Business Case

A financial modelling process to validate the assumptions and risk assessment of different roll-out scenarios.

Financial Forecast

The business case is a detailed financial modeling exercise that begins by preparing a traditional financial forecast for the existing businesses profit and loss for the next ten years. This will be a conservative growth model, to provide certainty to any stakeholders that the business has scale and longevity.

For three of the key growth opportunities identified in the Market Scan, a financial model will be built as a scenario tool. The difference between this approach and traditional spreadsheets is that all the input options are in an input sheet, so that you can manipulate the scenario inputs to drive alternative scenario outcomes. This approach allows the model users to identify the impact of the offers, incomestreams and market selection with ease.

One of the key parts of the Business Case process is to find supporting data and reference cases to validate the key demand assumptions. We have twenty-five years’ experience in predicting unknown futures for decision-makers to have comfort in making informed capital allocation decisions.

The assimilation of the multiple input sheets delivers a group view of the Profit & Loss forecast on a monthly and yearly basis, along with a cashflow forecast calculating the level of financial investment required to fund the growth.

Business Model Selection

There is more than one way to make money out of your business.

Income Streams – Alternative ways of charging for your offer, identifying which will be most compelling to your target market but also the most lucrative.

Commercial Terms –  Outside of the income streams there are also payment terms that can significantly change your working capital model.

Operating Model –  There are a number of alternative ways to transact with channel partners, from arm’s length transactions through to acquisition and ownership.

Funding Model – Considering alternative sources of finance that may shape your ability to grow at the right pace to suit the opportunity.

Risk Analysis

Most financial models prepared by advisors are linear in nature – they have a fixed set of assumptions that create forecasted financial metrics. However, they neglect the ability to model a range of potential outcomes that may occur.

A Sensitivity Analysis takes into consideration a range of variables and how they may influence different aspects of a business. This allows for a greater level of confidence in forecasts and a breakdown of the most influential factors in a business’s future.

This approach will clearly define the critical success factors that will create the conditions for success and the Lead Indicators that the Management Team should be measuring on a day-to-day basis.

How the business case will add-value to your business

Our Business Case product will help make sense of the numbers

Innovative Strategies – you will have considered widely the strategic options open to you and have identified a unique place to play. You’re not implementing hobby horses.

Robust Commercialisation – have a well thought out strategy and business model to ensure financial success. Not winging it or trusting your gut.

Alignment – have fast and aligned decision-making. Not spinning wheels or procrastinating on moving forward.

Value for Money – this is a highimpact, low-cost method to get the clarity and confidence on the way forward so you can move into action.

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