Startup Financial Projection Query

[philpense]

Need an experienced individual to explain the elements of the financial projection. I understand the basics of cells, rows. columns and formulas but require a greater command. The template I am using is uploaded to: https://skydrive.live.com/redir?resi...EF5CA68BF3!209

Much thanks in advance for proper guidance.

Phil Pense

[BB1972]

Hi Phil, welcome to the forum.

I suggest you upload your worksheet to this site - we're not all keen to head off to third-party sites, when files can be uploaded here.

[philpense]

Brendan

Much thanks for the timely reply. I see an attach option on this reply and will attempt the upload. Got this template from a similar site. It has been my experience that the contents of a cell can be altered/corrupted simply by opening it. I need to have a working command of this particular file and to defend the projections before a panel.

Thank you

[BB1972]

Phil,

The workbook uploaded just fine.

If you are, as you state in your opening post, looking for someone "to explain the elements of the financial projection", you may be on the wrong forum. The main thrust of this forum's activity is to assist those who are having problems with / carrying out a particular task in Excel. You appear to have a functioning workbook, the working of which you want explained to you, so that you can stand over/defend its projections - is this correct?

[philpense]

Greetings Brendan:I

Yes... That is what I seek. Have searched dozens of excel sites and articles none of which offer a systematic process to enter reasonable assumptions nor troubleshooting to identify a less than convincing spreadsheet. If there is such a such guidance I have no objection to being handed off to another.I want to know how a potential investor would look at my projections and decide if the numbers are plausible or not. Have searched for months and not found this kind of guidance. I thank you for your efforts.

[BB1972]

Hi Phil,

Have searched dozens of excel sites and articles none of which offer a systematic process to enter reasonable assumptions nor troubleshooting to identify a less than convincing spreadsheet.

I'm not sure I've ever come across (on the internet) what I have underlined from your quote, either - I think these are the kind of strategies that one develops through use of Excel, or other programs.

From my own point of view and experience, a prerequisite to testing the mathematical output of a spreadsheet is sufficient mathematical knowledge to be able to work out the figures yourself, using pen and paper, a calculator, or simple + - * and / in Excel. Only when this has been done can you check the spreadsheet output for accuracy, as how else would you know if you're outputting the correct answer or not?

Another (likely obvious) prerequisite is a familiarity with, and knowledge of, Excel, and some of its functions. I see from your spreadsheet that it includes SUM, IF, OFFSET, ROUND, ABS, MIN functions. If you are not already familiar with these, Excel's own help facility provides a generally useful explanation of all its functions, with often straightforward examples of the individual functions. There are also countless (and often better) examples and tutorials available on the internet, should you find what's offered up by Excel's help isn't clear enough.

I want to know how a potential investor would look at my projections and decide if the numbers are plausible or not.

Forgive me for saying this, but, if you cannot make that determination yourself - whether or not the numbers are plausible - then perhaps you shouldn't be offering your projections to potential investors.

Have searched for months and not found this kind of guidance.

I can't honestly say I'm surprised. I get the sense that you don't quite realise what a big ask your request is - to reassure you that the projections in your workbook can be stood over, one would need to take all the figures from it, do the hard maths to make sure that the Excel output is mathematically sound; if not, figure out why not; and, it appears, explain it all back to you.

I don't know about anyone else on this forum - and you're free to bump this topic every now and then so people know it's not solved - but between working full-time, studying part-time, and doing the other miscellaneous things that make up "living", I would have neither the time nor the inclination to engage in something like this on a forum where I participate in the little free time I have, on a voluntary basis. I think, respectfully, the months you've spent searching might have been better spent with an Introduction to Financial Analysis and/or Introduction to Excel book.

I hope that doesn't sound unduly harsh, because it isn't intended to be; and I genuinely wish you good luck, but I'm going to bow out here.

All the best.

[philpense]

Brendan:

You have been more than courteous throughout this thread. Please note that I should have added that I have posted this question in a far simpler form and gotten the most vague replies imaginable. I wanted to learn what the top 3 or 4 things a potential investor would look at to estimate a viable startup. Obviously, revenues should exceed expenses but I have yet to find a systematic sequence of items to examine on a spreadsheet. I thank you just the same.