QuantSpring is the preimminent crowd source community and marketplace for data analysis and financial projects.
The QuantSpring marketplace connects businesses, entrepreneurs and financial experts and freelancers across a range of technical and data oriented projects and short-term hires.
The platfrom is designed to allow small and large businesses to attract and connect with talented people across the globe for projects that are normally undertaken by banks and consulting firms. QuantSpring allows businesses and entrepreneurs to tender out their project requirements to a transparent market so that they can access the most appropriate talent on the right economic terms.
QuantSpring specialises in data analysis, business valuations, funds management analysis, financial models, forecasting and budgeting and business planning and strategy.
Using a Valuation Model
This post covers the basics of what is a Financial or Valuation Model and how to use it to value a small business such as a restaurant or distribution business based on forecast cashflows and some simple assumptions. This will be Part 1 or an introduction to be followed by:
Part 2 – Building a Simple Valuation Model Using Forecast Cashflows
Part 3 – Testing Valuation Model Inputs
What is a Financial Model?
Financial Models are useful tools in assessing what you can expect the valuation or future profitability to be for a business based on a series of assumptions, flex those assumptions and then you can see how it affects the value of the business.
A Financial Model is not expected to foolproof or a guaranteed outcome for your business but is very useful for you to understand how to analyse your cashflow and work out what the key drivers are for your business.
How to Get Started with a Business Valuation
The first step in valuing any business or income producing asset is to set out a series of cashflow forecasts either by month of year. You will need to work top down and estimate revenues, gross margin, fixed costs and net profit (EBITDA or Earnings Before Interest, Taxes, Depreciation and Amortisation).
Your model will show the following:
- Revenues (estimate no. of units by average sale value)
- Cost of Sales (I usually include all variable costs such as transaction expenses, COGS, affiliate commissions etc)
- Gross Margin (Revenues less all the cost of sales)
- Overhead or fixed costs (all your other costs)
Estimate all these items for at least 12 months and preferably 2-3 years. These will form the basis of your Operating or Business Model.
Next post will be on How to Build a Basic Financial Model in Excel.
Welcome to QuantSpring…this is our first post of many about financial modelling, data crunching and all things to do with quantitative analysis!
What is QuantSpring?
QuantSpring is a project based marketplace connecting individuals, businesses and organisations that need financial analysis work done for them with financial analysts, modelling gurus, quant analysts and others both on a freelance and contract basis.
QuantSpring is a crowd sourced marketplace for freelance and short or long term financial projects and is suited to companies of all sizes looking to tender out their analytical projects.
How Does the QuantSpring Freelance Market Work?
Quite simply one user creates a project for a piece of work that needs to be completed, this includes a budget, project requirements and objectives.
This project is published on the QuantSpring Financial Projects Marketplace that is available for QuantSpring registered analysts and service providers to place their bids on. These bids are like tenders for your project and you will be able to access a wide range of skills and financial gurus in your country and across the globe.
Once you receive a number of bids or offers to work on your project you can discuss specifics with any of the financial gurus and then choose one to complete your project (or not choose any if they don’t meet your requirements!).
QuantSpring is a platform for all sorts of finance and data professionals and seeks to bring the power of crowd sourcing to businesses and companoes that have not historically been able to tap into the skills and resources of financial analysts, modellers and consultants.
Stay tuned as we bring you more info in 2012!