Project
Business Strategy Planning.
Project Trigger
To support their five year Growth Strategy, the Client sought to develop a Financial Forecast to validate the strategy and plan out financing requirements.
Our Scope
- Over a four-week period, we delivered a detailed financial forecast for the next five years, including profit and loss, cashflow and balance sheet.
- This followed a strategy planning process that Active Directions had facilitated with the leadership team.
Project Outcomes
- The strategy was approved based on the financial modelling.
- Investment and acceleration of the national distribution model was identified as a critical factor to achieving the investment and business objectives.
- Focus on the right profile of projects was also identified to the success of the strategy from a financial perspective.
Our Value
- Clearly mapped out improvements in gross margin to set the foundation of the strategy, along with substantial revenue growth planned out.
- Modelled targets for forecasted decrease in inventory days, aimed at greater efficiency through managing inventory through higher stock turns.
- Mapping a resource plan aligned to the financial model, including triggers for each additional headcount over the five year period.
Top 3 Tips
- Detail your strategy plan prior to transitioning to the financial modelling, with assumptions for each strategic project built out completely.
- Engage department leads to take ownership of the financial assumptions early.
- Establish aligned shareholder and business goals to ensure the financial model is driving towards a common goal.
