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…

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Creating a Business Plan for your Food Truck Business

Building a Financial Model for a Food Truck Business Model

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…

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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…

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Financial Modeling for Startups and Small Businesses

Startup Business Model - 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…

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How to Build a Capitalization Table

Capitalization Table Example

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…

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Financial Modeling using Excel

Financial Statements Spreadsheet

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? A simple, practical answer is that a financial model is designed to represent in mathematical terms the relationships among the variables of a financial problem so that it…

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