Models in general are simulations that help people to understand something really complex. The basic principle behind modelling is actually quite easy to get to grips with. Do I need to take courses in Excel and accounting?.How to create a financial model for your business.How you’ve probably done some financial modelling already!.The types of financial models and how they are useful for you.I’ll also explain how Brixx, our software, can help unlock this process for your business by reducing the barriers to entry. I’ll run through the traditional methods for creating a model and what they are used for. In this article, I’ll introduce you to the world of financial modelling. If those barriers weren’t present then it’s an activity almost any business could yield great benefits from. It’s generally because the process requires expertise and time not available to small teams. It’s generally not conducted by people inside small businesses.Īnd that’s not because it isn’t worthwhile for small businesses. It’s a process that is generally conducted by financial institutions or large corporations with dedicated financial teams. In contrast, financial modelling is a tool used for aiding strategic planning and decision making. For example, here at Brixx we use a SAAS (software as a service) business model to generate revenue. A business model is the method by which your company generates revenue and makes a profit. It’s actually an obvious way to assess any important decision you need to make.įirstly, to avoid any confusion, we are not talking about your business model. However, most people interested in growing their business will have conducted some form of financial modelling whether they realise it or not. Traditionally the realm of financial analysts, it’s not something you’d associate with small businesses.

It sounds complicated and honestly, it really can be. Financial modelling is a term that rarely leaves the corporate finance world.

Small business modelling tools