tax Credit) but are all minor at this point. You can play with it, just modify the Assumptions Inputs. The most relevant task is to validate the Assumptions and get reliable Income and Cash projections. Once we are good, I will draft the Finance chapter on our Business Plan.

RosaKufner commented 5 years ago

Founding costs Modell Malta (see in proposal in google folder) 1800 per year virtual Office Malta 600 Accounting 1200 Annual financial statement 2000 general manager in Malta 2000 Holidng Ltd 1200 TOTAL 8300

Let’s not mention Malta and the e-residency in Estonia, but this is the cheapest. And we are sure about this figures. So we can use them for the financial projections.