Financial Modeling
Financial modeling enables a company to test various scenarios without spending any money. A good financial model incorporates the various operational aspects to more accurately predict new revenues and costs on a group by group basis. A great model incorporates the results of A/B testing so that you can quickly and cost effectively adjust specific sales and marketing campaigns. A financial model can explore the development and introduction of a new product line based on a series of ever changing assumptions. It you have an idea, model and test it to determine which path to take.
Modeling enables you to experiment without disrupting your current operations. It enables you to evaluate different methods and solutions for different problems and opportunities. You can evaluate the various what-if scenarios, and assess the potential results.
Anything can be modeled with sufficient information. Simple knowledge of how something works or will work is the foundation for the initial model. With different types of information a better model can be constructed. A great modeler can identify what additional information needs to be collected to better manage the operation to a successful conclusion.
Before the proliferation of computers throughout companies, it was difficult and expensive to collect and assemble this information. Now there are spreadsheets, statistics and sophisticated enterprise software programs that are spewing data and information daily. It is important to identify and model that key information to give you a competitive advantage.
We can help you with all phases of financial model, information acquisition and the identification of key metrics to better manage your business.
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