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…

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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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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…

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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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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…

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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…

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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? It was said that a financial model is designed to represent in mathematical terms the relationships among the variables of a financial problem so that it can be…

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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…

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Budgeting

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…

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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 which has not been subjected to the bargaining process. Like accounting,…

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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…

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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…

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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…

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Project Finance - Infrastructure

All About Project Finance

Project Finance Business Most of the people in the project finance business have dedicated their lives to implementing around the world, big changes and great ideas such as supplying energy, water, transportation, and other infrastructure. Through private sector investment, they aim to do good for the world including alleviation of poverty through economic development and…

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Guide to Creating a Business Plan for a School Business which Works!

“Let us think of education as the means of developing our greatest abilities, because in each of us there is a private hope and dream which, fulfilled, can be translated into benefit for everyone and greater strength for our nation.”— John F. Kennedy   Starting a School Business Education is a preparation to deal with…

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Best in Class Property Appraisal Methods and What to Look Out for

Most people experience the real estate exercise called property appraisal at least once in their lives. Despite this exercise being so common and necessary, many people do not have a clear understanding of this concept. The appraisal is a method by which the fair value of a property is ascertained. Seller and buyer may settle…

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Do You Need an Investment Proposal Template in Excel?

How can you secure funding from investors? – Winning investors requires a great investment proposal! In the last decades, financial modeling has become the professional standard to demonstrate the financial feasibility of a proposed investment. A good investment proposal is prepared as Excel spreadsheets and details all the planned revenues, costs and capital investment required….

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Real Estate Financial Modeling in Excel

Real estate is widely known as one of the most popular industries that are continuously attracting investment despite tough competition. For many projects, sophisticated real estate developers and investors create detailed real estate spreadsheets mostly in Excel to obtain a better understanding of their projects are financial feasibly and run scenarios to identify worst-case and…

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Why do you need a financial model?

  Financial modeling involves analyzing historical financials in detail and coming up with future financial projections based on certain assumptions. Therefore, financial models have become handy tools for entrepreneurs, financial analysts, investors, and business executives. So, let’s shortly recap the different ways financial models can be used for. Analyzing and understanding a business: Developing a financial model helps…

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