projecteverest

[Proposed Experiment ]: SoCon Fiji December 2018 - Financial Model Plan

by
Vanessa Zheng
Vanessa Zheng | 4 months ago | in Fiji - Social Consulting

 

Lean Phase: Revenue streams

Question: Can we utilise a financial model to establish a sustainable and scalable business?

Purpose: To determine the usefulness of a financial model.

Assumptions:

We assume that a financial model will help us gain better insight into our payment plans for buka stoves r.e:

  • Margins
  • Prices
  • Revenues

Time Box: 4 weeks

Success Metric:

The financial model will consist of 4 aspects (stated below in the experiment build), as based off of the Malawi Project Everest Solar Consulting financial model.

Green Light - If assumption is proven, the next move is to alter our interest rate and payment plan costs to reflect the findings from the financial model. 

Success point - Success if the financial model is able to provide correct and understandable information that assists with budgeting decisions and choices regarding how much interest should be charged and the required profit that should be received from a payment plan.

Orange Light - Optimise, seek guidance from an external source (ie. a source that is not apart of the Social Consulting team)

Failure Point - Failure if financial model does not provide us with any relevant information.

Red Light - If failure point is reached, a higher contact with extensive knowledge in finance should be contacted. 

Experiment build:

  1. Build financial model including tabs/sections for financial statements, revenue model, cost model and cost assumptions.

  2. Test financial model through recording the purchases and sales of the Buka stoves.







edited on 19th December 2018, 00:12 by Vanessa Zheng
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