A financial plan for a luxurious business club
As we often say, we transform your ideas into business plans. We tailor financial models according to the specifics of each project. Our portfolio consists of projects in production, trade, services, software, and many other sectors.
With Project Posh, an experienced investor in the restaurant and club management sphere contacted xFigureFinance with a request to develop the financials and create a business plan.
In this case, the xFigureFinance team worked with the client to go through our time-proven process and turn the idea into figures. Here is how it happened:
In the beginning, we always listen actively, ask key questions and analyze the business model.
With POSH, the business concept was to create a space for business meetings with an area for food, drinks and cocktails and a private business club. In order to stand out in the market, the client had already talked to several international brands and received initial approval.
Just after the analysis of the initial concept, together with the client we move to action, describe and calculate the investment amount.
In our case the client planned to use a rented room. That is why we valued the repairs, the design, equipment and all other investments needed before the opening of the club. In addition, it was crucial to add a list of selected providers and a method of payment by month, for clarity of cashflows.
Here we already step into deep waters.
Market and customer research and forecasting is the most important part of the financial model. We rank the entire business by revenue and in this part the client’s expertise and knowledge of the sector are extremely important. Because we, XFigureFinance, go through the basic assumptions step by step together to build a realistic revenue forecast.
A business club with a forecast
Forecasting in such detail, we really showed the client what to strive for at any time during the development of the project so that it is financially sustainable.
Revenues from the restaurant
with a menu option by main categories; an exemplary client cart, a business forecast, and an estimate of the number of clients per each period of the day, week, and month.
Forecasting in such detail, we really showed the client what to strive for at any time during the development of the Project so that it is financially sustainable.
The way of financing planning is long but as we say often
”It is better to sweat in planning than to fail in realization”.
Therefore although we develop one scenario we always add two additional scenarios testing different development options.
And once we combine what we have done so far and add key details, it is time to put the whole picture together, make a financial analysis and to explore the key risks and assumptions.
For each project the xFigureFinance team developes individual indicators and benchmarks according to the sector atd the specifics of the Project.
For POSH, these were number of clients buy day and hour of the week, the average amount of client’s bill, capacity utilization, average client service cost and many other.
We immediately developed the results with analyzes and graphs, to see which are the drivers, where are the biggest risks and where entrepreneurs should focus on for success.
We can confidently say that there is no a stage of the financial modelling process that is insignificant and/or does not lead to key conclusions and awareness. And in this step we completed the puzzle with a detailed forecast of raw materials costs, cost of goods, personnel, marketing and other operating costs.
For POSH we have developed a detailed cost forecast for the planned sales by food and beverage categories. In addition to detailed estimates of operating costs such as rent, overhead, marketing and others, we have developed a detailed plan for hiring of staff.
It may come as no surprise to any entrepreneur in this sector that the key to adequate cost management focuses on two areas: cost of goods sold and staff. Therefore, it was extremely important for us at the Idea stage to analyze the staff costs, as well as to clearly determine the level of fixed costs of the Project.
After all, our financial model has become a flexible tool for implementation of Project Posh.
If we were to allow you to take a look behind the curtains for Project POSH, you would see the xFigureFinance team and the client in long 3-4 hour meetings, discussing various opportunities and risks. After all, our financial model has become a flexible tool for implementation of Project Posh.
In addition, we proceeded the research by determining the required amount of funding and the most appropriate sort of instrument for POSH. Here’s where you can learn more about how we bring value when it comes to financing.
Our shared successes
“Working with xFigure helped us make a strategically important investment decision. The analysis of the team showed us clearly what the key risks are and how to structure the deal. Our partnership with xFigure is valuable for us because they build on our expectations and give us confidence with a multispectral view of each project.”
Todor Dimitrov
Sofiiska banica
“xFigure performed a complete analysis of the company and the industry in which our business is conducted, arriving at a valuation that was key to a subsequent completed transaction with DHH for the purchase of a 60% interest in the company. The outstanding commitment and results presented were highly appreciated by DHH, as a result of which Ms. Chopeva was invited to join the Board of Directors for a long-term partnership.”
Svetoslav Hristov
Evolink SA
“We turned to xFigureFinance to develop a model for analysis of the cashflows and profits of our business. This allowed us to identify and expand the most profitable activities very clearly, as well as to optimize expenses that do not bring the desired result. This project has become a long-term partnership and we have been working with the team for two years now. xFigureFinance are able to listen, analyze and ask the right questions and are invaluable partner in our business and in validation of our new investments.”
Boris Sekulski
Endeavour Constructions
“In the xFigure team we met true partners who stood firmly behind us and together we went through the long process of attracting an investor to support the growth of euShipments.com. The team worked hard, dedicated and we were able to make important strategic decisions as well as raise EUR 7.5 million from investment funds in the country.”
CEO, euShipments.com
“We are extremely happy to have another member join APSTE – Association for Production, Storage and Trading of Electricity – xFigureFinance!
We believe that with your expertise and experience we will be able to work towards best practices in financial structuring and modelling of renewable energy investments.”
Mariyana Yaneva
APSTE
“xFigure helped me to make a decision whether to develop a large photovoltaic project and how to approach it. Even at the Idea stage, I was able to answer key questions related to the productivity and return of the project on the local market. The team’s knowledge of financing opportunities and conditions and the preparation of information for banks and investors was extremely useful.”
Bozhidar Draganov
BODD Solar
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