The “Investments” tab in Business Model Forecast is where you specify the investments you forecast. Investments should also include one-time or occasional expenses (common expenses should be detailed in the “Expenses” tab). One line is for one kind of investment.
There are here only 2 different kinds of information to complete in this tab :
- Description : Fill-in a short description of the investments.
- Cost amount : Fill-in here amounts of investments you forecast. You can specifiy either a single amount (one-time investment/payment) or multiple amounts, depending on how many same investments you forecast over the years for the same kind of investment.
Notice that you don’t have to specify any amortization information for these investments. Business Model Forecast automatically calculate the amortization in the Profit & Loss statement based on a default 5 years duration. This is a choice we made when designing this financial tool, to keep it simple and still relevant (5 years is a quite common duration for amortization), because this is an information quite difficult to specify for entrepreneurs, especially with multiple kind of investments.
Let’s have a look to the picture example above to better understand how to complete this investments tab. As you see, this is pretty simple. We completed the tab to add 2 kind of investments “Huge investment” and “Another investment”. For the first type of investment, we specified a one-time amount of 300.000$ in the 2nd quarter of the 1st year, whereas for the second we filled-in multiple amounts (20.000$, 40.000$ and 60.000$).