Using the ‘Start With The End In Mind’ Feature in the Clear Path To Cash App

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What Is “Start With The End In Mind?” #

Overview of The Feature #

The ‘Start With The End In Mind’ feature in the Clear Path To Cash App helps business owners plan for their future exit by focusing on building transferable value. This feature guides you through setting financial and lifestyle goals, while monitoring your progress in building the value you need to achieve those goals. This guide will walk you through how to use the feature, track your progress, and input key financial data.

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Key Components of the Feature #

1. Two Charts for Tracking Your Plan and Progress
   • Plan to Build Transferable Value: This chart visualizes your goal to build value in your business, with the ultimate goal being the sale of your business. The sale of your business is considered the “last mile” toward achieving your financial and lifestyle objectives.
   • Progress on the Plan: This chart tracks your current progress, considering the amount you’ve already saved, the transferable value contributions you’ve made to date, the estimated current value of your company, and the remaining amount you need to achieve your goal.

1. Interactive Features
   • Add Transferable Value Contributions: You can add contributions toward your transferable value by clicking the Add TV button.
   • View Details: To see all contributions made to date, click the Show Details link. You can hide this table of details by clicking the Hide Details link.

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Create and Manage Multiple Scenarios #

This feature allows you to create multiple scenarios (or goals) and track the progress of each one at the same time. You can easily switch between scenarios, update them as needed, and delete old ones to keep your plan focused and relevant. Here’s how to use the scenario management functionality:

1. Add a New Scenario: Click the “+ Scenario” button and enter the name of your scenario along with the target date. This creates a new scenario record in your plan.
2. Select an Active Scenario: Use the dropdown menu of created scenarios to choose which one to actively work on.
3. Edit or Delete Scenarios: To update or remove a scenario, click the appropriate icon next to the scenario in the dropdown menu.

By managing multiple scenarios, you can compare various financial strategies and adjust your plan as your priorities or circumstances change.

Step-by-Step: Building Your Plan #

1. Enter Your Financial Goals The first section of the feature is designed to help you establish a clear financial strategy by entering the following:
   • Your Goal:
     • What do you want to achieve when you exit the business? This could include retiring, starting a new venture, or pursuing other life plans. You can set both short-term and long-term goals based on your priorities.
   • Desired Amount to Support Your Goal:
     • How much money will you need to achieve your goal? This could include paying off debt, funding retirement, or building financial security for future endeavors.
   • Duration for the Goal Amount:
     • Once you achieve your goal, how long will the money need to last?
       • Retirement: Spans multiple years.
       • Debt Payoff: May be completed in just one year or with a single payment.
         Enter this duration in years.
   • Timeframe to Reach Your Goal:
     • When do you plan to reach this goal?
       • Debt payoff: Could be in the near future.
       • Retirement: Could be several years away.
         Enter this timeframe in years. For less than one year, use decimals (e.g., 0.5 for six months).

1. Transferable Value Calculation Based on your inputs, the feature calculates the total transferable value goal you’re working towards:
   • Current Savings: Enter how much you currently have saved.
   • Remaining Goal: The app subtracts your savings from your desired total to calculate how much more needs to be saved.
   You will also see a pie chart that visually represents the saved amount versus the amount you still need to save.
2. Monthly and Annual Savings Targets After calculating the remaining goal, the app will determine how much you need to save on a monthly and yearly basis:
   • Monthly Savings Target: This number is rounded up to provide a simple, actionable figure for you to focus on every month.

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Calculating Your Current Business Value #

In order to fully utilize the top charts, you need to calculate the current value of your business:

• You will enter required financial data in the Simple Valuation Formula section.
• This data will generate the current value estimate of your company, which is automatically integrated into the progress chart.

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Conclusion #

By following these steps, the ‘Start With The End In Mind’ feature helps you stay focused on building the transferable value of your business and preparing for a smooth exit. With clear charts, savings targets, and real-time progress tracking, you can confidently plan your financial future while running your company.