Financial Model

Financial models for new ideas or products need to be built differently from conventional ones.

 

Remember what you are presenting is a puzzle so you have to interweave all the different pieces together and show people how to see what you are seeing. Conventional financial models work well when you can clearly identify the assumptions, condense them into variables, put numbers to them and make appropriate forecasts. These numbers are driven by what you can observe in the marketplace or through your current operations.

 

However, for new ideas you have no idea what to expect so you have to build up to this and explain why. You have to identify these patterns beforehand and place the constraints appropriately based on assumptions that can be connected to the risk of going into a new business. Our financial models are dynamic and allow you to adjust the costs, revenue and profit based on real life conditions specific to your business on a periodic basis.