Financial Modeling
Financial Models - The ultimate 'looking glass' to keep you in the driver's seat...
A three-way1 financial model is like a good set of headlights on a dark night. Now, that’s the sort of clarity you need!
A financial model allows you to see the road ahead, close the loop from strategy to finance and back again. How will your strategy play out in numbers and does that give you what you want? This type of static financial model is useful for management, banks, investors, founders and valuers who require a snapshot of what the future looks like in numbers.
But what if we could make it even better? Well, we can!
A dynamic financial model can do all that and more. It moves with the business across time and facilitates smart business decisions. Most of us can imagine what happens if one performance driver moves but what if three, four or five move at the same time? When and where do you feel stress and conversely, when and where do you start making good money? How are we performing against expectations? Useful for management who require a decision-making tool grounded in the numbers.
Like mobile phones in the 90s, once you have one, you will wonder how you ever did without a financial model. BridgePoint has built hundreds of financial models and we can do the same for you. Contact us today on 1300 656 141.
1 This fancy term simply refers to an integrated Profit and Loss, Balance Sheet and Cashflow.
What Are The Benefits of Financial Modeling?
Are you making decisions based on gut feel? Are you reacting to what just happened? Do you wonder where all your cash went? Want to plan for your future? Do you want to take control? If you answered ‘yes’ to any of the above questions, you can take comfort in the fact that you are just like 80% of all businesses. Or, you can do something about it.
A financial model really is an amazing tool! Big businesses have been using them forever. Here’s a glimpse of how a bespoke and custom built financial model can serve you:
- It helps you to understand the key drivers of performance, risk and value in your business.
- It helps you to make smart decisions faster and prioritise the things that make the biggest difference.
- It helps you to plot your course and monitor your progress.
- It quite simply puts you back in the driver’s seat.
Why Choose BridgePoint Group To Build
Your Financial Model?
Accuracy
Upwards of 90% of all models contain errors. Why? Because they are built in Excel or Google Sheets by a person who only occasionally builds models. Some start with a blank workbook, some try to modify something they have built before. It’s all a case of garbage-in, garbage-out. Our experienced modelers use highly-efficient, specialty software that not only reduces human error but allows accurate models to be built and checked in no time!
Fast Turnarounds
We know that when you want a financial model built for the first time, it’s probably time sensitive. Our process and software selection has been guided by the notion that ‘sooner is better’. We can turn your model around fast!
Dynamic Models
Our software talks to yours! This creates enormous efficiencies in the build process but more than that, allows you to drive value from the model for years to come – because it is always up to date. With powerful reporting capabilities, our models become a tool for ongoing decision-making, performance monitoring and management reporting based in the numbers.
Links to Real Performance
A model predicts outcomes, based on a set of assumptions. On its own, that isn’t enough to move the dial on performance. That comes down to behaviour. Referencing your unique critical success factors, key performance indicators and hurdle rates of performance, a BridgePoint Group dynamic financial model can be used to create alignment and accountability, at a level of granularity that suits your needs.
Reliable Support
When it’s all said and done, often you need to present the model to third parties – the Board, the Bank, the Investors, management. While you know your business better than anyone, we know the model. Your stakeholders want to trust the integrity of the model and how it converts data to information before they trust the output. Give yourself the time and space to perform your role, let us explain the model for you.
Acumen
Need more help with your business? BridgePoint Group is home to a great range of professionals, with the experience and expertise to help you to plan and create results. Call us to learn more.
What's The Process?
When you engage BridgePoint Group to build a financial model, costs, timing and scope are always agreed up front – no surprises! We will understand the purpose, recommend the model type (static or dynamic) and scope the build so you can get back to your busy day sooner!
When the model is built, we will present it to you, demonstrate the impact of varying key assumptions and explain the output. Finally, if required, we will support the next step – whether that be raising money, presenting to the Board, management or other.
Why Invest In A Financial Model?
It’s reckless behaviour, driving around in the dark. Even worse if you’re a passenger! You now know how to turn on the lights and take control but will you do it?
It costs less than you think to turn on the lights and take control with a dynamic financial model built by BridgePoint Group. Yes, the model itself is sophisticated but our team will make it easy. We already understand most industries. We design and build the model for you and we are well versed in making the output simple to understand and easy to act upon. What a relief to finally be able to see where you’re going and explain it to others!