Scenario modelling lets you answer 'what if' questions: What if we hire three more staff? What if we drop pricing 10%? What if we buy new equipment? Instead of guessing, we build a financial model that shows the impact on profit, cash flow, and your break-even point. This lets you make confident decisions based on projected outcomes.
The Challenge
You want to hire but aren't sure if the business can afford it at your current growth rate
You're considering a capital investment but don't know what revenue you need to justify it
You're thinking about entering a new market but can't quantify the financial impact
You've changed pricing and want to understand the profit impact
You want to expand to a new location but don't know if it's financially viable
What's Included
Interactive model showing income statement, cash flow, and key metrics under your scenarios. You can change assumptions and see immediate impact.
Side-by-side comparison of different options (e.g., 2 new hires vs. 3 new hires) showing profit, cash, and payback for each.
Analysis showing which assumptions have biggest impact on outcome. Helps you focus on what matters most.
For investments, we calculate when you'll recover the capital and what daily/monthly sales/usage is needed to break even.
Model updated quarterly with actual results so projections are refined as year progresses.
Why It Matters
Most business decisions are made with incomplete information. Should we hire? Should we invest in new equipment? Should we enter a new market? The answer always seems to be 'it depends'—but on what? Scenario modelling makes the dependencies explicit. When you're considering hiring two customer success staff at $70k each, the model shows: 'At your current customer acquisition cost and churn rate, you need to grow the customer base 20% to cover the salary cost while maintaining margin.' Suddenly you know what the decision depends on. For capital investments, modelling shows break-even and payback period. For pricing changes, it quantifies revenue and margin impact. For expansion, it projects profitability. For market decisions, it shows required performance. Good modelling doesn't eliminate risk, but it replaces guessing with grounded projection based on your actual business metrics.
Financial impact of major business decisions quantified
Break-even and payback period calculated for investments
Sensitivity analysis showing which assumptions matter most
Multiple scenarios compared side-by-side
Cash flow impact distinct from profit impact
Confident decision-making based on projections
The Process
Understanding your decision: hiring plan, pricing change, investment, expansion, or other scenario
Extracting historical baseline from your actual results (margins, productivity, customer metrics)
Building a model incorporating your assumptions about the change
Sensitivity analysis showing impact if assumptions vary
Multiple scenarios modelled for comparison
Results presented with clear decision recommendations
Best For
Growth-stage businesses considering significant investments or expansion
Owners evaluating hiring decisions and talent investment
Businesses contemplating pricing or market strategy changes
SMEs seeking to reduce decision-making risk through quantified projections
Complementary Services
Management dashboards visualize your most important financial metrics in real-time. Instead of waiting for monthly reports to see how you're performing, you have live visibility into cash position, revenue, costs, customer metrics, and any KPIs that matter for your business. Dashboards are customized to your strategy so you see what drives success.
Major business decisions have financial implications that are often underestimated. We provide expert financial analysis supporting key decisions: should you hire? Can you afford to? What about expansion? What's the acquisition cost? We quantify impact and help you make confident decisions.
FAQ
Good models are based on your actual historical data, not guesses. We use your margins, productivity, customer acquisition costs, and other real metrics as the foundation. The scenario is the change you're testing. As long as your assumptions about that change are reasonable, the model is reliable.
We build seasonality and volatility into the model using your historical pattern. This makes projections more realistic and shows whether the decision still makes sense under various conditions.
Yes. We calculate when an investment (new equipment, vehicle, expansion, technology) generates enough cash flow to pay for itself. This includes tax implications and opportunity cost.
We model the revenue needed to support additional payroll (at your current margins). This shows whether hiring is viable given your pipeline and growth forecast.
We update assumptions based on actual results and re-run the model. This refines projections as the year progresses and allows you to adjust decisions based on new information.
Can't find the answer you're looking for? Get in touch
We can help you implement scenario modelling and start seeing results. Book a consultation to discuss your specific needs and explore how this service can transform your business.