Cash-flow Guidelines

Figures you input are based on your experience, research and business activity estimates.

On each sheet you will find navigation buttons on the left and Tips and Instructions on the right.

If you have already incurred business expenses add these to the Past Purchase form. If you have not made any purchases yet skip the past purchases step.

Resources:See the Glossary - Business Terms and Definitions for basic descriptions of terms and concepts.Futurpreneur Financing guidelines and loan details can be found on the Financing Guidelines tab and the Futurpreneur Canada website.

Visit our resource website for assistance with financial planning at http://www.futurpreneur.ca/en/resources/operational-and-financial-planning/

Welcome to the Futurpreneur Canada 24-month cash-flow planning tool. This tool will help you plan and demonstrate your businesses sales and expenses assumptions over the next two years.

The cash-flow template is divided into several parts to simplify the cash-flow creation. You can revisit and adjust your figures as you adjust your plan, but it is best to start working in order from start-up, to year one then year two cash-flow projections. The sheets are protected so you can only add information into the green cells. Yellow cells show data you entered on a previous sheet.

STEP 1 - COMPLETE THE START-UP tab. This is where you input the month you expect your Futurpreneur loan will be received, owners' contribution, loan amounts and start-up costs. Additional instructions and tips are found on the right side of each spreadsheet.

STEP 2 - COMPLETE THE YEAR 1 CASH-FLOW tab. This is where you input your first year' sales and expense projections. Do not include your past sales on this template. There additional instructions on the right side of the cash-flow.

STEP 3 - COMPLETE THE YEAR 2 CASH-FLOW tab. Continue with your sales and expense projections on the YEAR 2 CASH-FLOW.

If you have prepared this cash-flow using the Futurpreneur Canada online business plan writer, there are a few items you will want to review and edit as you finalize your cash-flow.

When using the Interactive business plan writer, Start-up - Inventory / Stock / Products costs will be grouped together as a single cost and not separated by inventory type or product price ranges. You may need to organize these costs by inventory type or price ranges to better demonstrate your initial Inventory / Stock / Products costs. We recommend you limit the categories to 3 - 4 at a maximum.

Sales Assumptions, Cash Sales and Inventory Costs on the Year One & Two Cash-Flows will not be broken down by inventory items, costing or services. You may need to separate the prices shown in the cash-flow by organizing them into inventory types, price ranges or service categories. This will show your sales and expenses assumptions more clearly. We suggest you start by organizing the Sales Assumptions first and do not use more than 3 or 4 different categories for cash-flows on year one and year two.

The Projected Income Statement is filled in automatically when you complete the year 1 and 2 cash-flows. The Income Statement will give you insight into the overall progress of the business.

Past Purchases - Items already bought for the businessItem Cost

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Item 2 $ -

Item 3 $ -

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Total Cost $ -

Start-up Costs

Funding Sources

Amount $0 $0 $0 $0 $0

Start-up Item Cost of Item

Lease - Leasehold ImprovementsFirst and last month rent (aka deposit)Building improvement costsLegal fees to review documentsArch drawingsGeneral Start-up CostsBusiness Insurance (paid monthly)Business License - IncorpEquipment & FixturesOffice Furniture (desk, filing cabinet)Computer, printer, fax machineAccounting System - POS systemAccounting Consultation to set up booksLegal fees to review contractsWebsite

START-UP COST SUBTOTALS 0 0 0 0 0 0 Inventory / Stock / Products (ONLY)retail price range [0 -$100] or service #1retail price range [$100 -$200] or service #2retail price range [$200 -$300] or service #3retail price range [over $300] or service #4INVENTORY / STOCK SUBTOTALS $0 $0 $0 $0 $0 $0TOTAL START-UP COSTS

