The process of business consulting is divided in two parts: Feasibility Analysis and Financial Projections Financial Feasibility Study is an assessment of the financial aspect of your business. In other words it is the ability to evaluate the total financials involved in terms of operating payments, debt commitments, start-up capital, investor income, revenue etc. With the help of a detailed analysis of the overall financial feasibility it is easy to analyze that whether the project is viable or not.
The Financial Feasibility Analysis is quite essential in today’s competitive and complex world. It is very important for an enterprise to know and understand the market and financial projections of a proposed project before investing any funds.
In most of the cases there is a high risk of biting the dust if proper market and financial feasibility analysis is not performed. Such type of analysis can provide you with a deep insight of profit and loss.
With an intense competition in the market and rapid technological enhancements, the products or services are being overtaken or becoming redundant at a faster pace. For instance a fast moving product or service of today may not continue to be in demand tomorrow. Similarly, methods of manufacturing products also undergo constant changes. Newer and more efficient manufacturing methods capable of improving the product quality and producing at a faster rate with a lower cost are being introduced at shorter intervals. With this given scenario, it is prudent to carry out a detailed market and financial feasibility before investing in a new project or an expansion.”
Bunch’s experienced team maintains a database of macroeconomic and industry insights which strengthen our services of providing potential investors and money lenders with a detailed statistics on how a project can be expected to perform in existing and forecast economic environment. We provide a detailed reporting on financial projections and assumptions based on in-depth market demand and supply surveys.
A financial projection is a detailed analysis of future revenues and expenses. These type of financial forecast focuses takes into account historical data such as financial statements, accounting details etc along with other external market factors.
To get the best possible results the financial forecast consultants draft a short-term and mid-term business plan. The short term business plan is the one that is planned for the first year and is a detailed month wise execution and analysis plan. The mid term plan typically varies over a range of 3 to 4 years with the financial information forecasting of an entire year at one time.
All financial projection must include 3 main key elements viz:
- Income Statement
- Cash Flow Projection
- Balance Sheet
Income Statement: An income statement highlight revenues, expenses and profits of any company. Planning these projections prior to the start of any business or investment is the key area of rumble.
Cash Flow Projections: A cash flow projection document helps you to justify that your credit score is worthy of issuing of loans and other financial liability. This projection highlights that you have the repaying capacity if a loan is granted.
Balance Sheet: A balance sheet is the best tool to analyze and form a clear picture of the financials involved in the business at any point of time.
At Bunch, we utilize our detailed knowledge of market in combination with our extensive industry research experience to produce and form some of the best possible financial projections for your business.