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The eight assumptions are:
Additional Questions:
How often can I change values of these 8 assumptions in the QuickStartMode?
You may make changes to these 8 assumptions as many times as you like. After making each set of changes, you can examine the financial statements and see how your company will do.
How can Offtoa create all my financial from just eight assumptions?
Offtoa makes many additional assumptions based on your selection of industry. As a result, your financials will end up looking like an “average company.” In reality, no startup looks like an average company though! QuickStart is designed to do just that; it gives you an ability to get off to a quick start, and that's all. We highly suggest that after using QuickStart, you switch to the Standard Mode to enter more accurate values for all your assumptions. That way you can see what the financial statements for your company would really look like.
How much analysis of my company will Offtoa do when I select the QuickStart Mode?
In the Standard Mode, Offtoa looks for and reports to you roughly 100 different conditions that you should know about. For each, Offtoa also tells you which assumptions you can change to “fix” the problem. Because QuickStart Mode has just 8 assumptions, Offtoa is in effect making the rest of the assumptions for you . . . and making those assumptions to produce acceptable financial results. As a result, when using QuickStart you will see only about a dozen or so conditions that Offtoa will report to you.
Why would I use QuickStart Mode?
The only reason to use QuickStart is to get instant feedback on your business concept. It is like a back-of-the-envelope calculation. It is like the feedback you get when you stop an experienced colleague in the hallway and ask, “what do you think of this new business idea?” but the analysis that Offtoa does is all about the financials.
Why do I have no marketing and sales expenses when I use QuickStart Mode?
QuickStart allows you to enter 8 assumptions, and then makes very broad assumptions about every other aspect of your company. Concerning expenses, if the average company in your industry spends x% of its revenues on expenses, Offtoa assumes that you will spend x% of your revenues on expenses. You can of course override the value of x by changing the value of EBITDA in your assumptions. In any case, Offtoa makes no attempt to divide these expenses into categories such as marketing, sales, R&D, manufacturing, and so on. If you want to do this, switch to Standard Mode after using QuickStart Mode. Click on Other Expenses. There you will find one entry for miscellaneous expenses that was created by the QuickStart Mode. Feel free to zero this row out, and replace it with rows for actual expense categories.
What are the differences in available assumptions with QuickStart Mode vs. Standard Mode?
QuickStart Mode | Standard Mode |
|
Number of Products | 1 | Unlimited |
Number of Markets | 1 | Unlimited |
Sales Techniques Available | 1 | 7 |
Cost of Goods Sold | Industry Average | Fully Customizable |
Personnel/Staffing Salaries | No | Yes |
Commissions | No | Yes |
Expenses | Industry Average | Fully Customizable |
Fixed Assets | No | Yes |
Investments | No | Yes |
Loans | No | Yes |
What are the differences in reports available when using QuickStart Mode vs. Standard Mode?
QuickStart Mode | Standard Mode | |
“Investor Hat” Analysis by Offtoa | Limited | Complete |
Financial Reports | Complete | Complete |
Company Valuation | Complete | Complete |
Investor IRR | No | Yes |
Financial Graphs/Charts | Complete | Complete |