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S43 Cashflow

George Morgan
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Page no: S43
Questions Answers

Cash flows

#2 (Steps to Revenue)

Identify all of the steps before money is deposited in your bank account. Provide a numbered list of the steps that must occur before you receive a payment in your bank account from your Archetype Customer with your One Revenue Model. For each step, write the name of the step, the approximate timing for the step to be completed in Minutes, days or weeks, and a couple of sentences that describe what needs to happen for that step to be completed. A description of Steps to Revenue is available here (https://FI.co/guides/revenue_steps). Consider ways to dramatically reduce the number of steps or reduce the amount of time for each step. Discuss the steps that you have identified with your Working Group and write a bulleted list of the feedback received from your peers. (2 Hours)


Option A: Monthly based revenue
Step1) Subscribe for the service and pay installation tax. Give your credit cards in the beginning.
Step2) Get 1 month for free
Step3) After one month, you start paying
Step4) They pay with Stripe
Step5) Money arrives after 2 days
Step6) You charge the credit card every first day of the month 

Option B: Contract-based Revenue

Step 1) Sign contract for 6, 12 or 18 months

Step 2) Choose a method of payment: Bank wire, Credit/Debit card or Paypal

Step 3) Generate an invoice

Step 4) Pay the invoice via bank

Step 5) Money arrives the next day



Option C: Contract-Based  + Additional services

Step 1) Sign contract for 6, 12 or 18 months

Step 2) Choose a method of payment: Bank wire, Credit/Debit card or Paypal

Step 3) Generate a report for the used services for the month

Step 4) Generate invoice for monthly subscription and the additional services

Step 5) Pay the invoice via bank

Step 6) Money arrives the next day



#5 (Sales)

Encourage a number of people that resemble your Customer Archetype to buy your solution. For B2B solutions, get one or more customers to buy the product by getting a full sale, an initial down payment or signing an LOI. For B2C solutions, get five or more customers to pay for manual delivery of the solution or, if your solution is not ready or you can not manually deliver the solution, get at least twenty customers to provide contact and demographic information on a Landing Page or site that displays the target pricing. Write the amount of revenue that you have secured, specify the amount of time that it has taken you to collect the revenue, identify the number of customers that you reached out to and the number of customers you acquired. Write a paragraph describing the process, including an outline of the material used, the steps taken and the lessons learned. Provide a bulleted list of any materials that were used with links. (5 Hours)


#11 (Financial Model)

(Mentor Review)

Develop a simple Financial Model that focuses on expenses to understand your cash needs. Start by using the Revenue session work to develop a revenue forecast for 18 months, making sure to target at least USD $1 million in total revenue over this period, and factor in timing considerations from the Sales Follow-up work.

Identify any expenses that you expect to scale either with the growth of revenue or ahead of revenue growth, which are your cost of sales.

Then, examine the existing expenses that you have made to date, and project any recurring expenses out into the future with a reasonable growth rate, placing the expenses into standard categories.

Factor expenses required for you to live over the period of the plan and include any expenses required to set up the business in the Founder Institute. You can use this template for reference (http://fndri.com/2yLeU3y).

Provide a link to the Financial Model spreadsheet. (3 Hours)


Forecast 1 Million


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