START-UP & INVENTORY SUBTOTALS $0 $0 $0 $0 $0 $0

Available Cash in the BankWorking Capital $0 $0 $0 $0 $0 $0

TOTALS $0 $0 $0 $0 $0 $0Percentage Contributions NA NA NA NA NA NA

First Month of Futurpreneur Loan i.e. 04/14 is April 2014

Owner Will Contribute

Futurpreneur Loan Funding

BDC Loan Funding

Other Funding 1

Other Funding 2

Owner Will Contribute

Futurpreneur Loan Funding

BDC Loan Funding

Other Funding 1

Other Funding 2

3

65

2 My business will have at least 50% business ownership by an applicant(s) over 35 years of age.1

Cash Flow Forecast - Year 1

Month 1 2 3 4 5 6 7 8 9 10 11 12 TotalSales Assumptionsretail price range [0 -$100] or service #1 0 retail price range [$100 -$200] or service #2 0 retail price range [$200 -$300] or service #3 0 retail price range [over $300] or service #4 0 Cash from Sales Avg $ of Saleretail price range [0 -$100] or service #1 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 retail price range [$100 -$200] or service #2 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 retail price range [$200 -$300] or service #3 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 retail price range [over $300] or service #4 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 Total Cash Sales $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 Funding SourcesOwner Will Contribute - $0 Futurpreneur Loan Funding - $0 BDC Loan Funding - $0 Other Funding 1 - $0 Other Funding 2 - $0 Business Bank Account (Existing businesses only) $0 Total Other Cash Inflow 0 0 0 0 0 0 0 0 0 0 0 0 $0

(A) TOTAL CASH INFLOW 0 - - - - - - - - - - - $0 Cash Outflow % of sales costInventory Costsretail price range [0 -$100] or service #1 0% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 retail price range [$100 -$200] or service #2 0% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 retail price range [$200 -$300] or service #3 0% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 retail price range [over $300] or service #4 0% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 (B) TOTAL INVENTORY COSTS $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 General Expenses 1st Owner's draw/salary $0 2nd Owner's draw/salary, if necessary $0 Employee/contractor wages $0 Legal fees $0 Accounting services $0 Advertising and promotion $0 Commercial Rent $0 Property taxes/TMI $0 Utilities $0 Business Insurance $0 Bank Charges $0 Office supplies & postage $0 Telephone & Internet $0 Alarm System $0 Subscriptions & Memberships $0 Training $0 credit card transaction fee (2%) 2% - - - - - - - - - - - - $0

$0 $0 $0

(C) TOTAL GENERAL EXPENSES - - - - - - - - - - - - $0 Other disbursements TOTAL Start-up Costs - $0 Futurpreneur Loan Funding - Interest Payment + $15 monthly fee - - - - - - - - - - - - $0 Futurpreneur Loan Funding - Principal Payment - - - - - - - - - - - - $0 BDC Loan Funding - Interest Payment - - - - - - - - - - - - $0 BDC Loan Funding - Principle Payment - - - - - - - - - - - - $0 Other Funding 1 - Interest + Principal Payment $0 Other Funding 2 - Interest + Principal Payment $0

$0 (D) TOTAL OTHER DISBURSEMENTS 0 0 0 0 0 0 0 0 0 0 0 0 $0 (E) TOTAL CASH OUTFLOW (B+C+D) 0 0 0 0 0 0 0 0 0 0 0 0 $0

(F) NET CASH-FLOW (A-E) 0 0 0 0 0 0 0 0 0 0 0 0 $0

(G) CASH FROM PREVIOUS PERIOD 0 0 0 0 0 0 0 0 0 0 0 0 $0

(H) CUMULATIVE CASH-FLOW (F+G) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

2

Cash Flow Forecast - Year 2

Month 13 14 15 16 17 18 19 20 21 22 23 24 TotalSales Assumptionsretail price range [0 -$100] or service #1 0 retail price range [$100 -$200] or service #2 0 retail price range [$200 -$300] or service #3 0 retail price range [over $300] or service #4 0 Cash from Sales Avg $retail price range [0 -$100] or service #1 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 retail price range [$100 -$200] or service #2 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 retail price range [$200 -$300] or service #3 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 retail price range [over $300] or service #4 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 Total Cash Sales 0 0 0 0 0 0 0 0 0 0 0 0 $0 Owner's Investment $0

$0 Total Other Cash Inflow 0 0 0 0 0 0 0 0 0 0 0 0 $0 (A) TOTAL CASH INFLOW 0 0 0 0 0 0 0 0 0 0 0 0 $0 Cash OutflowInventory Costs % of sales costretail price range [0 -$100] or service #1 0% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 retail price range [$100 -$200] or service #2 0% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 retail price range [$200 -$300] or service #3 0% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 retail price range [over $300] or service #4 0% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 (B) TOTAL INVENTORY COSTS 0 0 0 0 0 0 0 0 0 0 0 0 $0 General Expenses 1st Owner's draw/salary $0 2nd Owner's draw/salary, if necessary $0 Employee/contractor wages $0 Legal fees $0 Accounting services $0 Advertising and promotion $0 Commercial Rent $0 Property taxes/TMI $0 Utilities $0 Business Insurance $0 Bank Charges $0 Office supplies & postage $0 Telephone & Internet $0 Alarm System $0 Subscriptions & Memberships $0 Training $0 credit card transaction fee (2%) 2% - - - - - - - - - - - - $0 - $0 - $0 - $0 (C) TOTAL GENERAL EXPENSES 0 0 0 0 0 0 0 0 0 0 0 0 $0 Other disbursements Start-up Costs $0 Futurpreneur Loan Funding - Interest Payment + $15 monthly fee - - - - - - - - - - - - $0 Futurpreneur Loan Funding - Principal Payment - - - - - - - - - - - $0 BDC Loan Funding - Interest Payment - - - - - - - - - - - - $0 BDC Loan Funding - Principal Payment - - - - - - - - - - - $0 Other Funding 1 - Interest + Principal Payment $0 Other Funding 2 - Interest + Principal Payment $0

