Build A Financial Forecasting Model for your next Startup
Build a Dynamic Financial Model to forecast Business Performance and Cashflow required for Startup or existing business
Build A Financial Forecasting Model for your next Startup udemy course free download
Build a Dynamic Financial Model to forecast Business Performance and Cashflow required for Startup or existing business
*** Now You can Create the exact same model with Google Sheets instead of Microsoft Excel ****
Forecasting Business performance for the next year or more is absolutely crucial for any startup or even for Existing Businesses.
Therefore, it is important to use robust tools to generate reliable forecasting for your business well ahead of time; this will surely prepare you for any uncertainties that may arise.
The best and easiest way to prepare a business performance forecast is to prepare a Financial Model in a familiar application called Microsoft Excel or Google Sheets!
While preparing Financial Models, people usually focus on KPIs like Sales, Sales Growth, Cost of Sales, Fixed overheads and Net Profit in creating their forecasting models, but the most important lifeblood for any startup or business is CASHFLOW.
There is no one better than you who can understand the value and importance of your business/idea/venture, so I believe you should be the one to predict the future of the business by preparing your own Forecast; my goal here is to empower non-finance business personnel with tools and techniques to get control of their business performance and outcomes! Therefore I have designed this course with easy to a follow approach where Non-Finance entrepreneurs and business owners can follow along and build up a financial model for their dream business ideas! (don worry if you get stuck. You can always reach out to me via the Q&A forum on this platform)
Welcome to the course: Build A Financial Forecasting Model for your next Startup
Financial modelling for any kind of business is a crucial task and is often considered a job only an Excel or Finance expert can do!
While I do not disagree with the above statement, even if you do not have any finance or accounting background or expert Excel/spreadsheet skills, you can easily learn them within a few hours, and you can still build a robust and reliable finance model for your own business within a few hours!
In this course, you will learn how to build a UNIQUE financial model from scratch; this course is specially designed for NON-FINANCE people/entrepreneurs.
This Financial Model allows forecasting two major components of Business which are key for success:
Income Statement
Cashflow performance and Funding required to keep business afloat
Income Statment Forecasting is key for your business success, with this Financial Model you will be able to forecast or model:
Sales and Revenue (with growth type: linear or selective), this is also perfect for any seasonal business model as well
Cost of goods sold and Gross Profit for each of your products (linear or selective)
Inventory balances (for trading business which has inventories)
Direct other costs (Eg customs duties, import duties, freight etc.)
Gross Profit (% GP)
Indirect overheads or semi-fixed overheads (Eg Property rentals, Salaries, Vehicle rentals, utilities etc.)
Net Profit (% NP)
The model is ideal for businesses where there are seasonal fluctuations in sales and sales growth; you can model each moths' revenue where there will be lower sales or vice versa.
Cashflow Forecasting is as important as Income Statment Forecasting. The business world is full of uncertainties, and even if your idea is a breakthrough, you might face temporary cash issues due to many reasons beyond your control. Therefore, using the proper Cashflow forecasting method is absolutely essential. Cash is king in any business, and it’s THE most important resource for any business to go on for a long time.
Guess What? This model lets you model key factors and indicators affecting cashflow as follows:
Amount and portion of Cash Sales in business, everyone prefers to sell their products or services on a Cash basis only, but for sustainable business growth, you will have to provide the optimum amount of credit to your major customers. The model allows you to set % of cash sales and credit sales, and you find at what level of % you will have maximum sales growth.
Cash collections from your customer – How much credit should you give to your customers for each of your products to ensure that you don’t run out of cash
Cash collection prediction becomes even more crucial when you have a seasonal business model; this model lets you predict and forecast your cash collections when your sales are really high or really low throughout the year.
Cash payments to your suppliers – suppliers are as important as customers; how you should negotiate with your suppliers to give you optimum credit (in days) to ensure the overall cash position of your business is always positive
In case you run out of cash for any reason, you can setup a revolving line of credit with your bankers to provide you with a temporary line of credit or bank overdraft; this model lets you forecast that as well, and you can clearly view how much temporary funding will be required in case business is not performing well in order to run the operations at the base level.
If you are borrowing temporarily, you must keep in mind the interest cost which you will incur; this model lets you forecast interest expenditure as well as how managing credit periods with your customers and suppliers reduces interest expenditure each month/year.
Having an optimum mix of Cash sales/purchase and Credit days (allowed and to get) could be the key to a successful startup or business venture; you can achieve the optimum mix required for your nature of business with this Financial Model easily and effectively.
This course covers:
The basics of Accounting and Finance (the accounting equation, Debits and Credits, what is balance sheet etc.)
Excel /Google Sheets formulas and functions to be used for building the ultimate Financial model
Advanced Financial Model building process (step-by-step, beginner-friendly)
Advanced Charting Techniques and Dynamic Dashboard building to supplement your Financial Model's KPIs in a visual manner
This model can be used to present your business plan in Infront of prospective Investors, venture capitalists, bankers to obtain the necessary funding to expand and grow your dream business
This model is an ideal tool for new businesses or startups, existing small to medium-sized businesses in many sectors and industries, for example:
FMCG – Fast-moving consumer goods like electronics goods (Trading)
Restaurant business
Consulting business
Online store/e-commerce business
Any seasonal businesses (where some months have more sales growth than others in a year)
Any other small to medium-sized businesses
As mentioned above, many numbers of scenarios can be modelled here, and you are not limited to worst, good and best scenarios only.
You can add more products and forecast each product’s performance either with linear growth (month-to-month fixed increase or in sales), or you can make more practical growth predictions with selective growth for each product month on month.
And if you are dealing with seasonal business, this model lets you forecast monthly sales quite accurately to manage the impact of seasonal sales (up and down)
Similar to sales growth, you can also predict gross profit and cost of goods sold for each of your products either with linear or selective growth % values.
So what are you waiting for? Start your journey of learning an awesome and powerful financial Model building! ENROL NOW
