Every business plan includes a financial section. In this financial section, the assumptions that you make in the strategic - i.e. written - part of your business plan are backed up with figures. This serves to show readers that your assumptions also make sense in implementation, i.e. that they are realistic and feasible.

At the same time, the financial section - if it is done well - is the basis of your operational management. Here you can see what goals you have set for yourself and what adjustments you need to make to achieve them. Ideally, your financial section is your cheat sheet for everyday business.

For this to happen, you need a financial section that takes your strategic ideas and processes them realistically. This processing must be dynamic, which means you must be able to adjust figures and thereby influence other figures. At the same time, these figures must be detailed enough to have a real operational impact. Simply establishing a relationship between sales and profits is of no use operationally. You must understand what drives your sales, what influences your costs and how these two figures are related.

For example, a manufacturing company needs to know how many resources are needed per unit produced, when new resources (e.g. employees) need to be hired and how this all affects sales and cost forecasts. This is the only way to effectively manage order volumes and employee planning.

With us you get exactly that – tailored to your individual business.

First, your business plan is always your north star. It shows you where the company should develop. Here you can strategically reflect on what you are planning, which projects are relevant to you and how you want to position yourself in the coming months and years. The financial model serves as an operational control basis on which you can make decisions about investments, employee planning, goals and other project-based topics. The KPIs included in the financial model give you clear control elements that enable you to develop along your planned path. Even though you probably already have an idea of how your company is positioned financially, a financial model helps you to represent and vary future developments based on clearly defined assumptions. This way you can see what influence certain changes in your operational business will have on your results.

Secondly, you often need external investors to finance growth, projects or company takeovers. In this case, you definitely need a business plan and a financial model, because external investors (banks) in particular, but also equity investors (investors) or funding institutions always want to see a business plan with a financial model.

Third, a financial model will help you if your company needs to reorient itself, for example if sales are falling or costs are rising. This is where the first and second reasons come together. On the one hand, you need to develop a deep understanding of your business and, on the other hand, you may need to convince external investors to provide you with additional funds.

A financial model gives you a comprehensive insight into the fundamental aspects of your business's financial performance and its future development. By analyzing sales forecasts, cost structures, investments and other financial metrics, it enables you to make informed decisions. In short: It shows you what you need to do to achieve certain goals. For example, how many units you need to sell to achieve a certain revenue or EBITDA. In this way, the financial model serves as a valuable tool for planning, controlling and optimizing your business.

A financial model consists of two essential components: input and output.

The input includes data about your operational business and maps it - from the customer funnel to production to aftersales and customer service - in as much detail as necessary and at the same time as concisely as possible. We take into account all relevant details that influence your sales and costs in order to realistically model your business.

The output consists, on the one hand, of the three traditional financial statements (profit and loss statement, balance sheet, cash flow) and, on the other hand, of output KPIs (key performance indicators) and visualizations. These output KPIs provide a clear overview of the financial health of your company and enable you to monitor and analyze important metrics in order to make informed business decisions.

You should always work with a financial model when planning a complex project that has financial components or consequences.

At its core, a financial model serves two main functions: operational and use for financing or capital raising. While financial models are most often required in financing requests, it is important to recognize that they are extremely useful at an operational level as well.

When it comes to financing, the investor or bank wants to see how your business will develop in the future and what assumptions are underlying these forecasts. What is less well known, however, is that you should also use your financial model operationally to set goals and monitor your performance.

Every financial model contains key performance indicators (KPIs) in the output that you can use for this purpose - a simple example would be sales. This way you can measure whether you and your business are on track or what you need to do to stay on track. Your financial model therefore acts as a control tool that helps you to direct and optimize the success of your company.

Traditionally, a financial model aims to show the development of the three financial statements (profit and loss statement, balance sheet, cash flow) over time. Financial models can vary greatly in terms of the level of detail. The simpler models assume a percentage growth of the various figures in these statements, while the more detailed models take every single operational assumption into account. The reality is probably somewhere in the middle and must be determined on a case-by-case basis. The decision as to whether a monthly or annual presentation makes more sense must also be made individually.

In addition to the classic 3-statement financial model, many other aspects can also be modeled - for example, individual projects or scenarios. It is also possible to create detailed views of cash flow, which is often helpful for operational control. 

Every financial model and business plan we create is unique - just like every company we support. Our process begins with a joint analysis of the specific assumptions that form the basis of your business, the so-called model drivers. Building on this, we look at the relationship between these different factors and their impact on the three financial statements (profit and loss statement, balance sheet, cash flow). We also identify relevant output measures (KPIs) and consider how we can present them in a graphically appealing way.

In the business plan, we then show strategically and operationally how you want to achieve your financial goals. This includes not only your product, but also your entire strategic direction and planning. Finally, we design all documents in your unique design - with or without specifications from you.

No problem - that's what we're here for. Either you already know what you want to achieve (for example: "I want to earn €5,000 a month"), or we work together to calculate what you should achieve. We work out the input for both scenarios in joint discussions, which are included in all of our packages.

Our goal is to take as much work off your hands as possible.

Our kick-off lasts about an hour, during which you can tell us all the important information about your planned company. Don't worry, we'll ask you the right questions to find out what we need to know. Before or after, you can send us all the relevant documents you already have - be it notes, drafts for financial planning, BWAs, pitch decks, requirements from your investors, initial operational results or objectives. If you already have finished documents, all the better! In this conversation, we will give you initial strategic assessments of your business.

After the kick-off, we may get back to you by email with questions. As soon as the first draft is ready, you should read it and give us your feedback. This will usually take up to an hour of your time. If you have any questions, we can arrange another phone call or you can send us your questions and comments by email.

We then implement your business plan and your financial model in a creative way. This means that we integrate your corporate design or your design ideas. Each design is implemented by a professional designer. You are also welcome to give us feedback here, which we will implement.

Finally, you will have a one-hour strategy meeting with one of our team members. Here we will discuss your business plan and financial model in detail, answer your questions and determine the operational implementation of your idea.

Normally, you will have invested no more than four hours until you have your final product.