Using Microfin 3 A Handbook for Operational Planning and Financial Modeling
Lunde, S. A.
Publication Date: Sep 2001
Published by: Consultative Group to Assist the Poor (CGAP)
Document Type: Toolkit (PDF)
How is a business plan constructed and developed into an ongoing strategy?
*NOTE: Using Microfin 3.0 A Handbook for Operational Planning and Financial Modeling is the updated version of this handbook. The new handbook provides detailed guidance on using version 3 of Microfin, the latest version of the Excel-based financial modeling tool specifically designed for microfinance institutions.
Business planning is an essential management function, and detailed financial projections are crucial elements of any well-crafted business plan. Such projections support both strategic and operational planning processes and help to demonstrate the viability of the resulting business plan
Using Microfin 3.0 provides detailed guidance on using version 3 of Microfin, a powerful set of Excel-based business-modeling worksheets designed to develop five-year financial projections for microfinance institutions. It also provides an overall framework and general background information for strategic and operational planning
The handbook, as well as the Microfin model itself, are structured according to a best-practice planning approach that is appropriate for most microfinance institutions. This approach concentrates on four key areas of an institution?s operations:
- Products and services;
- Marketing channels and projections of activity;
- Institutional resources and capacity;
- Financing.
Throughout the handbook, you will find case study sections with examples and detailed data from the business plan of a fictitious microfinance institution, the Freedonia Enterprise Development Association (FEDA). You can enter FEDA's data into Microfin to create a practice model, which will allow you to experiment with Microfin and develop a more thorough understanding of its capabilities and operations
When you are ready to create your own projections, Using Microfin 3.0 provides detailed guidance for completing the entries on each of Microfin's worksheets and for reviewing its detailed financial projections including financial statements, graphs, reports, and ratios and indicators. The handbook also includes a brief discussion on using your financial projections as ongoing management tools for example, for sensitivity analysis or variance analysis
Using Microfin 3.0 replaces the Business Planning and Financial Modeling for Microfinance Institutions handbook [1998], reflecting the major enhancements implemented in Microfin version 3.
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