Download AudioSubscribe on Apple PodcastsSubscribe on Google Podcasts

Welcome to part 2 of our special 2-part series with Michael Hutchens of Modano. In part 1, we looked at the differentiation opportunity for business owners and advisors to business in using financial analysis to drive growth and strategy for the business.

Today we talk a bit more about Michael’s software which enables you to build and maintain a scalable investment banking quality financial model of using Microsoft Excel. We’ll go through a few examples of businesses who have used financial modelling to power their growth. All these and more!

* Speak to a lawyer about an issue you are facing now

* Leave us a message with a legal issue that you want us to cover on the podcast

Episode Highlights:

* A cheaper and effective way to build financial models

* Examples of SMEs who used financial modelling to power growth

* Opportunity for annuity-based revenue streams for accountants

* The problem with plug and play solutions

* It's a risk not doing it

* Investment banking services without the conflict of interest

* How to get started

A cheaper and effective way to build financial models

All the software is, and I say all it is because people get people get scared of it. All it is is a system that enables you to more efficiently use Microsoft Excel to build financial model.

We looked at Wordpress as an example 10 years ago. We built our website using Wordpress without actually hiring an engineer. We looked at modelling and thought why aren't financial models able to be like WordPress. The reality is WordPress is successful because the vast majority who were using it don't actually build the content that makes the website work. So on WordPress if you want to plug in a shopping cart, you can plug in a module that does that. Over the years a whole community of people has built the code that does that and that's why you can build a WordPress website and start such charging somebody from a widget you're selling from your home without really understanding how to write code.

We walk that fine line between giving people a whole lot of information that they can then use to do their modelling more efficiently and effectively, but also automating it. Therefore one of the discussions we always have with people is you still need to know what you're doing when using our system, which is where the training comes in.

To give you a really simple example, in the old days, to build a financial model you'd start with a static template. You got off a mate or your accountant and you type numbers in and work out what was going on. With our system, we've built 10,000 pieces of financial models. An example of a piece is a SaaS revenue projection. Another example might be some depreciation calculation for your fixed assets.

What our system allows you to do is to cherry pick, like Lego pieces, and slot them in. But then even after that, you still need to then know how to customise the model for your business.