30.0 -280.0 -280.0 -320.0 -128.0 Figure 13-10: A 6-Month Initial Cash Flow Projection for a Start-up WISP Venture spending, direct and indirect expenses and revenues. These should be made on a monthly basis for the start-up period of one to two years and then on a yearly basis. An example start-up cash flow projection is shown in Figure 13-10. Generating multiple scenarios based on alternative uptake rates and pricing policies will illustrate the range of potential cash flow outcomes and help to assess how exposed the venture is to risk. Cash flows can be used to identify the total funding required until the venture starts to be positive cash generating. Cash flows can then be turned into income projections (profit & loss statements) and various break-even and profitability analyses can be performed (Figure 13-11). Again, multiple scenarios on customer uptake, pricing, future market development and other variables can be played out to give stakeholders an idea of the robustness of the proposed venture. Spreadsheets are an ideal tool for conducting this analysis, although custom made financial and general business planning software is also available that can guide the financial planning process. Start-up Phase Some of the key considerations that will require attention in the start-up phase are covered in this section. Chapter Thirteen 15000 Monthly cash flow 12500 Cumulative cash flow Breakeven from 10000 operating month 9 Cashflow positive from operating month 6 Maximum cash deficit in operating month 5 -2500 MJJASONDJFMAMJJASOND Figure 13-11: A Graphical Break-even Analysis Chart Base Station Deployment Tower leasing - Where existing towers are the preferred option, contracts will have to be negotiated to acquire space to locate BS antennas. Sample tower leasing agreements can be found on the Internet, although it is recommended to take legal advice to ensure that agreements comply with local laws. New tower deployment - When selecting a tower design, current needs and requirements for future expansion should be