Starting a business? Use a financial model to get you started

Posted by efinancialmodelers on May 26th, 2017

When you launch your business, you should expect it will not always be smooth sailing. However, if you have done your research diligently, you should have an easier time. You will reap the fruits of your research soon enough as you will be able to set a firm foundation for your business.  The due diligence you carry out prior to starting a business should be tailor-made to the business idea you have in mind and should result in developing financial projections in order to validate the financial feasibility of your business idea. Normally this is done with the help of an excel spreadsheet which is turned into a dynamic financial model.

The good news is that with the use of the internet it has become much easier to access know-how of existing business models and financial plans which have been proven to work before. Today, one can easily access financial plan templates of numerous businesses in different industries, which assist to properly think through the financial benefits of a planned investment in a Startup. Normally such a financial plan template have been developed by a professional financial modeller who has gone through similar exercises before. Using a well prepared financial plan sets you one foot ahead of running a successful business as you will think through very carefully how to drive revenues and how to mitigate the financial risk. Even if your business idea is new to the market, one solution is to use the help of a skilled financial modeller to develop a custom model that will be useful to you.

You will find these financial plans beneficial to you in so many ways. Most importantly, you will have gained a relevant blueprint that will allow you to use your available resources to the maximum advantage. You will not make unnecessary mistakes that will hinder your progress. Your business will face fewer challenges as you will know what to expect beforehand.

Save time

With the help of professional financial modeller you will save time. If you have a busy schedule, are less familiar with excel modelling or do not know where to start, this approach offers the best solution. Research requires time commitment to allow for thorough answers. Allowing someone else to do this research, frees up your time and let you benefit from an outside perspective based on good research. You will also save time implementing your business. You will have a clear plan of action that will set you in the right direction.

Lower costs

Practical financial modelling provided by an experienced financial modeller allows you to save costs, time and energy and can be done at quite affordable prices. You may even spend less on these than had you undertaken the task yourself. If you like to have a custom model built, you can find attractive bids that will provide you with access to professional services. This is more so if you use project websites that offer you this access. The idea here is to ensure you are dealing with a professional conversant with the industry.

Professional advice

Using a professional with practical financial modelling experiences offers the benefit that the model includes actual industry practices. You will therefore have maximum of information available which oyu need to set up your business. Having actual information is important as you will set up your business utilizing all the resources you need. You will also progress well when you know you have all possible tools that will make the business profitable.