Instructor PerspectiveThis meeting is taught from a CPA perspective. The instructor emphasizes credible assumptions, clear cost classification, conservative forecasting, tax awareness, documentation of sources, and numbers that a lender or investor can understand.Essential TerminologyStartup costFixed expenseVariable expenseDirect costIndirect costCost of goods soldGross marginContribution marginUnit economicsSales tax, payroll tax, income tax estimateBreak-even pointRevenue assumptionTimed Agenda — 120 Minutes0–10 min — CPA opening and continuity review: Review Week 1 business model and Week 2 market, competitor, sales-channel, and staffing assumptions. Identify where financial estimates must connect to prior plan sections.10–25 min — Mini-lesson: cost categories: Define startup, fixed, variable, direct, and indirect costs using examples from service, retail, food, trades, consulting, and online businesses.25–40 min — Collaborative cost-sorting activity: In pairs, learners sort a mixed list of expenses into cost categories, then discuss gray areas such as owner draw, marketing, software subscriptions, deposits, insurance, and training.40–55 min — Guided business-plan development: startup budget draft: Learners begin a startup-cost table with item, category, estimated amount, timing, source of estimate, and confidence level.55–70 min — Mini-lesson: pricing and unit economics: Explain price, unit cost, gross margin, contribution margin, and how competitor research and customer value influence pricing decisions.70–85 min — Professional examples and case studies: Compare three short cases: a mobile detailing business underestimating supplies and travel time; a boutique retailer overlooking shrinkage and card fees; and a consultant pricing only by hours while ignoring unpaid administrative time.85–100 min — Guided calculation lab: Learners calculate contribution margin and a first-pass break-even point using a simple worksheet or paper template. Instructor circulates to check formulas and assumptions.100–110 min — Taxes and compliance cost check: Discuss common tax and fee categories to verify, including sales tax, payroll-related costs, income-tax planning, licenses, permits, bookkeeping, insurance, and professional advice. Emphasize that the session provides planning education, not individualized tax advice.110–117 min — Formative assessment: Learners complete a quick math and classification check: identify one fixed cost, one variable cost, one startup cost, one assumption needing verification, and calculate break-even units from a sample scenario.117–120 min — Assignment preparation and handoff notes: Explain how today’s work feeds the Week 3 Assignment Workspace and the next CPA meeting on forecasts, cash flow, controls, and financial risks.Collaborative or Role-Playing ActivityCost-sorting pairs act as a business owner and CPA advisor. The owner explains why an expense was classified a certain way; the CPA advisor asks clarifying questions about timing, volume sensitivity, documentation, and whether the cost should appear in startup budget, monthly expenses, or cost of goods sold.Professional Examples and Case StudiesService business: A cleaning company prices jobs by square footage but omits travel time, supplies, insurance, and cancellation risk.Retail business: A specialty shop sets a strong markup but fails to budget for freight, payment processing, damaged inventory, and seasonal slowdowns.Food or product business: A startup estimates ingredient cost but overlooks packaging, waste, licensing, kitchen rental, and sales tax handling.Professional services: A consultant bills hourly but does not account for unpaid proposal writing, bookkeeping, client communication, and continuing education.Guided Business-Plan DevelopmentLearners update the financial feasibility section of the same business plan developed in Weeks 1 and 2. They add a startup-budget draft, monthly fixed-cost list, variable-cost assumptions, initial pricing model, source notes, and break-even calculation. They also flag assumptions that must be revised before the lender-readiness week.Instructor Notes Based on CPA ExpertisePress learners to separate one-time startup costs from recurring expenses.Ask for the source of each estimate and the date it was obtained.Encourage conservative sales assumptions and realistic ramp-up periods.Remind learners that owner draw is not the same as business profit.Identify expenses commonly omitted by new owners: insurance, licenses, payroll burden, merchant fees, software, repairs, returns, shrinkage, professional services, and taxes.Document concerns that the bank officer should revisit, especially weak margins, unsupported sales assumptions, high debt need, or unclear owner investment.Formative AssessmentDuring the final quick check, learners submit or display one classified cost list, one pricing assumption, one source note, and one break-even calculation. The instructor reviews for reasonable classification, mathematical accuracy, and alignment with the learner’s business model.Preparation for Linked AssignmentThis meeting prepares learners for the Week 3 Assignment Workspace: Startup Budget and Pricing Checkpoint. Learners should leave with enough draft data to complete startup costs, fixed and variable expenses, pricing assumptions, unit economics, tax considerations, and break-even inputs before the next meeting.Beginner SupportProvide a simplified paper worksheet, sample cost categories, calculator-friendly formulas, and worked examples. Encourage learners without exact quotes to use clearly labeled estimates and list what they still need to verify.Advanced ExtensionAdvanced learners create best-case, base-case, and worst-case sales assumptions; compare multiple pricing models; estimate gross margin by product or service line; and identify which cost drivers most affect break-even timing.

