Firstly, a word of warning: when you open this training budget, you’ll notice that the Summary sheet has been added to considerably. If you’ve not read the book, then some of the things you’ll find here probably won’t make sense. If you can’t afford the book, then go for the deliberately cheaper eBook, use a library, borrow a copy from a friend, club together with some like-minded individuals to share the cost, whatever you have to do to get your hands on a copy. Being poor sucks, I know, but you can make this work.
This spreadsheet now introduces the concepts of Production Breakeven and Company Breakeven in tangible form. Profit and Loss have been broken apart for spreadsheet reasons, and we also now show both Projected and Actual Return Per Unit here too. The Summary tab is still, then, the one-stop-shop for a basic overview of what’s going on.
The reason it’s laid out in this way is so that you can always see if you’re projecting a return for Unit Funders before you lock the budget and send it out to those who have expressed an interest in funding units. Once you’re in production, it also means that Unit Funders will be able to see in real time as you update the spreadsheet with incomes and expenditures exactly how much of their loan is coming back at any point under the Actuals column. Once you’re following the notes on the spreadsheet, you’ll see how their percentage return can be set, and then any further incomes directed towards the profit pot.
You’ll also see a new tab: Funding. Once you’ve understood the new Summary tab, pop across to the funding tab, and have a look at the way in which you can now keep track of who has funded what units, what value that represents, and how much of your production is funded at any one time. There are a few variables to play around with on this tab, so get some tea or coffee and some cookies and settle in. It may take you a while or you may grasp it quickly. Either way, please don’t skimp on your understanding of this training spreadsheet – it’s the most important one in the process, as it encapsulates the ways in which everything affects everything else.
On that basis, please don’t skip forward to Training Budget 5 until you fully understand Training Budget 4. You’ll just confuse yourself, Company Members and Unit Funders.
Enjoy wrestling with this one!