BALTEK, INC.

Your projections of sales, profit, NPV, IRR, break even point and similar alone,  which you put together to raise money for your project, get a loan or make a presentation, may not achieve the expected results.

What you are presenting to investors, your boss or yourself, is little more than information based on guesswork. Your figures may be the product of experience, historical data, expectations and similar, however, they do not tell the certainty of them occurring, and that is what all is about. Your stunning world-class presentation or business plan (which we can of course write for you), full of eye-catching charts and other high-voltage visuals, coupled to great looking text and spread sheets showing attractive results is very good, and you will need it. However, the results presented (read profit, NPV, IRR, break even point, etc.) are little more than very well presented guesses.

 

Suppose you are then asked by a potential investor or banker, how likely is for the results being presented to occur? You will counter explaining that, as stated in the presentation, you have a worst, a likely and a best case scenario. The potential investor asking may not be satisfied. He is going to decide whether to invest money, based on the figures of the most likely scenario, and he needs to know, how certain is for this outcome to happen, that is, that your project will at least make a profit equal, or in excess of the amount shown in your most likely case scenario?. At this point, you may not have any more answers, and that could seriously impair your chances of raising money. 

It is not easy to elaborate credible financial projections, because there are no “bullet proof” fundamentals you can rely on to convince your banker or investors, that the projections are reasonable and accurate. They, on the other hand, need to make an informed decision, either to invest or grant a loan, looking forward to make money or expecting that you will be able to repay the principal and interest. If your financial projections are not credible, you will get neither the investment, nor the loan.

Also remember, that in the case of Venture Capital, your company will be valued according to the expected profits, so your projections will be carefully and thoroughly scrutinized. They don’t want to make the same errors prevalent during the dot com “bubble”……

When an investor or a banker must make a decision to invest money or approve a loan, they have to be reasonably convinced that the projections will come to fruition. More than that, they will have to present to the bank loan or venture capital committee the reasons why he or she believes the loan should be approved or the investment made. Remember that most likely they are not experts in your industry. That is why he needs as much information and arguments to make an informed decision as possible, and that is why you must provide it, well beyond “gut feel” numbers in the form of average projection or likely case scenarios

We can write for you a professional business plan, create projections, perform market research studies among other, and we will then take this data one step further and evaluate its reliability by performing a risk analysis, which will estimate the certitude of the results of interest occurring, under various confidence levels, .