Instructor PerspectiveCPA perspective: translate business assumptions into credible numbers, identify financial weak points before a lender sees them, and help learners build simple financial habits they can maintain.Essential TerminologyProfit and loss statementCash-flow projectionBalance sheetAccounts receivable and accounts payableOwner drawWorking capitalInternal controlsBookkeeping cycleGross marginKey performance indicatorTimed Agenda – 120 Minutes0-10 min: CPA opening and continuity check. Review how Week 1 viability assumptions and Week 2 marketing/staffing assumptions affect the financial model. Learners identify one assumption they are least confident about.10-25 min: Mini-lesson on financial statements. Explain the role of profit-and-loss, cash-flow, and balance-sheet views using a small service business example and a small product-based business example.25-45 min: Guided forecast build. Learners draft monthly revenue, cost of goods or direct costs, operating expenses, payroll or contractor costs, taxes, loan payments if applicable, and owner compensation assumptions.45-60 min: Professional case study. Compare two businesses with similar annual profit but different cash timing. Discuss why profitable businesses can still run out of cash.60-75 min: Collaborative cash-flow scenario activity. In pairs or breakout rooms, learners role-play owner and CPA. The CPA questions slow-paying customers, seasonal demand, inventory purchases, hiring timing, tax payments, and emergency reserves. Each pair recommends two cash-flow protections.75-90 min: Internal controls and bookkeeping practices. Demonstrate simple controls: separate business bank account, receipt capture, invoice tracking, approval limits, bank reconciliation, sales tax tracking, payroll records, and review of monthly reports.90-105 min: Risk and KPI workshop. Learners identify three financial risks, three monitoring indicators, and one monthly review habit. Examples include gross margin, cash on hand, sales conversion, customer acquisition cost, average transaction size, payroll percentage, and accounts receivable aging.105-115 min: Formative assessment and CPA feedback notes. Learners submit or share one forecast assumption, one cash-flow risk, and one control practice. Instructor checks for realism and documents lender-relevant concerns for Week 4.115-120 min: Assignment preparation. Confirm Week 3 assignment deliverables: startup budget, pricing model, break-even estimate, 12-month revenue and expense forecast, basic cash-flow projection, risks, and KPIs.Professional Examples and Case StudiesService business example: A consulting startup with low startup cost but uneven invoice collections must plan for delayed receivables and owner draw timing.Retail or food example: A product-based business with inventory purchases, card-processing fees, spoilage or shrinkage, and seasonal demand must protect cash before sales occur.Employer example: A business that hires too early improves service capacity but creates payroll pressure before revenue stabilizes.Guided Business-Plan DevelopmentLearners update the financial feasibility section of the same business plan developed in Weeks 1 and 2. They connect target-customer assumptions, marketing channels, staffing plans, and pricing decisions to monthly forecast lines and cash-flow timing.Instructor Notes for CPAEmphasize usefulness over complexity. Learners do not need advanced accounting knowledge to create responsible projections.Challenge unsupported optimism by asking for evidence: customer volume, pricing basis, seasonality, capacity, and cost estimates.Flag issues for the bank officer: weak owner contribution, large early cash deficits, unrealistic sales ramp, missing taxes, unclear debt repayment capacity, or no bookkeeping routine.Avoid repeating Week 2 marketing strategy; focus only on how marketing assumptions affect revenue, expense, and cash timing.Formative AssessmentInstructor reviews a quick projection checkpoint: one monthly revenue assumption, one monthly expense assumption, one cash-flow risk, one internal control, and one KPI. Feedback is corrective and practical rather than graded during the meeting.Beginner SupportProvide a plain-language glossary and a sample one-page forecast.Allow calculator-supported paper tables instead of spreadsheet formulas.Use round numbers first, then refine assumptions.Advanced ExtensionAdd conservative, expected, and optimistic revenue scenarios.Estimate debt-service coverage using projected cash available for repayment.Track margins by product, service line, or customer segment.