Sunday, May 15, 2016

Business plan - the first 5 years

I'm refining my business plan in preparation for my next meeting. It's already up to 11 pages! However, since I am having it reviewed by German speaking people who might award me with start-up money, I decided to write in their native language instead of mine.

Unfortunately, this means that it takes me about 3x as long to write it, and therefore contains a suspiciously high number of bullet lists instead of full sentences. :-D

Part of your business plan is to draw up a 5 year plan for finances. I put this off for quite some time since my least favorite part of this idea is working with the numbers. However, since I used to be a programmer (albeit not a very good one), I was able to transform this clear and concise tax table:


into this unreadable Excel formula:

=IF(SUM($G24:$R24)>90000,(((SUM($G24:$R24)-90000)*455000/910000)+32880)/4,IF(SUM($G24:$R24)>60000,(((SUM($G24:$R24)-60000)*14400)/30000+18480)/4,IF(SUM($G24:$R24)>31000,(((SUM($G24:$R24)-31000)*12180)/29000+6300)/4,IF(SUM($G24:$R24)>18000,(((SUM($G24:$R24)-18000)*4550)/13000+1750)/4,IF(SUM($G24:$R24)>11000,(((SUM($G24:$R24)-11000)*1750)/7000)/4,0)))))

where cell G24 is Jan theoretical taxable income and cell R24 is Dec theoretical taxable income.

For the eagle-eyed out there, you'll notice I left off the tax for taxable income over 1 million dollars. I'm only describing the first 5 years after all. :-D



2 comments:

  1. Hi, your posts made me laugh so hard. Good luck with the project.

    Abbey Sews

    ReplyDelete
    Replies
    1. Thanks! It's nice to know that there is at least one person who reads this blog :-D

      Delete