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    4 Replies Latest reply on Sep 6, 2013 1:43 PM by Tran Nguyen

    Can someone help me with my Financial Analysis please?

    deviclear Wayfarer
      I am trying to complete the financial analysis for my business plan and as I am not an accountant I am struggling to find answers to my questions. Would someone be able to assist me please? The questions I am trying to answer are as follows:
      Market View
      How would I find out what "Business at year 0" would be for the Target Corporation (over a 5 year period), I.e Business at year 1,2,3 and 4
      The Estimated % Growth (Decline) again for Target (over a 5 year period)
      The Estimated New Product % Growth and
      The Estimated Cannibalization Effect % (both over a 5 year period)
      Any help with my questions will be extremely appreciated.
      Thank you for your time and help with this before hand.
      Kind Regards,
        • Re: Can someone help me with my Financial Analysis please?
          AngelBiz Tracker



          These are not really accounting questions, but rather questions for you understand your target market and product plans. You can look at industry growth and make projections for your business based on your assumptions around the products you plan to sell, marketing effort you put into it. This is not an exact science, so you will need to make some educated guesses to come up with the numbers.


          We do offer services to write business plan and financial analysis. If you are interested in it we can talk more.



          • Re: Can someone help me with my Financial Analysis please?

            Hi Deviclear,


            Writing a good business plan can be nerve wracking. We turned to our accountant for assistance when we wrote ours. She was able to guide us and make the process easier. But this was after we had the basics hammered out.


            Take a look at our Building Your Business Plan

            resource to help you out. The interactive learning module is great!



            • Re: Can someone help me with my Financial Analysis please?
              Tran Nguyen Tracker



              These are not typical accounting questions -- but they do fall into Operational-Cost Accounting Analysis.


              I'll do my best to answer this for you (I get a few of these questions a day).


              1. This is done by projection, market comparison, and industry comparison. The idea is to triangulate your way in using three points of interests to narrow in on a number. In my case, I usually study industry and market comparison first. That will allow me to create a projection (using excel) that gives me an idea of how the company should perform to be "average"


              2. Estimated Percentage of Growth -- this is a bit more difficult. It is both what you see in the trends and what the industry indicate. Essentially, they are interested in knowing if the industry is contracting or growing.


              3. Estimated New Product Growth -- this can vary. If you are introducing a new product completely, then the growth is purely by estimate and comparison. However, if you are (for example, opening a retail store) then your products will be similar. In which case, you are going to need to compare and consider growth by demographic. This either means, what group of people would buy/shop at your place, foot traffic, etc etc


              4. Cannibalization Percentage is not something we hear of often, unless you are doing cost accounting or operational accounting. Cannibalization percentage is essentially, how much sales would you lose if you introduced a second item. For example, if you sell widget from company ABC and company XYZ approaches you with widget as well -- the question then becomes; how much sales would ABC lose if you introduce XYZ. Thus, the way to calculate this is also by comparison, demographic, and above all -- cost accounting.


              Let me know if you need any more help with this.


              I hope this helps!


              Tran Nguyen

              Operational-Cost Accountant