Question

how to do financial analysis report in Marketing project?

Answer 1

Fianancial analysis in marketing project is essential becuase lenders may review it to evaluate for funding.Make this section as complete and strong as possible so you and your lender can trust your fiancial viability.

Sales projection:Weighted Sales projection should be included in your Fiancial analysis report.This means taking 100% of expected sales and spreading the estimates out over 12 months.

Break Even Analysis:Your Analysis must include break even analysis.Estimate hou much you will have to sell to pay back the initial investment.Predict when the project will achieve this mark.This analysis is important from the pointview of lender,because lenders want to know when they can expect repayment.

Fixed Cost:Fiancial author 'Steven Fisher' also recomemends that you include an evaluation of fixed cost in your analysis.These are expenses you incur with or without production;they include items like rent, utilities ,interest payments and other ongoing expenses fo facilities.

Variable Cost:Include Variable costs in your analysis These costs include labour,raw materials and other expenses that rise as production increases.A fair and honest evaluation of these expenses will give marketing project credibility.

Cash Flow:Give details about projected cash flow during the marketing period that is include in marketing project.Identify periods where projects need short term financing and periods where you expect setting aside excess cash.

Loan Activities:In your analysis,show all loans which have been made or expect made in the period described.Also show the repayments against these loans.This will indicate the plan for fiancing and repayment in a responsible manner,based on marketing project success.

Product Viability:Fiancial analysis of the marketing project should include an analysis of product viabilityYou should analyse how the product will make profit and may open up new markets.