Creating a financial model for your business or potential investments is vital if you want to see the profitability and financial feasibility of both. Ensuring that the business won’t go insolvent or the investment being faulty and not worthy, the need for a financial model is definitely high.
There are three choices you can do to acquire a financial model. First you make it yourself and spend a lot of time creating from scratch with a lot of research and calculation for all the projections. Second would be hiring a professional financial modeler to create a financial model for you but this will mostly cost you high fees depending on the modeler you hired. And lastly, which is the easiest and will cost you for a fixed small amount, is to download Excel financial templates or simply financial model templates in Excel.
The third one is the most ideal choice, as for why? The reasons are the following:
• Trust – Handing over your business financials to others can be an issue regarding trust. It is much better to do it yourself plus this will also teach you and learn more about your business operations or the investment’s returns.
• Financial Modeling know how – You don’t have to be an expert in Financial Modeling as for the template will provide the components in a financial model, included with charts and visuals for a better presentation of the business’s or investment’s standing. These templates are also made by experts in financial modeling and you don’t have to pay them for their services, for you only need to get the Excel financial model template for you to edit.
• Automatic Calculator – What’s better than an automatic calculator doing all the manual calculating you would have done without the template?
• Easy to Edit – Together with the excel spreadsheets, there will be instructions given for you to easily and smoothly edit.
• Less Cost and Reusable – This is the best reason. You can reuse the template for whenever you need an Excel financial model and you don’t have to pay again nor hire an expert.
What more is there to add? It is obvious that downloading an Excel Financial Model Template is a much better choice and a steal compared to the other two. Of course, it is even much better if you can save as much time as you can especially for business executives. However, the opinions of financial modeling experts are still very valuable to ensure that the financial model you built is working as it should be.
Feel free to visit eFinancialModels, a platform which offers not only industry-specific financial model templates for different use cases and business models but also offers financial modeling services to assist you with your financial modeling tasks.