A brief overview of Financial Modeling - Aspire Now Global
Planning is the first essential element of an organization’s vision; it comprises various steps. The first step is formulating the qualitative and quantitative expansion, sustenance, and fundraising plan. The qualitative part of it contains the scoping of products and services, market research, and validation. However, the quantitative aspect includes financial planning, projections, and budgeting. Financial Modeling usually helps model this quantitative aspect. A Financial Model is a quantitative exercise usually involving MS- Excel, used to map unit economics of each part of an organization, along with product lines that might be added into the future to project an expected revenue base, costs involved and valuations, if required. There are various approaches to this: - 1. Top-Down Approach- Under this approach, the financial analyst would start with looking at market players, shortlisting the KPIs and industry scenarios. Post that he/she would be able to proceed further ...