Now That you have the beginning of a timeline laid out, with some of your expenses, you’re going to want to know how you can expand on any of these line items. In other words, a single line to describe how you come up with the monthly figure may not be enough.
Using Google Sheets, you can lay out a model with all of the detail you need, to have a clear picture of the direction you’re headed in.
Take the computer Equipment. I put in a rough estimate of spending $10,000 on computer equipment in the first month of operation. It’s probably a good idea, to itemize the equipment – what you need, and how it adds up to the $10,000. This way it looks more, than just a guess. In fact, it could be based on very specific research, going on line, itemizing, and pricing out what you need.
In this video, I used the Software Developer cost line item as the example. If you need more than one developer, then you will definitely want to list out the different developers, and how much each of them needs to be paid. You might have a software engineer, and then some people who report to that person, at lower salaries.
What you’ll learn in this video, is how you can break out any line item, into as much detail as you need – line by line, and month by month. You can be very specific about line items that will impact your cash flow in a particular month.
With this phase of development, your business model will start to evolve into an incredibly useful tool. By this time, you should have plenty of ideas for how you can build out your own version.
Don’t forget, that you can get a copy of the Google Sheets template, by requesting it, using the Contact Seth form right here on the site.
Next let’s take a look at how to record your accounting transactions using Google Sheets.