Devising a Budget and a Predictive Break-Even Analysis

Break-even-level is a pivotal milestone for early startups, it is the point where the generated revenues from the startup activity are able to cover its operating expenses. 

But more than a single point that can turn you from loss generating into profit making, the break-even analysis gives details of your business model and strategy. It combines sales forecasts including estimations of market size and share acquisition, with cost assumptions and many more.

Estimating precisely when and under what assumptions you will be able to achieve the break-even level is paramount for the survival of your startup and for the fundraising process.

This service is designed to provide detailed analysis of the startup monthly break-even levels and help you nail the assumptions and strategy to reach this point. The service comes with an excel based financial model tailored for your Project and including at least:

• Revenue forecast for the next 36 months in terms of volume and value taking into consideration market size, target market share acquisition and pricing strategy;
• Fixed costs monthly forecast defining and analysing the costs incurred regardless of sales activity;
• Variable costs forecast analysing the expenses that are incurred with each sale including cost of sales estimation.
• CAPEX costs including software and hardware costs, furniture costs etc.;
• Base case scenario including break-even monthly sales in terms of volume and value;

You will work together with the mentor combining live sessions and analytical part (questionnaires and excel forecasts and assumptions) and at the end of the process you will at least be able to:

• Know your minimum monthly revenue targets, measure profit and loss at different sales levels and estimate if and when it is realistic to achieve them;
• Make a specific plan how to reach your break-even sales;
• Estimate how much funding you need to cover your investment and operating costs until break-even;
• Understand your structure of expenses, realize the importance of keeping your fixed costs low and see the effect of cost efficiency;
• Build a cushion and receive advise on what else to expect.
• Get an automated tool tailored to your Project and business model that can be used to examine the effect of change in assumptions and different strategies. It is flexible and easy to update, so that can easily see the financial impact.

Break-even analysis is a powerful tool to validate your Idea and estimate your desired profitability. We will give you the understanding and an instrument tailored to your Project that shows when and under your assumptions you will become profitable and that will be the basis of your detailed financial model and fundraising strategy.

How long does it take to complete the service?

Within four to six weeks

How many hours does the mentor work in total? How many hours does the mentor work directly and personally with the startup? 

At least 15 hours, which include 5 hours set into three working sessions with the startup to understand the Idea and business model, discuss the assumptions and have a final wrap up. Apart from the meetings, our mentor will spend at least 10 additional hours to prepare questionnaire and excel templates tailored to your revenue and cost structure, review the input assumptions, analyse the results and make recommendations. The hours are allocated as follows:

Revenue forecast- min 6 hours

Expenses forecast- min 3 hours

CAPEX forecast- min 3 hours

Break-even analysis- min 3 hours

• Consulting on which external funding options are suitable for your startup based on the industry you operate in, your stage of development, and financial status 150.00 лв. – 450.00 лв.
• Action Plan for Y1 Devising & Completion 150.00 лв. – 800.00 лв.
• Information on available external funding options in Bulgaria 300.00 лв. – 450.00 лв.
• Information on available external funding options outside Bulgaria 195.00 лв.
• Pitch Deck for Investors 30.00 лв. – 800.00 лв.
• Completing all documents necessary in the process of applying for external funding