4-YEAR BUSINESS PROJECTION AND FINANCIAL MODELING TOOL
I don’t think too many small to medium size businesses will be too eager to invest in transforming their business unless they have some idea of the projected outcome. In our evaluations of many small independent resellers of office products and supplies we have determined there’s not much time devoted to business planning, budgeting and strategy. Usually it’s a case of day-to-day survival.
Recognizing this as just the way it is we have invested our time to developing a proprietary business projection modeling tool. This facilitates the small business owner to plug in their trailing 12-month financial data and to create a baseline four-year business projection. Based on the authors knowledge of the industry and the expected market decline then the 4-year outlook on the baseline business is most likely negative.
4-years of market decline and price compression totaling 5% per year combined with a similar level of customer churn halves a business size over a 4-year period!
The model then facilitates layering in a digital strategy using social media and content driven marketing to drive relevant website traffic. A portion of the traffic is converted to leads which are then nurtured through the sales funnel until a portion of them become customers.
See our Lead Generation Model and calculator in action and experiment with different customer churn rates alongside different conversion rates through the sales funnel. See the dramatic impact these have on the total amounts of traffic required to achieve intended sales goals.
Most small business owners will concede they don’t have the analytical or financial skills to create a 4-year plan of this quality. An outside consultant would cost thousands of dollars to generate a plan and would be unlikely to have the 35-years of relevant experience held by the model developer and author!
- Before starting this course you must complete the required prerequisite course: 2. Office Supplies & E-commerce
Digitol Training – Preview
The Business Projection Model – Baseline
The Business Baseline
Enter your trailing twelve-month financial data and the model calculates a 4-year baseline projection. Data is populated on a monthly basis effectively creating an operating budget.
What have we learned (1)?
The financial data for the Trailing Twelve Months has been entered – what have we learned?
Business Projection fine-tuning
After establishing the baseline and 4-year projection we analyze critical key performance indicators and enable the outlook to be fine-tuned.
What have we learned (2)?
The trailing twelve month financial data has been analyzed and adjustments to the key performance indicators on the Balance Sheet and Income Statement made. What have we learned?
The Business Projection Model – New Business Development
A Social Strategy & New Business Development
The impact of a digital marketing strategy for winning new customers and transforming a business. Audience building and engagement for the purposes of developing web traffic and generating leads.
Lead Generation Model and Calculator
The negative impact of customer churn and varying the effectiveness of conversion rates through the sales funnel. A unique view of how much web traffic s required to generate new business to achieve a goal.
What have we learned (3)?
Social Audience building, engagement and the sales funnel have all been explained. What have we learned?
The Business Projection Model – Return on Investment
The return on investment
A look at the four-year business projection, the baseline and the new business along with the estimated cost of investments required to support the plan.
Market Share Analysis
Anyone can develop a business plan but the key is a test for reasonableness. By linking the population in the defined “territory” we test the model output against predicted market share.
A discounted cash flow analysis
Learn about the discounted cash flow method for business valuations comparing a baseline (analog) model with a new business (digital) model complete with projected business valuation.
What have we learned (4)?
The investments required & returns expected for a digital transformation have all been identified and explained. What have we learned?
Business Projection Model Conclusions
What did we learn and what does it mean for the demo we ran through?