Understand Your Business Before You Risk Your Money™
Click any industry above to get started (suggest an industry via Contact Us).
Cash-Flow-Model.com helps entrepreneurs, business owners, operators, investors, and lenders understand what may happen financially when they buy, start, finance, operate, improve, or expand a business.
A good business opportunity can still become a bad investment if the numbers do not work.
Revenue may grow slower than expected. Expenses may increase. New employees may be needed sooner. Equipment may cost more. Debt payments may become difficult. Growth itself may require additional cash.
That is why Cash Flow Model was built.
Before committing money, users can build a financial model around the business they are considering and ask some very practical questions:
How much money will I really need?
When will the business begin generating enough cash to support itself?
What happens if sales are lower than expected?
What happens if expenses are higher
How much debt can the business reasonably carry?
What happens if I hire sooner, expand faster, or delay an investment?
How much cash will remain in the bank?
Does the opportunity still make financial sense if my assumptions change?
Should I pass on the deal?
More Than a Financial Forecast
Cash-Flow-Model.com (CFM) is more than a traditional financial forecast, cash flow projection, budget model, or business forecast.
It is a GAAP-compliant, integrated, cash flow and financial modeling platform that connects the assumptions behind a business to the financial results those assumptions may produce over an 84-month period.
Users enter the things that actually drive the business — revenue, expenses, employees, assets, financing, growth, and other operating assumptions — and CFM brings them together in one financial model.
Change an assumption and immediately evaluate what happens: Increase revenue. Reduce growth. Add employees. Change operating costs. Purchase equipment. Borrow money. Change the interest rate. Delay an expansion.
CFM recalculates the financial consequences so different possibilities can be evaluated before the decision is made.
Limitless What-If Analysis
No business develops exactly as expected. That is why what-if analysis and the overall scenario analysis are central to Cash-Flow-Model.com.
Instead of relying upon a single financial projection, users can test different assumptions and compare the results on the spot — just click a button to generate the result.
What if revenue is 20% lower?
Should I expand? Buy that competitor?
What if I need another $500,000?
What if I finance the equipment instead of paying cash?
What if I hire six months later?
What if growth happens faster than expected?
There is no single “correct” scenario. The purpose is to understand the financial consequences of different decisions while there is still time to make them.
See How the Pieces Work Together
Business decisions rarely affect just one number.
Borrowing money increases available cash but also creates debt payments and interest expense. Hiring may support growth but increases payroll. Buying equipment uses cash or requires financing. Faster growth can increase revenue while also increasing working-capital requirements and operating expenses.
Cash-Flow-Model.com connects those relationships through integrated business planning, financial planning, funding analysis, and financial modeling.
Users can evaluate:
acquisitions and startups,
revenue and growth assumptions,
operating expenses,
employees and payroll,
equipment and other assets,
expansion and operational improvements,
debt and other financing structures,
interest expense and repayment requirements,
cash requirements,
business valuation and Max-Bid Value™,
and alternative operating scenarios.
Integrated Financial Statements
The assumptions entered into CFM flow through an integrated financial model that produces GAAP-compliant financial statements and supporting schedules, including (click to view samples):
Depreciation and Amortization
Assumptions
This allows an entrepreneur or business owner to see not only whether a business may be profitable, but also where the money comes from, where it goes, how financing affects the business, and how much cash may remain available over time.
Understand Your Funding Before You Borrow
Financing can change an otherwise good business opportunity.
The Funding Schedule allows users to evaluate different financing structures alongside the business itself, including borrowing requirements, interest expense, repayment schedules, and their month-to-month effect on cash flow.
That makes CFM useful not only for the person operating the business, but also when discussing a financial plan with lenders, investors, or prospective business partners as they all ask the same three questions:
How much do you need?
What is the collateral or security?
When does it get paid back?
Cash-Flow-Model.com gives you those answers in a presentation bankers, lenders, investors, or prospective business partners expect. Moreover, during any negotiation, you can change the financing assumptions and instantly evaluate the results.
Know Your Breakeven. Watch Your Ending Cash Balance.
Two numbers deserve particular attention in almost every business:
Operating Breakeven helps identify how much business activity is needed to cover ongoing operations.
Ending Bank Balance shows how much cash the model expects to remain available each month as the business moves forward.
A company can show a profit on an Income Statement and still run short of cash.
CFM was built to help users see both.
Evaluate the Opportunity Before You Buy
For acquisitions or before you consider buying any asset or business, Cash-Flow-Model.com can also be used with our proprietary Max-Bid Value™ (MBV) Risk Management algorithm to help with due diligence, and establish disciplined acquisition limits before negotiations or competitive bidding begin.
Rather than deciding what an opportunity is worth after becoming emotionally committed to it, users can evaluate the economics first.
Understand the business. Understand the financing. Understand the risk. Then decide.
CURRENT INDUSTRY APPLICATIONS
Cash-Flow-Model.com has been developed and tested across very different types of businesses, including:
Farming
Upstream Oil and Gas Production
Website Development / Digital Platforms
Residential and Commercial Construction
Restaurant & Hospitality
Each industry uses its own operating assumptions, while the underlying financial model connects those assumptions to the same fundamental questions involving revenue, expenses, assets, financing, cash flow, and financial performance.
Additional industries are in the works to be added.