Applying What I Teach, and Teaching What I Apply!

I started Leveraged Growth to use my Finance knowledge in the Research & Consulting space. My experienced team, all my students, have been the ones executing while I provide the direction, remove the hurdles where they get stuck, and review. It is a brilliant exercise, as teaching the different aspects of Finance lets me address all queries spontaneously, and working with real-time projects, helps me teach better.

Through this series, I’ll share a few tips with all of you every month to help you put your knowledge to use in the real world.

Lesson 03

In our previous lesson, we explored essential steps in market research that paved the way for informed decision-making. In this one, we shall talk about financial modeling.

As financial professionals, we understand the importance of financial modeling in strategic decision- making and forecasting. We have assisted several start-ups and companies in preparing their financial models. Today, I wanted to share some key insights that we have gained through our experience. Let's dive in!

• Understand the Purpose: Define the purpose of the financial model upfront to establish a strong foundation. Whether evaluating investments, projecting cash flows, or assessing project viability, a clear objective is essential for a successful model.
• Keep it Simple: While financial models can be complex, striving for simplicity is essential. The focus should be on creating a clean, easy-to-understand structure with clear labels and documentation for inputs, calculations, and outputs.
• Assumptions: Garbage in, garbage out! Every financial model relies on assumptions. Accurate and reliable data is the backbone of any financial model. High-quality data from reputable sources must be validated and cross-checked to minimize errors and inconsistencies.
• Flexibility: Models should be flexible to accommodate changes in business dynamics. Incorporate dynamic inputs and formulas that allow easy adjustments, such as growth rates, inflation, or market conditions.
• Presentation: Effective financial model presentation is crucial for conveying insights to stakeholders. Use graphs, charts, and concise summaries to present key findings. This ensures a better understanding and facilitates decision-making.

Will keep sharing, and until next time, read, learn, and be truly happy!

Invest in Yourself

Aswini Bajaj