Forecasting Model Like Piece of Cake Credits to Bojan Radojicic follow him for more finance insights! ~~~~~~~~~ 𝙏𝙝𝙚 𝙤𝙧𝙞𝙜𝙞𝙣𝙖𝙡 𝙥𝙤𝙨𝙩 𝙞𝙨 𝙝𝙚𝙧𝙚: 𝗪𝗮𝗻𝘁 𝘁𝗼 𝗰𝗿𝗲𝗮𝘁𝗲 𝗮 𝗽𝗲𝗿𝗳𝗲𝗰𝘁 𝗳𝗼𝗿𝗲𝗰𝗮𝘀𝘁 𝗺𝗼𝗱𝗲𝗹? This is how I can assist you. Before you start, look at these pre-forecast steps 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 Understand the company's core business model, revenue streams, and customer segments. Identify key value propositions, competitive advantages. 𝗗𝗮𝘁𝗮 𝗖𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗼𝗻 Gather historical financial data, if available. Collect industry benchmarks and market research data. Obtain detailed information about products/services. 𝗗𝗲𝗽𝗮𝗿𝘁𝗺𝗲𝗻𝘁𝗮𝗹 𝗜𝗻𝗽𝘂𝘁𝘀 Communicate with heads of departments to gather their input and assumptions. Collect data on departmental budgets, expenses, and growth strategies. 𝗠𝗼𝗱𝗲𝗹 𝗢𝗯𝗷𝗲𝗰𝘁𝗶𝘃𝗲𝘀 What the model will communicate to users? Will they understand the model? Key model outcomes 𝗠𝗮𝗸𝗲 𝗠𝗼𝗱𝗲𝗹 𝗟𝗮𝘆𝗼𝘂𝘁 Define what schedules you will include. How you keep consistency in formatting? How will key model outcomes look like? Now you can can start with analytics and schedules 𝗦𝗮𝗹𝗲𝘀 𝗗𝗿𝗶𝘃𝗲𝗿𝘀 & 𝗔𝘀𝘀𝘂𝗺𝗽𝘁𝗶𝗼𝗻𝘀 → One-time revenues → Annual growth rate → Sales structure per regions → Net promoting score → Industry growth → New products launch → Market share trending → Time series → Seasonality factors ...... 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁𝗶𝗻𝗴 → Revenue types and units → Revenue churn rate → Growth rate per types → New sales % in total sales → Growth rate per units 𝗖𝗢𝗚𝗦 𝗮𝗻𝗱 𝗚𝗣 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁𝗶𝗻𝗴 → Historical data → Movement in purchase prices → Contracts with suppliers → Operating plan → Factors impacting purchase prices → Expected discounts → Patterns, peak seasons → Gross marking analysis → Shortages. Scrap % 𝗦𝗮𝗹𝗮𝗿𝗶𝗲𝘀 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁𝗶𝗻𝗴 → Growth rate → Other personal expenses → Industry benchmarks → One-time costs → Bonuses 𝗢𝘃𝗲𝗿𝗵𝗲𝗮𝗱 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀 → Fixed costs review → One-timers → Recurring costs → Operating plan → Patterns, peak seasons, trends → Professional fees 𝗡𝗲𝘁 𝗪𝗼𝗿𝗸𝗶𝗻𝗴 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 DSO Current assets share in revenues DPO Current liabilities share in revenues Projected COGS DIO Projected revenues 𝟯 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁𝗶𝗻𝗴 Transfer the outcomes from previous planning stage into financial statements → Assets = Liabilities → Cash end in CF = Cash in BS → Net income reflected in BS ~~~~~~~~~ 📌 If you want to upgrade your career in finance, start with our Corporate Finance Modeling Masterclass: 💠 40 Lessons 💠 7 Hours of video course 💠 50+ Excel modeling sheets 💠 330 pages of PDF modeling tutorial Start here: https://bojanfin.com/ ~~~~~~~~~