Business planning and financial modeling for microfinance insti phần 1 ppsx

THE CONSULTATIVE GROUP TO ASSIST THE POOREST [A MICROFINANCE PROGRAM] Business Planning and Financial Modeling for Microfinance Institutions A Handbook Tony Sheldon Charles Waterfield Technical Tool Series No. 2 November 1998 [...]... America), and Women’s World Banking (United States) xiii xiv BUSINESS PLANNING AND FINANCIAL MODELING FOR MICROFINANCE INSTITUTIONS: A HANDBOOK The handbook’s structure Business planning for microfinance institutions can be understood as two closely related processes: strategic planning and operational planning Strategic planning articulates broad institutional goals, assesses the institution’s performance,... Association for Social Advancement (ASA), Bangladesh 10 BUSINESS PLANNING AND FINANCIAL MODELING FOR MICROFINANCE INSTITUTIONS: A HANDBOOK resource for members, or achieving significant outreach and financial selfsufficiency.) A microfinance institution’s mission and goals underlie and inform all the activities that it undertakes and serve as a source of motivation for the institution’s board and staff... for a microfinance institution Part 1 briefly describes the steps of strategic planning: • Articulating the mission and goals • Defining markets and clients • Analyzing the environment 1 2 BUSINESS PLANNING AND FINANCIAL MODELING FOR MICROFINANCE INSTITUTIONS: A HANDBOOK • Performing an institutional assessment • Developing a strategy for expansion that focuses on maximizing outreach and profitability... Note: The vertical flow of the figure reflects the sequence of the planning process, with strategic planning preceding the other processes, and operational planning and financial modeling pursued in tandem The horizontal flow reflects links between key topics 4 BUSINESS PLANNING AND FINANCIAL MODELING FOR MICROFINANCE INSTITUTIONS: A HANDBOOK chapter 2; the main elements of its operational plan are... planning from the perspective of developing detailed financial projections Step-by-step projections are created from case study data using the Microfin model, an Excel-based financial modeling tool developed expressly for microfinance institutions The steps in operational planning and financial modeling include: • Defining financial products and services • Specifying marketing channels • Planning institutional... first was Management Information Systems for Microfinance Institutions: A Handbook Future publications in the series will include a handbook on audits of microfinance institutions and a handbook on measuring and managing delinquency in microfinance institutions Ira Lieberman November 19 98 Chief Executive Officer Consultative Group to Assist the Poorest Acknowledgments This handbook was financed by... phases of business planning: it synthesizes the information developed in strategic planning and outlines objectives and activities for implementation (figure 1. 1) Whether the strategy is achievable is determined in operational planning, where the institution maps out the proposed strategy in each area of implementation The analysis of markets and clients indicates what products and services to offer and. .. well-thought-out financial projections strengthens a microfinance institution’s negotiating position with donors, commercial banks, and other funders The business plan can also be used to provide information to other external audiences, such as shareholders, clients, and regulatory authorities 1. 1 How the handbook is structured This handbook takes readers through the process of developing a business plan for a microfinance. .. flexible model that allows instituxi xii BUSINESS PLANNING AND FINANCIAL MODELING FOR MICROFINANCE INSTITUTIONS: A HANDBOOK tions to prepare sophisticated five-year financial projections New institutions may initially prefer to use a less complex model, turning to Microfin once they have more experience and want a more powerful projection tool When piloting the handbook and projection model, we realized that... handbook also includes several annexes with further information on the Microfin model These explain how to install the software, present printouts from the model, list data requirements, and provide an exercise on modeling lending activity CHAPTER 1 Introduction Business planning for microfinance institutions can be understood as two closely related processes: strategic planning and operational planning . happening? 15 5 Figures 1. 1 The flow of strategic and operational planning 3 2 .1 Product-market matrix 17 3 .1 Structure of the model 33 viii BUSINESS PLANNING AND FINANCIAL MODELING FOR MICROFINANCE INSTITUTIONS:. Microfin 12 6 7.3 Allocation of resources in Microfin, with sufficient and insufficient funding 13 1 8 .1 Performance indicators 14 4 xBUSINESS PLANNING AND FINANCIAL MODELING FOR MICROFINANCE INSTITUTIONS:. America), and Women’s World Banking (United States). xiv BUSINESS PLANNING AND FINANCIAL MODELING FOR MICROFINANCE INSTITUTIONS: A HANDBOOK The handbook’s structure Business planning for microfinance