The Money Blog

Your success is our success. Our UFO platform and blog posts are designed to help you see opportunities, make smarter business decisions and overall improve your financial outlook.

Why do I need a dynamic, integrated financial model?

Jan 09, 2023

People will often suggest that since their future is so hard to predict, working on a dynamic, integrated reporting & forecast tool may be a waste of time & resources for their company. We would like to offer the following compelling counter arguments:

  1. CASH IS KING. Precisely because cash is king and the future so hard to predict, a business needs the best visibility and tools they can get, to de-risk their operations. Our tool allows you to financially adjust quickly - with precision - to any ups and downs thrown your way.
  2. THIS IS YOUR EARLY CRYSTAL BALL INTO THE FUTURE. It is never too early to sharpen one’s financial acumen. For example, who does not need to learn how to make a financially informed decision before locking in prices and terms? You may find out that people who have more financial acumen than you can easily run circles around you in negotiations. Additionally, one has little chance to hit a target that has not been articulated; compare this to working towards achieving a target upon which one can progressively recalibrate.
  3. THIS IS NOT AS EXPENSIVE AS YOU THINK. Thanks to the technological advances of recent years, and a growing ecosystem of pioneers like UFO and many other Fintech companies, it is increasingly affordable to acquire the minimum vital knowledge & support in this area, so … no excuses! Finance is a technical subject that can - and should, in our opinion - be learned by everyone.
  4. NEGLECTING THIS IS THE EQUIVALENT OF FAILING TO SEE THE IMPORTANCE OF THE O-RING. Last, it is a reality that the Finance function in a business is comparable to the O-ring of the shuttle in the tragic late 80’s crash. If the shuttle had not taken off, nobody would care if the O-ring had failed. While it is true that having Financial acumen is not a crutch for having poor products, poor market fit, or a ragingly dysfunctional team, and while we are not recommending spending any time or resources on building a strong precise financial model when your team does not have (yet) a clue about their business model or about how to work together - as soon as you feel traction, as soon as your organization starts growing, as soon as you have any amount of money in the bank to spend, please recognize that your finance operations is essential for your business success. As you may be aware, financial dysfunctions grow quickly from simple annoyances to costly hindrances, and typically become impossible to go back and fix once a business has taken off. Therefore, why not dedicate just a little bit of your attention and effort early on to establish the rock solid finance foundations and culture that you know you will need, thus giving you a radical advantage from day one of your journey?

It is our hope that you will find, like many businesses have, that the approach we promote in our rolling forecast is of tremendous support for your operations and for you, as the decision maker, at every turn; and that you will become keen on running scenarios for every decision you face that has a potentially material financial impact on your business … To your success!  

- Brigitte & Mike

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