Financial Modeling Problem Definition

Posted on August 10, 2015 By

The first task in financial modeling is to define the problem or the solution that you need to propagate in your organization.  Without a defined question or stress test, financial models suffer from the wandering path.  Rather than searching for specific pattern or answer, they try to answer every single problem/issue that the business faces….


What is Financial Modeling?

Posted on June 24, 2015 By

Financial Modeling

What is financial modeling?  It’s creating a mathematical spreadsheet model that mirrors the business activity.  Why is it in a spreadsheet and not in a fancy online software program?  Each business is different and therefore needs a separate and unique financial model.  Generic budget software takes inflexible short cuts that can misrepresent the results. Financial…


SBA Loans

Posted on June 17, 2015 By

SBA Loans

SBA loan applications are a frequent target of business loans.  There are a few items that you will need to know about them.  SBA loans are generally backed by the government; however, the loans are subject to the same criteria as non-SBA loans.  Bank will generally grade a loan by the classic: Five C’s of…


Franchise Business Plans

Posted on June 15, 2015 By

LauraDodsonCPA Franchise Busienss Plans

Franchise Business plans are used for a variety of purposes. Convince the franchisor that you are up to the challenge Many franchises pick and choose between applicants.  The business plan quality is one of the sorting mechanisms.  A good quality plan will show that you have a capable team, understand how the business operates, and…


How to Create a Cash Flow Forecast

Posted on June 11, 2015 By

Cash Flow Forecast

A Cash Flow Forecast is a handy business tool that is rarely discussed.  What is it? It is a spreadsheet that quantifies the total money coming in and going out of your business.  It’s also the secret cash management tool for accountants. You say, “that’s what I have online banking for!  I don’t need this!”…


Common Business Plan Mistakes

Posted on June 5, 2015 By

Common Business Plan Mistakes

There are some common denominators to business plan snafus that are easy to commit.  Here are some reasons to have someone review the business plan before sending it out to third parties. Unrealistic Projections We all want our children to be successful, but projecting a 2.5 B revenue increase in one year is perhaps a…


Luck or Preparation?

Posted on May 26, 2015 By

Oprah Winfrey Quote

Is it lucky when a product or service goes viral?  Sometimes, it might be luck.  However, if you prepare, plan, and execute, it’s much more likely that any project, stretch or crowdfunding project will be more successful. Without effective planning; it’s much less likely to go viral.  The old school way of going viral was…


Tracking Down the Competition

Posted on May 22, 2015 By

Tracking Down the Competition

Competitive analysis is essential to a solid business plan. You need to know who and how you will be competing for revenue and market share with. To assume that the consumer has no alternatives to the company’s products is silly. What products are they using now in place your company’s services? How do you determine…


Dear Linkedin Connection

Posted on May 20, 2015 By

Dear Linkedin Connection, There is nothing that warms my heart than seeing that on an email. My heart always beats a little faster when I move things to my spam folder. Mail Merge, it’s so 90’s.   FacebookTwitterPinterestLiveJournalLinkedIn


What if the Numbers Don’t Add up?

Posted on May 18, 2015 By

What if the Numbers Dont Add Up

While presenting business plans, the financial statement information should have perfectly balanced books and tie out.  The first thing what people think when reviewing your masterpiece, is what other problems are there?  Is any of this information reliable?  Should I even bother asking them another clarifying question? Here are some common gaffes for financial statements…