1. How are revenues growing? Which clients are most important?

2. What is the biggest factor in the cost of goods sold? Do you think that this is realistic? Why or why not?

3. Do any part of the financial statements seem unrealistic to you? Explain.

Case Gravyty: Understanding Your Market and Building Realistic Proformas Basis of Presentations This plan contains 18 months of projections. While we believe that the assumptions underlying the projections are reasonable, there can be no assurance that these results can be realized, the nature of the underlying assumption will stay the same, or that actual results will meet expectations. Top-Down vs. Bottom-Up Financials Gravyty believes that "bottom-up" financial analysis is the best approach to business planning. This is in contrast to "top-down" analysis, which states the percentage of a given total addressable market (TAM) an entrepreneur thinks can be captured. Bottom up financials allow us to think client-by-client, month-by-month about the strategies and personnel necessary to build the business. Nonprofits in the United States are required to file a Form 990 with the Internal Revenue Service (IRS) in order to maintain their status. Within the Form 990, is a National Taxonomy of Exempt Entities (NTEE) code, which is used by the IRS to classify these organizations into 24 different groups. Management has chosen to focus initially on those segments in the chart below for their bottom up approach based on size of the market, access to early adopters, and the initial perceived need based on the value proposition. Number of Organizations Filing Form 990 Philanthropy, Voluntarism & Grantmaking Foundations Education Recreation & Sports Community Improvement & Capacity Building Human Services Arts, Culture & Humanities Religion-Related Health Care # of NPOs 89,194 80,065 49,765 49,132 46,843 45,409 30,554 27,422 Estimated Organizations 50% 40% Small 44,597 40,033 24,883 24,566 23,422 22,705 15,277 13,711 Medium 35,678 32,026 19,906 19,653 18,737 18,164 12,222 10,969 Distributed 10% Based on Average Large Technology Spend Technology Spend 8,919 $10,207,628,942 $ 8,676,484,600.70 8,007 $ 9,162,878,795 $ 7,788,446,976 5,695,255,895 $ 5,622,813,476 $ 5,360,853,449 $ 5,196,742,187 $ 4,840,967,511 4,779,391,455 4,556,725,432 4,417,230,859 3,496,691,422 $ 2,972,187,709 2,742 $ 3,138,255,946 $ 2,667,517,554 4,977 $ 4,913 $ 4,684 $ 4,541 $ 3,055 $