Financial Forecasting Model Types

Financial Forecasting Models come in several different types.  The type is determined by the purpose for which the Model is built.  For example, a Model prepared by an Investment Banker for an acquisition, is very different than a Model prepared by a financial advisor for a client in bankruptcy.

Also, a Financial Forecasting Model will differ based on the industry of the company being modeled.  For example, a Model prepared for a manufacturing company is different than one built for a software company.  Both such models would include a projection of Sales, but only one, the manufacturing company, would include a projection of inventory.

Entrepreneurs have a special Modeling challenge:  they know they need to spend time with the financial spreadsheets to build a Model, but such a task often isn't "in their wheelhouse".  Hiring a financial advisor is out of the question because of the high cost and limited funds available.

This web site is for Entrepreneurs!

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