Cash Flow & Working Capital
Working Capital Requirements (BFR)
Section titled “Working Capital Requirements (BFR)”Average inventory (15 days of revenue) €5,000+ Accounts receivable (30 days) €10,000- Accounts payable (30 days) -€3,000 ──────────Working capital requirement = €12,000Moderate working capital because:
- Private clients: payment on delivery or within 15 days
- Low inventory: order on demand (Rexel/Sonepar deliver within 24h)
- Suppliers: 30-day open account
Break-even Analysis
Section titled “Break-even Analysis”Annual fixed costs: €47,000 Vehicle + fuel: €10,800 Insurance: €4,500 Accountant: €3,000 Marketing: €3,600 Training: €2,000 Depreciation: €5,000 Minimum social contributions: €8,000 Telecom + miscellaneous: €10,100
Contribution margin ratio: 65%(Revenue - materials 30% - subcontracting 5%)
Break-even = €47,000 / 0.65 = €72,308 / year = €6,026 / month = ~2 installations / month at €3,000Cash Flow Plan (Year 1)
Section titled “Cash Flow Plan (Year 1)”| Q1 | Q2 | Q3 | Q4 | Total | |
|---|---|---|---|---|---|
| Cash inflows | €15,000 | €30,000 | €35,000 | €40,000 | €120,000 |
| Cash outflows | |||||
| Materials (30%) | €4,500 | €9,000 | €10,500 | €12,000 | €36,000 |
| Fixed costs | €8,000 | €8,000 | €8,000 | €8,000 | €32,000 |
| Social contributions | €0 | €2,000 | €2,500 | €3,500 | €8,000 |
| Loan repayment | €750 | €750 | €750 | €750 | €3,000 |
| Total outflows | €13,250 | €19,750 | €21,750 | €24,250 | €79,000 |
| Quarterly balance | +€1,750 | +€10,250 | +€13,250 | +€15,750 | +€41,000 |
| Cumulative balance | +€1,750 | +€12,000 | +€25,250 | +€41,000 |
3-Year Projection — Summary
Section titled “3-Year Projection — Summary”| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | €120,000 | €180,000 | €250,000 |
| Variable costs | €42,000 | €63,000 | €87,500 |
| Fixed costs | €33,600 | €38,000 | €45,000 |
| Social contributions | €8,000 | €22,000 | €30,000 |
| Pre-tax income | €36,400 | €57,000 | €87,500 |
| Income tax (QF 3 shares) | €2,000 | €6,000 | €14,000 |
| Net income | €34,400 | €51,000 | €73,500 |
| Employees | 0 | 1 technician | 1-2 |
| Maintenance contracts | 5 | 20 | 40 |