10 Tips to Develop a First Class Business Valuation Report

A valuation report is a financial report determining the current (or projected) value of a business or asset (property, marketable securities, etc.) using the financial statements, assumptions, and various methods and approaches. It simply communicates how to value a business. A business valuation report is not solely for business owners, investors, and potential buyers. A…

Continue reading →

IRR vs ROI Analysis – Which one should you choose when?

Evaluating new investment projects in business requires a solid analysis in order to create a basis for financial decision making. Especially in Financial Planning/Budgeting in business one has to decide on which financial return metrics to rely on. The implications of selecting and relying on the best return metric are crucial in business since a…

Continue reading →

How simple Payback Analysis can improve the quality of your financial decision-making

What is Payback Period? The concept of the payback period is clear for capital budgeting purposes. The payback period reflects the amount of years it takes to repay a capital project’s initial investment from the cash flows generated by the project. The payback period method in capital budgeting is the selection criterion, or the key…

Continue reading →

Building a Financial Model for a Food Truck Business Model

Creating a Business Plan for your Food Truck Business

You are a self-proclaimed foodie, your Instagram feed is filled with gastronomic adventures (and mishaps), and you’ve seen all episodes of the popular US Food Network’s TV Series “The Great Food Truck Race”. You dream of one day wowing every tummy with your beloved Grandma’s barbeque. People would wait in line for an hour to…

Continue reading →

Financial Planning for Small Business Owners - Taking an SBA Loan

Financial Planning for Small Business Owners – Taking an SBA Loan

“Money does not dictate your lifestyle, it’s what you do to get it and how you manage your finances that determines your lifestyle.”  ― Wayne Chirisa Whether small and mid-size businesses, they are actually what mostly consist of a striving economy. It is no question that entrepreneurship and creativity have been the biggest factors that brought…

Continue reading →

Startup Business Model - Financial Modeling for Startups and Small Businesses

Financial Modeling for Startups and Small Businesses

Ensuring to have a healthy business is to have a working financial plan that will help with managing the business to make the right strategic financial decisions. Especially for startup businesses, creating a financial plan is a critical factor for the business’ survival against countless competitors and other risks that one might encounter especially for…

Continue reading →

Capitalization Table Example

How to Build a Capitalization Table

A capitalization table or also known and often abbreviated as the cap table is a table or ledger providing an analysis of a company’s or organizations’ percentages of ownership, equity dilution, and value of equity in each round of investment by the founders, investors, and other owners or shareholders. Basically, it helps keep track of…

Continue reading →

Financial Statements Spreadsheet

Financial Modeling using Excel

What is a financial model? What is the difference between a financial model and the spreadsheet solutions you create to answer financial questions or solve financial problems? Financial models forecast an asset’s or a business’s future financial performance based on a set of assumptions and rules that define their relationships. As a result, financial models…

Continue reading →

Valuation - DCF Modeling

Valuation of a Company – Common Valuation Approaches

Valuation of a company is associated with a lot of difficulties and insecurities. It is impossible to estimate the object value of a company only by counting since the numbers are not the only factor to consider. To facilitate the business valuation process there are a number of helpful models. According to theory, the business…

Continue reading →


Building a Monthly Budget – Using Monthly Budget Templates

A budget is defined as a plan that represents how much money an entity will potentially earn and how much they will need or be able to spend. Basically, a budget’s main objective is to provide a concrete and measurable estimate of the receipt and allocation of resources such as cash. There are several types…

Continue reading →

Business Valuation Picture

Valuation in Business

Simply defined, a business valuation is an examination conducted towards rendering an estimate or opinion as to the fair market value of a business interest at a given point in time. Generally, when valuing a business, a notional transaction is assumed, that is, one that has not been subjected to the bargaining process. Like accounting,…

Continue reading →

Business Planning - Choosing which Business Model

Business Plan Models – Using Business Models as Examples

No matter what size, big or small, your business is, creating a business plan is very important. The business plan will serve as a guide that outlines your goals and all the details regarding how you can reach such goals. But planning is just wishful thinking if there’s no proper execution and a solid business…

Continue reading →

The Significance of a Financial Analysis Excel Template

What is Financial Analysis? Financial analysis is defined as an assessment of the viability, stability, and profitability of a business, sub-business or a project (Source: Wikipedia). Financial analysis is used by decision-makers to assess the economic and financial situation of business, projects, budgets, and other finance-related entities. Financial analysis mostly relies on analyzing and interpreting…

Continue reading →

Financial Statements Spreadsheet

Financial Statements – Definition, Uses, Contents and Templates

Financial statement analysis is a very important skill in a variety of occupations such as investment management, corporate finance, commercial lending, financial modeling, and other careers related to finance. Producing a standard spreadsheet on a company is a means rather than an end. In other words, genuinely valuable analysis begins only after all the usual…

Continue reading →

Project Finance - Infrastructure

All About Financial Modeling for Project Finance

Project finance enables shareholders to raise finance for a project without the lenders claiming their other assets or known as non-recourse financing.  As the financing is standalone, project finance only fits for investments that generate expected cash flows. Most of the risks are given to the operating vehicle or SPV (Special Purpose Vehicle). These project…

Continue reading →

Building a Financial Plan - Investing or Saving

Startup Models – Startup Financial Plans & Model Templates in Excel

Creating a Startup Financial Plan To make sure that you have a healthy business, the need to have a working financial plan is adamant. Just by having a financial plan for a business, it will help with managing the business and also make the right strategic financial decisions. Creating a financial plan is a critical…

Continue reading →