Learn how to prepare business plan (financial modeling) from the scratch using Kaluta Projection Methodology
For those who have basic knowledge in Accounting (at least diploma level), this is an opportunity for you to become an expert in financial modeling using excel.
It is a naked reality that most accountants (be they degree, masters, PhD, CPA or ACCA holders) cannot prepare business plans either for their own projects or for the projects of the entities they are employed with. This is a product of theoretical nature of curricula used to train accounting and finance professions worldwide.
No wonders then to find that many organizations will look for an expert to prepare business plan for them even when they have employed qualified accountants in their organizations and needless to say that it can be very expensive to engage consultants for the purpose of preparing a business plan for you.
I, Shafi Kaluta Abeid (BComm Acctg (Hons), ACPA, ATIOB, Diploma in Software Applications, Advanced Technician Diploma, System Analyses and Designing), have developed this easy to follow and out-of-the-box proprietary financial modeling methodology using Excel called Kaluta (aka Biznocrats) Projection Methodology which was developed brick by brick in the course of provision of business preparation services for my clients since 2010.
I have prepared many business plans in different industry sectors using this methodology and not a single one was disqualified by banks to which they were sent by my clients for the purpose of seeking either loan or overdraft facility or both hence the methodology is a proven and tested approach to prepare high quality projected financials to be incorporated into promoter’s business plan.
Some of the business partners I worked with in the preparation of business plans include Exim bank, Akiba Commercial Bank, Victoria Finance, Innovex Consultancy Ltd, Prime Consult International Ltd, Chabegan Associates, Arusha Urban Water Supply and Sewerage Authority, Mission Mikocheni Hospital, St Mary’s Teachers Training College, CEC Education, Progress Education Ltd, YAHP Enterprise Co. Ltd, Phantom Oil Ltd, Tanzania Meat Co (TMC) Ltd, Swan Floor Mills Ltd, Light Mission Foundation, Ask Africa Farmer Ltd, Grand Villa Hotel, Horti Organics Pyt (South Africa), Horti Organics Ltd (Tanzania), Tanzania Farm Products Association (TFPA) Extreme Solutions Ltd and FELISA Co Ltd.
The methodology uses transparent cash flow modeling which accounts for only cash related items in the cash flow statement compared to traditional approach used in our curricula where you start with profit before tax and then reverse engineer for non-cash flow items to determine cash flow from operations. The earlier is the approach preferred by banks and financial institutions when you present your business plan because of the clarity it has in demonstrating your cash flow statement which is the most important statement in determining the viability of any projected business model. In fact, it is only this approach the banks will accept if you model for bank overdraft but many analysts model only cash flow statement without being accompanied by projected income statement and balance sheet when they are required by banks to model cash flow in this way disregarding the fact that modeling of cash flow statement which is not supported by other projected statements (income statement and balance sheet) is as good as not projecting at all. It is interesting also to note that some banks will let them get away with it by allowing them to present only projected cash flow statement as a stand-alone not knowing that projecting cash flow statement as a stand-alone is as good as no projections at all!
Watch a demo video attached to this gig which illustrates how we do transparent cash flow modeling using Kaluta Projection Methodology.
It will cost you only USD 100 to get the videos and their accompanied excel worksheets from this platform that will teach you step by step in 11 lessons how to do financial modeling using this Kaluta Projection Methodology.
Honestly, you can read all the books and attend all the expensive courses in the world and yet you won’t get even half of the practical exposure you will get by attending this course.
You might even be aware of qualified accountants/economists/finance specialists in your organization whom your organization have paid for them to attend special courses/workshops/seminars dedicated to financial modeling and they have returned home empty handed since they still don’t have expertise to prepare real world business plans themselves. Not with my course.
Don’t let yourself or your employer pay for business plan preparation costs anymore. It is expensive to engage competent consultants to do it for you. Most competent consultants will charge you not less than USD 500 to prepare a business plan for you.
For graduate accountants, economists and finance professionals, you can employ yourself by using this knowledge to prepare business plans for others.
What are the contents of the tutorial?
This financial modeling tutorial has started at a high level position in order to give you a big picture of modeling techniques before you get lost in its details and slowly releasing each projection situation while you still have a big picture and hence it is logically easy to follow it up step by step as I introduce other areas of projections within the big picture.
The first part deals with generation of assumptions used to project financials. The methodology is presented on monthly basis for the period of three year projections but it is so easy that you still can project using this methodology for even 20 years using monthly projections! It also deals with modeling of income statement and determining the effect of variable and fixed costs in projections. This modeling exercise was designed for retail business but you can apply the knowledge to any type of business after understanding the logic of this Kaluta Projection Methodology.
The second part of tutorial deals with projection of cash flow using this powerful Kaluta Projection Methodology. It is from this area where this modeling is too powerful to let it go. The part concludes with projection of balance sheet.
The third part introduces modeling of overdraft at high level when the cash flow balance is negative and then goes on to introduce modeling of fixed assets.
The forth part dwells on replacement and disposal of fully depreciated assets during planning horizon. It also deals with introduction of cash flow pattern on monthly basis from the expected business inflows and outflows. Huge emphasis is given to cash flow pattern on monthly basis in order to exact the timings of cash flow patterns with a view to having sound business valuation since the business valuation relies exclusively in timing of the cash flow pattern. This is where this Kaluta Projection Methodology scores points above the rest in its financial modeling. Introduction of debtors, creditors and accrued expenses are also brought in here in this part as byproducts of emphasis on cash flow timings.
The fifth part keeps on with determination of cash flow timing/pattern on outflows and introduction of financial modeling for prepayment again as a byproduct of emphasis on cash flow timings. It then introduces modeling for cash flow from financing activities and concludes with introduction of injection of capital needed to run the projected business model.
The sixth part deals with establishing annual financial statements from monthly ones, performing ratio analysis and assessing the plausibility of projected financials using calculated projected ratios.
The seventh part deals with valuation of projected financials to determine whether the projected business model is economically viable or not under assumption that only capital injection is used to finance the new business venture. It explains how required rate of return is established, establishment of the terminal value to take into consideration the continuity of the business beyond planning horizon and establishment of valuation metrics using NPV, IRR, Profitability Index and Pay Back Period. It ends up with giving interpretations of projected valuation metrics.
The eighth part deals with introduction of loan financing in tandem with equity financing, development of loan amortization schedule and segregation of loan amount to long term and short term portions. It then incorporates loan repayments and interests into projected financials. After incorporation of the loan financing, it demonstrates how to use unlevered free cash flow as a base for valuation when both capital and loan are used to finance the business operations. It ends up in explaining how weighted average cost of capital (wacc) is used to value the business when equity and loan are both used for financing.
The ninth part dwells on evaluation of projected valuation metrics and later introduces modeling for payroll which involves computation of social security, P.A.Y.E and other government levies.
The tenth part deals with incorporation of payroll modeling into projected financial statements and determination of working capital investment needed to run business by analyzing cash flow from operations.
The final part dwells on stress testing of projected base/modal financial statements by stress-flexing its key value drivers under both stand-alone basis and scenario analysis in order to build contingent plan that will be needed in case the stress-tested situations crystallize.
Get the details of our services here http://biznocrats.net
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