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Investment Model for Accelerated Growth
Enhancing Investment Model for Improved Planning and Reduced Risk
2023-04-17
Client
Leading Co-working Space Provider
Services
Investment model development Data analysis Financial planning
Industries
Co-working spaces Real Estate Facility Management
The problem
The client aimed to continue its growth journey by financing new expansions with its own cash flow and investment grants, without relying on external capital. However, their existing investment model was underdeveloped, lacking insights on the time it takes to become cash flow positive. Additionally, it was difficult for them to draw lessons from previous establishments and ongoing operations. These shortcomings hindered decision-making, continous learning and planning for new expansions.
Our approach
We implemented a seven-step approach to address the client's needs by fostering close collaboration, embracing a holistic perspective, acquiring an in-depth understanding of their business, and working iteratively with the client on the development of the new model:
Evaluation of the current model: Assessing the existing model and conducting process and system investigations.
Data Collection: Gathering information on historical investments, evaluating data quality, and conducting stakeholder interviews for input.
Building Phase: Developing an Excel-based investment model, matching it with the client's financial terminology and structure, and evaluating potential additional features.
Testing and Adjustments: Testing the model, gathering feedback from the client, and making necessary adjustments for optimal quality.
Investment Evaluation: Assessing past investments in three projects.
Recommendations: Defining recommendations for investments and model development.
Training and Handover: Presenting results and next steps, as well as training and handing over the model to the client.
Our impact
The new investment model successfully addressed the client's requirements, allowing for better decision-making, planning, and risk management for their new expansion projects. It enabled budgeting and monitoring of investment costs, revenues, and cash flows for operational activities, while increasing comparability between establishment projects and ongoing operations. Furthermore, the model facilitated learning from previous investments, following a user-friendly, flexible, and easy-to-maintain design.
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