10 mistakes that will lead to ruin

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A financial model is a tool for analyzing business efficiency and forecasting its results and risks. An incorrectly compiled model can, at best, lead to an incorrect assessment of the company, and, at worst, to ruin. Irina Remneva, financial director of Neskuchnye Finansy, told us about the mistakes to avoid when compiling a financial model.

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Content:

Model without regulation of dividend withdrawal
Ignoring the market situation
Lack of seasonality considerations
Model without business capacity analysis
Irrational scaling
Turning a blind eye to debt overload
Detailing without natural indicators
Non-normal distribution model
"Fitting" the numbers
Calculating all sales channels at once


Model without regulation of dividend withdrawal
A situation in which you withdraw dividends luxembourg whatsapp phone number unconsciously and in uncontrolled quantities will sooner or later lead to ruin. With this approach, loans for salaries and an acute shortage of finance appear, and the desire to reach the top of the market is simply not feasible. Therefore, it is worth describing in the model in what quantities dividends can and should be withdrawn. This can be done if two conditions are met: the company has net profit and money in the account. It often happens that there is a profit, but it cannot be withdrawn or the accounts are empty.

Example of calculating dividend withdrawal