BU121 Lecture Notes - Lecture 9: Operating Cash Flow, Cash Flow, Inventory Turnover
Document Summary
Bu121 class 9 entrepreneurial finance cont post mid-term. Start-up financial metrics (what you need to measure): (text pg 176) Sales forecast, headcount (# of ppl hired), expenses (fixed and variable), breakeven. Inventory turnover - large cost if your carry inventory. Occupancy large fixed costs and need to fill seats, beds etc. Qualified leads internet based venture; acquisition, retention, revenue, viral coefficient putting a # to everything. Cac must be < lcv, or not making 14575 Cost of revenue must be > cost of salesperson. Customer acquisition costs (cac) vs lifetime customer value (lcv) No formula projections based on research and logic = educated guess and defendable. And forecast depends on plan scalability; or am i limited in growth potential. What you can do given capacity and marketing plan. Consider geographic market you are operating in and seasonality of sales. Compare to breakeven what you have to make. Assumptions to base success on (text pg 194)
