Business planning. The main stages of developing a financial model (budgets) of a business plan. Preparation of the necessary initial information for developing a financial model (most important)

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Business planning. The main stages of developing a financial model (budgets) of a business plan. Preparation of the necessary initial information for developing a financial model (most important)

Lecture notes, cheat sheets

Directory / Lecture notes, cheat sheets

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27. MAIN STAGES OF DEVELOPMENT OF THE FINANCIAL MODEL (BUDGETS) OF THE BUSINESS PLAN. PREPARATION OF NECESSARY INITIAL INFORMATION FOR THE DEVELOPMENT OF A FINANCIAL MODEL

Financial model - this:

1) model of financial flows and economic indicators of the modeled object;

2) a mechanism that allows you to calculate the necessary financial and economic indicators based on the initial parameters.

When developing a financial model for a business plan, it is necessary to clearly structure all available project data. Any business plan should include a financial model that calculates future cash flows generated by the business 3-5 years ahead, based on current growth rates.

When modeling a business plan budget, there are three main steps:

1. Analysis of primary information on the current development of the company, strategic plan and marketing analysis of the market, on the basis of which financial flows will be modeled.

2. Creation of a set of forecasts of financial statements (profit and loss statement, balance sheet, cash flow statement in accordance with IFRS) for the next five years (at least two years with a step of one month, and subsequent - by years), which will reflect results of the implementation of the strategic plan.

3. Analysis of risk factors and a risk reduction strategy, taking into account which three financial models of the business plan are built: pessimistic (maximum risks and their consequences on the company's flows are taken into account); - optimistic (the company will develop in accordance with the planned pace, without risks); - conservative (the most probable outcome of the company's development).

The process of building an enterprise activity model the most time-consuming, requiring preparatory work on the collection and analysis of initial data. Information is collected according to information blocks:

1. Products and services. 2. Industry. 3. Competitiveness. 4. Operations. 5. Financial position of the company. 6. Strategic plan.

Products and services. In this section it is necessary to systematize the entire product line offered by the company. For each unit of the product line, the cost of production and the estimated sales volume should be specified.

Branch. In the financial model, close attention must be paid to the analysis of the industry in which the enterprise operates, sales markets and the level of competition. This is the most important information on the basis of which it is necessary to conclude whether the company can successfully realize its opportunities in the market. When analyzing the industry in which a company operates, it is necessary to pay attention to trends that may affect the promotion of goods/services in the market.

It is also necessary to submit analysis of the influence of the main forces on the industryinfluencing the state of competition: the ability of suppliers to negatively influence delivery conditions; - the ability of buyers to negatively influence the conditions for purchasing products and/or services; - the possibility of the emergence of substitute products; and so on.

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