[FEB 19] BMC/PNL Experiment - Fiji Socon
BMC Experiment
Purpose: To gather information from FI’s, SME’s and secondary data to create a Profit and Loss (PNL) statement based on assumptions of how PEV would run a Microfinance business in Fiji.
By evaluating the profits and losses of running a MF business in Fiji we can determine its capability and thus viability in the future. Whilst profit isn’t as accurate a measure for a Financial product (due to its inability to capture time values) we believe this experiment is a needed first step in evaluating the viability of the business.
Assumption: It is viable for PEV to run a Microfinance business in Fiji.
Time Box: 2 Weeks
Success Metric: % of profit margin delivered by the PNL statement.
Green Light: Continue to develop the Lean Canvas , and start to look into the development of a product.
Success point: Reach a profit margin of 30% or higher.
Orange Light:
a) Re-evaluate the assumptions of our assumed losses to verify the figures
b) Re-evaluate the assumptions of our assumed profits and potential financial products.
Potential optimisation can be completed of the existing PNL.
Failure Point: Profit margin is 10% or below.
Red Light: Review the ability to offer a financial product, investigate alternative approaches to our operations.
Experiment build:
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BMC will be created for SoCon’s MF business (see link for BMC assumptions): https://docs.google.com/spreadsheets/d/1b28ctX5_X4KAGl103gxIEdIZ9YBBGueh9pMYy02K5cQ/edit#gid=0
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Assumptions will be made for each section of the BMC operations, backed up by previously found data, investigation and secondary sources.
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For each section we will be validating through communicating with relevant parties ie;
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Surveying FI’s to validate our operational assumptions
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Conducting surveys to validate our assumptions for our perceived CS (SME’s)
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Conduct secondary research into other banks BMC’s.
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Therefore we will leave with a basic MVP of a BMC for our Socon Business
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PNL will be used to determine profit margin; link: https://docs.google.com/spreadsheets/d/1U3am9gD1GuwtuYUNqkNPBueRZ7qwae9Bi4UmLlA3-Sk/edit#gid=1865630392
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Develop a basic PNL template.
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Design survey questions to ask FI’s and SME’s.
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Gather data from primary and secondary research into the losses or expenses PEV will have to encounter.
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Collect data from primary and secondary research into the potential profit PEV can make.
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Use data gathered on expenses and profit to evaluate the profit margin from our assumptions.
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Analyse the results from the data collected.
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Refer back to the success metric to determine the next move.
Lucy Preiss 9 months ago
Status label added: Experiment adopted
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