I am evaluating the financial and economic plan of one company within the framework of its business plan for the next five years.
One tabular material with a bunch of necessary and unnecessary tables on 40 sheets. Plus pictures, i.e. diagrams, are the same. I'm starting to realize that probably everyone who created this or recently "jumped" off the student bench or is trying to justify their importance to the employer, thus drawing all this in such numbers and in such perverted forms.
Having looked through all this talmud and looked at the forecast cash flow by year and how it's all tied up in balance sheet, I conclude how finance works - an increase in net liquidity (cash) at the end of the analyzed period and investments in current and non-current assets. Separately, I approach the assessment of how much all this (investments) in today's value system and in the near future (macroeconomic analysis) can change the level of its capitalization in a positive direction. If I don't catch up with the technological aspects myself, I turn to the right people (professionals in this industry).
The rest of the slag with beautiful pictures and "necessary indicators", such as the ratio of accounts receivable to accounts payable, the coefficient of financial mobility, timely payment of income on capital, the level of permanent capital, innovations in production volume, etc., I filter out immediately.
I wonder if they even understand themselves why this is considered, except as indicated in the manual.
All this means that the planned justification of the economic effectiveness of the company's activities should fit no more than 5 sheets with the layout of the key for the investor - production (product release program), investments (turnover and non-working capital), money and balance sheet.
If there is a need to justify the calculation of any algorithms, then this is another story with the analysis of the financial and economic model on the basis of which this project is built.
Without an automated business model, it is impossible to make its economic forecast. Keep this in mind!
Do not scare off the investor with such an approach to attracting "money" into your business. Always proceed first of all from his ultimate goal, and not your own - for whom and for what this document (business plan) is needed.