$0 (D) TOTAL OTHER DISBURSEMENTS 0 0 0 0 0 0 0 0 0 0 0 0 0 (E) TOTAL CASH OUTFLOW (B+C+D) 0 0 0 0 0 0 0 0 0 0 0 0 0

(F) NET CASH-FLOW (A-E) 0 0 0 0 0 0 0 0 0 0 0 0 $0

(G) CASH FROM PREVIOUS PERIOD 0 0 0 0 0 0 0 0 0 0 0 0 $0

(H) CUMULATIVE CASH-FLOW (F+G) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Projected Income StatementYear 1 Year 2

RevenuesSalesretail price range [0 -$100] or service #1 0 0 retail price range [$100 -$200] or service #2 0 0 retail price range [$200 -$300] or service #3 0 0 retail price range [over $300] or service #4 0 0 (A) Total Sales $0 $0Inventory CostsOpening Inventory / Stock / Product (from startup) 0 retail price range [0 -$100] or service #1 0 0 retail price range [$100 -$200] or service #2 0 0 retail price range [$200 -$300] or service #3 0 0 retail price range [over $300] or service #4 0 0 (B) Total Cost of Inventory $0 $0(C) GROSS MARGIN (A-B) $0 $0 Expenses General ExpensesOwner's Draws/salaries 0 0 Employee/contractor wages 0 0 Legal fees 0 0 Accounting services 0 0 Advertising and promotion 0 0 Commercial Rent 0 0 Property taxes/TMI 0 0 Utilities 0 0 Business Insurance 0 0 Bank Charges 0 0 Office supplies & postage 0 0 Telephone & Internet 0 0 Alarm System 0 0 Subscriptions & Memberships 0 0 Training 0 0 credit card transaction fee (2%) 0 0 - 0 0 - 0 0 - 0 0 (D) TOTAL GENERAL EXPENSES $0 $0Other Disbursements Start up Costs 0 0 Futurpreneur Loan Funding 0 0 BDC Loan Funding 0 0 Other Funding 1 0 0 Other Funding 2 0 0 - 0 0 (E) TOTAL OTHER EXPENSES $0 $0(F) TOTAL EXPENSES (D+E) $0 $0

NET PROFIT BEFORE TAX (C-F) $0 $0Income Tax (estimated at 25%) $0 $0 NET PROFIT AFTER TAX $0 $0

Glossary - Business Terms and Definitions - Page 7

Glossary - Business Terms and DefinitionsThese are working definitions intended to help you complete this cash-flow

Owner’s Investment

Owner’s Draw/Salary

Fixed Assets

Fixed Costs

Business Insurance

Interest Payment

Principal Payment

Start-Up A business or venture in the earliest stages of set-up or operations.

Variable Costs

Working Capital Funding available in the business bank account once all start-up expenses have been paid.

Expenses

Cumulative Cash

Money which the business owner invests into the business. Typically these funds come from a variety of sources including, the owner’s personal savings and money gifted from family members. Personal loans and Lines of Credit do not apply because the money is owed to someone else.

Money the owner plans to withdraw from the business to cover their personal expenses. It's important that the owner takes into account what will be required each month to pay for personal expenses like: debt payments, housing costs and general living expenses. We also consider the contributions of spouses and part-time or other income.

Past Purchases or Historic Costs

Items or services already bought to start the business. These costs are listed separately from the start-up costs on the Futurpreneur cash-flow template.

Items and property that cannot immediately be converted into cash. Examples: buildings, furniture, equipment, machines and vehicles.

Regular expenses that have to be paid regardless of how busy or active the business is. Items like regular salaries, rent, insurance are all examples of fixed costs.

Many personal insurances policies offer limited or no protection for the businesses property or activities. Business insurance provides protection specific to the business property, activities and sometimes staff. Some businesses require other types of insurance too. Contact an insurance professional about what type and amount of insurance will be beneficial for your business.

