Our Blog - Blog Index

(5) The Business Plan as part of our analysis

A Business Plan involves looking to the future of our business, whether we are entrepreneurs or a fully established company.

Through it we will try to trace the viability of our business (or business project) over several years, in some cases to create operation strategies and protocols and in other to obtain financing or investment.

Our plan has to analyze the viability of our business (or project) from different points of view: Market Analysis, Marketing, Production and HR, Economic and Financial Analysis and SWOT Analysis. In this post on our blog we focus on the analysis of the economic and financial viability of the plan and, for that, nothing better than practice ... Read more.

(4) Analysis of Bankruptcy Probability

Do we have any tool to define the vulnerability of our company relative to future risk of bankruptcy? Can we know it with enough time to react? Moreover, in a group of companies or a corporation, would we be able to determine which companies have greater weight in the risk of bankruptcy of the whole?

Obviously we are most interested in knowing this information, but it is also very important for financial institutions to which we request financing, for potential investors, for our customers to know if we will be able to fulfill our commitments, etc.

In this subject we will see different indicators, based on discriminant analysis, reporting in advance about ... Read more.

(3) Calculation of the optimal investment

Suppose we have an amount to invest and there are several financial products under different conditions. Our goal is to determine what combination of investments provides the most benefit.

We propose, therefore, a typical linear programming problem in which we seek the maximum of a linear function linked to a set of inequalities representing the existing conditions. The Simplex Method, devised by the American physicist and mathematician George Bernard Dantzig, and consistent approach to the optimal solution of such problems by successive iterations examining adjacent vertices of the polyhedron of solutions ... Read more.

(2) What would happen if ... ? Do we have a Plan "B"?

What would happen if we lost one of our biggest clients? How would it affect the income statement? How much would change our Bankruptcy Probability indicator?

What if we opened a new centre with a specific forecast of revenues and expenses? What if in one of the countries where we are positioned there is a change in tax policy? What if ... ?

It is clear that a very important part of our Business Analysis must be dedicated to the Simulation of Scenarios, sometimes to foresee unwanted situations and other to predict consequences of possible decisions ... Read more.

(1) Sectoral indicators vs. our company

Are Staff Costs of my company in line with the sector it belongs to? And what about profits? Do we have too much Stock? ...

The first step in our Business Analysis is to analyze how we are in relation to our sector existing data. It's not easy to know exact details of our direct competence, but there are institutions that collect general information and offer it grouped by sector and net turnover intervals in economic and financial ratios format.

We are going to see an example of sectoral comparative, and we will explain how to understand and interpret the data, and then we will show how we can access to the sectoral data we are interested in ... Read more.

(0) Blog about Business Analysis and other

We define Business Analysis as "a set of methods and techniques that allow users to take total control of their company or group of companies".

“Business Analysis” is the key for the company future. Finance Department has data that can activate informative and preventive alerts from that standpoint; we just need to incorporate the ability to manage the accounting and non-accounting data together and intelligently so that its mission is critical.

We are going to create different sections where we will explain the main keys of Business Analysis. Any cooperation on your part will be welcomed, if you've accessed here from a debate of some Linkedin group, you can use the group for your feedback or insights and, in any case, you can also use the Comments Area available at the end of each subject.