BHVC builds highly detailed five year proforma financial statements, including assumptions, income statements, balance sheets, cash flow statements, key measurements, and a valuation of the business. Models are built using either Microsoft Excel or by using planning software from our partner company, Alight Planning (www.alightplanning.com). Various scenarios (best case, worst case, most likely) can be quickly developed from either model type. 

Financial modeling is the backbone of any good business plan. Every section of the business plan feeds into a set of assumptions that drives your financial model. Your financial model tells that story of the first five years of your business as you grow into a mature enterprise. Blue Horizon develops a detailed five year set of proforma financial statements including a revenue model, income statement, balance sheet, and three types of cash flow statements that gives you and your investors a thorough understanding of your business model inside and out.

The crux of your financial model is the set of assumptions that drive your business. These assumptions are what you must be able to defend when pitching your plan to investors, partners, and employees. Once you get buy in on the assumptions that drive your business, the rest will fall into place. Blue Horizon believes in building conservative and realistic financial models that can easily be defended.

Scenario analysis is also a critical component of good financial modeling. These “what if” models help investors understand worst case, best case, and most likely scenarios that will enable them to make the best informed decision.

A financial model is only as good as the level of understanding of the reader. Blue Horizon financial models contain summary charts and graphics that clearly explain a firm’s expected results and requirements. Financial model summary output is put into a detailed, yet concise format that combined nicely with your business plan as an appendix to create one complete seamless document.

 
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Blue Horizon can also perform financial modeling, analysis, forecasting and budgeting work for companies that are operational an generating revenues. We recommend Alight Planning software as a financial analysis tool for your going concern, and we are certified Alight consultants who can help you build your Alight models.