Charting a Course in Treacherous Waters |
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The greatest care is necessary for success in piloting, especially in poorly charted waters or under unfavorable weather and visibility conditions.
The same truly apply to planning and budgeting high tech ventures.
Case |
Budget and financial model. |
Challenge |
A Texas-based Application Service Provider (ASP) needed a long-term financial plan to interest investors and a detailed operational budget to control its progress. |
CBMI Approach |
Starting from its proprietary template, CBMI prepared a financial model that linked all major variables and the external environment: market data, sales cycle, facilities deployment, hiring of personnel, capital expenditures, operational expenses, etc. Well-documented, it allowed for multiple scenarios and simulation of possible events. The model included foreign subsidiaries operating in local currency. The model could be viewed monthly and followed the client's chart of accounts to be used as an operational budget. CBMI also built a secure web site for investors to access documents from remote locations. |
Outcome |
The client obtained a detailed operating budget
and a 5-year plan. With the model, managers had detailed objectives to
control operations and investor had a flexible tool to understand the
business fundamentals.
The client successfully presented the financial plan to investors and used it to track progress. |
