Financial Modeling


Do Zero Based Budgets on Focus on Short Term Goals?

Zero based budgets can be a great way to beat the sawdust out of a budget.  The principles of zero based budgeting are pretty simple.  Each year or month that you prepare a budget, start with zero information.  Starting with zero information, instead of using comparables from previous months or years, forces the preparer to…


Specific Goals!

When I meet with someone for the first time about their business, I ask, what is their goal?  Usually the answer is a smattering of life/work balance/ successful business/adequate funding.  However, that is not very specific. In the past week I’ve talked to several people.  I’ve asked them all ‘how many hours they wanted to…


Future Capacity Building Planning

Rethinking the box we find ourselves in day and day out can be difficult.  Even exceptionally smart folks find themselves in a box.  Ask them how they are doing, and it couldn’t be better.  They actually enjoy working on moribund products, outdated computer systems, and making buggy whips. An example is the world wide switching…


Critical Path Management (CPM)

What is Critical Path Management (CPM)?  It’s an essential part of determining a project management timeline.  It was originally developed in the 1940’s and was implemented developed by the Manhatten project, Dupont and other large corporations. The mathmatical equations have changed since it was created, however, the thought process and logic are essential. A simple…


What is 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…