A financial plan is NOT to be confused with business plan. E-Q develops financial models on behalf of their customers based on 3 simple principles:
Exhaustive business processes representation. E-Q financial plans include details about: Fixed/variable expenses, Revenue model, Gross and operating margins, Profit potential and durability, Break-even point(s), Cash balance, Net Working Capital dynamics, Cash flow changes.
Monthly and yearly detail. To identify a Business Startup Budget expenses - both startup costs (investments and expenses) and ongoing expenses - need to be evaluated on a monthly basis. As well revenue expected based on effective launch of the product or services need to be inputted on a monthly basis, plus revenue expected values need to be integrated with working capital dynamics. Only in this way the analysis can conduct to the identification of the total Business Startup Budget to reach the month-year situation where the company is able to enter an auto-financing phase.
Base, Bank, Best and Worst case scenarios (3B&W) Startups fail because they run out of money and one of the main reasons they run out of money is because their financial planning consists of optimistic projections of the best-case scenario, based on bad data or no financial planning at all. E-Q financial models take into account scenario analysis, the process of examining and evaluating possible events or scenarios that could take place in the future and predicting the various feasible results or possible outcomes (Corporate Finance Institute Education Inc.) The scenarios are developed based on a list of the key assumptions that are most representative of the company the plan is relating to - e.g. typical risks mentioned by investors approaching the company, volatility of consumer behaviour, etc:
Consequently, in E-Q we realized in collaboration with a startup and its ecosystem BeFound, an assessment methodology that on one side relies upon scientific tests and qualitative thus schematic approaches to assess the person's ability to grow. We defined an evaluation process, which allows us at E-Q together with psychologists and coaches to analyse and synthetize these results to make them interesting for a 'business' evaluation of such personalities.
The combination of a psychologist and a coach can be of great advantage in order to overcome the limitations due to the rigidity of personality assessments.
Therefore, we must understand how the entrepreneurial team is composed and the effects hereof, in order to fully understand the team's performance potential. We at E-Q offer our support assessing the team itself: we take a closer look at the startup team and its members, when investigating startup performance.
Many Venture Capitalists (mostly in Silicon Valley) rely on personality tests that they might have encountered in a corporate career, such as the Myers-Briggs and Hogan Assessments and other psychometric tests, which rank people according to personality type.
Skills as a Service
Developing in us the necessary experience vs. the containment of working capital, through verification of the credit policies vs. Customers; Stocks, Suppliers, Banking System, Investment Funds and of course, internal processes. Over time we have had the opportunity to work, representing business interests with national, regional and global objectives, towards shareholders, government institutions, mass media and in general towards the global consumer.
Our Selected capabilities allow the Client to build the dream extended team they truly need. Without preconceptions or pre-fabricated projects. This is the concept of Skills as a Service, whether industrial, entrepreneurial, financial, legal or marketing we balance them according to your request and the goal you have set for yourself. We balance enthusiasm with rules, hopes with certainty, project and numbers. We balance dreams and business plans to let them become realities.
Need 2 Complete
Business and Financial reporting is the practice of reporting and disclose financial information, status and performance of a business over a specific time frame.
For the companies:
Accurate and regular reporting and analysis help the company understand owned finances and milestones reached/unreached so it can make better decisions about its business (and know when to scale). In addition, investors will be looking at your performance on a regular basis and be ready for add-on financial support or intervene for enabling important partnership or commercialization agreements to be entered into.
An external party conducting regular reporting enables investors to monitor its investment based on financial plan shared at the time of the investment and take action when needed in order to ensure its investments can be improved at the right timing once the company could need its intervention,
E-Q Need 2 Complete model is based on a systematic structure that is adapted to each distinct business and agreed upon financial plans.