As a borrower, an interest payment represents a fee you are charged for being lent money. The fee rate and payment schedule are determined at the time the money is lent and often described as an annual term rate. Paying only this does not reduce the amount of money you owe your lender.

A payment that reduces the amount of money you owe your lender. This is different than an interest payment because it reduces the amount of money you now owe.

Expenses which are not consistently the same each month. Fuel used by a courier company changes depending on the monthly activity and could be considered a variable cost.

Costs you incur while running the business over a fixed period of time. In the cash-flow, you'll consider expenses incurred on a monthly basis.

After you have paid all of your expected expenses and received all of your expected income in a given period of time, the money left over is your cumulative cash. Think of this as money left in your business bank account at the end of each month. The cumulative cash-flow on your Futurpreneur monthly cash-flow can never be negative. That would mean you have spent more money than you plan on having available at the end of the month.

Glossary - Business Terms and Definitions - Page 8

Cumulative Cash

Cash-Flow Projection

Capital Money you have available to make purchases to start and maintain your business.Assets Objects or items that can be converted (sold) into cash.

After you have paid all of your expected expenses and received all of your expected income in a given period of time, the money left over is your cumulative cash. Think of this as money left in your business bank account at the end of each month. The cumulative cash-flow on your Futurpreneur monthly cash-flow can never be negative. That would mean you have spent more money than you plan on having available at the end of the month.

A table that lists all of your expected costs and all of your expected income over a period of time. We request a 24-month cash-flow when applying to our Start-up Program. The first month shown should be the month the loan is put in your bank account.

Futurpreneur Canada - Financing Guidelines 9

Financing Guidelines

The most current financial details can be found at:

Financing Eligibility and Amounts

Financing and Repayment Terms

Our Loans Feature

Futurpreneur Canada and our partner, the Business Development Bank of Canada (BDC) are proud to support Canada’s young entrepreneurs with financing to launch your business.

http://www.futurpreneur.ca/en/programs/start-up/financing/

A new business or one that is in full-time operation for less than one year is eligible to apply for up to $45,000 of funding with a 5 year loan amortization under our standard program.

See our web site for additional eligibility criteria and for information about other programs we offer:

http://www.futurpreneur.ca/en/programs/

For businesses with applicant(s) between 18 – 34 years old who hold more than 50% business ownership May be eligible for up to $15,000 in funding from Futurpreneur Canada and up to $30,000 in funding from BDC.

Once you are approved for Futurpreneur Canada funding, you may also be eligible to receive additional financing – up to twice the initial Futurpreneur Canada loan offer – for increased financial support. This opportunity is made possible through Futurpreneur Canada's partnership with the Business Development Bank of Canada (BDC), and is only available through Futurpreneur Canada at the time of your Futurpreneur Canada application. Please see BDC Funding Loan Terms below for further detail.

For businesses with applicant(s) between 35 – 39 years old who hold at least 50% business ownership May be eligible for up to $45,000 from the BDC. This offer is available only through Futurpreneur Canada. Please see BDC Funding Loan Terms below for further detail.

Interest-only payments for the first year.Interest payments made monthly after the initial disbursement.Principal repayments made in equal monthly instalments together with interest, over the remaining four years.Free business mentorship for the first two years.

Futurpreneur Canada - Financing Guidelines 10

Futurpreneur Canada Funding Loan Terms

BDC Funding Loan Terms

No penalty for early re-payment and additional payments of Futurpreneur Canada funds.A $15 administration fee is charged monthly by Futurpreneur Canada for the duration of your loan, and this fee is added to your monthly repayment instalment.Futurpreneur Canada charges an initial set-up fee of $50, payable by cheque.

For all years, interest is charged at CIBC’s prime rate* + 3 %*Visit the CIBC’s website for the current prime rate.

Applicant(s) must show a minimum personal investment of 10% of all borrowed funds.Once approved, the BDC will issue an email outlining additional terms and conditions.The client may prepay all or any part of the outstanding principal, however, the BDC must receive the interest owing to the time of re-payment, together with an indemnity equal to three months’ interest on the principal amount prepaid.Once a year (non-cumulative) on the anniversary date of the loan authorization date, the client may repay 15 % of the principal outstanding without indemnity.The BDC charges a $50 processing fee, which is deducted from the initial loan disbursement. No other service fees are charged.

For all years, interest is charged at BDC Floating Base Rate* + 5 %*Please contact your local BDC office for the BDC Floating Base Rate.

Wishing you the best success with your venture.The Futurpreneur Canada Team

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