Business Planning and Financing with the Whatif System

Hugo Daems - Business Planning and Financing with the WHATIF System This book explains how and why planning is conceived and implemented. The steps lead to convincing prospective owners that investments will be recovered profitably, and when correctly implemented to convince lenders that loans will be repaid. It examines the basic nuts-&-bolts for putting a business plan together & lists components to consider in assembling them into a solid plan. It explains the most common methods of measuring profitability and points out uses & misuses of each profitability measure. The WHATIF System is a software program with 3 main functions: SIMULATE, AUTOMATE, and GRAPH. The WHATIF System allows you to create a financial profile of your proposed project, also known as your Base Case. The SIMULATE function analyzes your Base Case and calculates the projects' profitability measures ROI, ROE, Payback, and Minimum Loan Term, along with standard financial reports for the project. The AUTOMATE function performs WHATIF changes to your Base Case by modifying your financial assumptions up and down by percentages. The default percentage changes are from 70 percent of your Base Case values up to 130 percent. The AUTOMATE function runs the SIMULATE function for each of the percentage changes. All of the resulting profitability metrics results are saved in Sensitivity Results reports that can be printed or Graphed. The GRAPH function generates a 1-page graph of the profitability metrics in your Sensitivity Results reports. The graph allows you to easily see the profitability results of a wide variety of one or more simultaneous changes in your Base Case. You can select from 1 to 18 SENSITIVITY REPORTS and GRAPH the results of all of the chosen ones on a single page.