Product Viability Model V2

£75.50

 

 

The Product Viability Model (PVM) has been meticulously designed  to offer a thorough financial perspective of new and existing products, ensuring businesses have a well-rounded view of their product’s potential performance before expensive mistakes are made. It goes without saying, that understanding the financial prospects and commercial viability of a new / existing product is paramount to the making of compelling arguments and key strategic decisions. So with this model and with relative ease, comprehensive financial plans can be created, sensitivities analysed and subsequent business rationale made with absolute confidence.

 

  • Easy to use professional Product Viability Modelling
  • Easy data entry – Direct or linked with your own data sheets or other business models
  • Comprehensive Discounted Cashflow analysis – comprehensive professional financial planning
  • Dependable, Confidential and Secure files – Username, Password and secure online verification
  • Business model design architecture enables easy alignment to your company / business with relative ease
  • Fully variable +/- plan sensitivity controls – drives interactive multidisciplinary discussion
  • Full Discounted Cashflow analysis and two ‘Sensitivity’ plans – Baseline and 2 delta ‘case’ scenarios
  • Automatically generates 10 key financial ratios (Baseline and Scenarios) – can be used directly as plan objectives / KPI’s
  • The ability to run unlimited ‘what if scenarios’ during a live presentation – Robust strategic analysis at its best
  • Compelling financial results generated in real time – perfect for business plans
  • Professional Product LifeCycle Management – Strategic proactive alignment

 

The Product Viability Model, with its multi-faceted and robust structure, offers businesses a granular view of their product’s financial potential. By examining both fixed and variable costs, revenue streams, and performing an in-depth sensitivity analysis, businesses are well-equipped to make informed decisions about product launches, investments, and market strategies. The Product Viability Model has been  developed with every attention to detail and if further reassurance is needed, it has been fully ‘real world’ tested by our long standing clients.

 

Professional business modelling for ‘Strategic Thinkers, Innovators and Direction Setters’.

 

 

SKU: product-viability-model-ver-2 Category:

Description

The Product Viability Model – is delivered as a ‘compiled’ self-extracting file (.exe) and, once installed, will be available via the Windows Start Menu. Strict version control will be implemented across the model set, with changes and updates (history) appropriately documented.

The main template file will run VBA / Macros – a valid digital certificate has been used to ensure authenticity and security. It should also be noted that the compiled ‘self-extracting file set’ (.exe) has a digital certificate and is recognised as safe by the Microsoft operating system.

Introduction to the Product Viability Model

In the modern business landscape, understanding the financial prospects and viability of a product is paramount to successful market entry and sustainability. The Product Viability Model (PVM) has been tailored to offer a thorough financial perspective, ensuring businesses have a well-rounded view of their product’s potential performance. This guide provides a succinct introduction to the PVM’s structure and functionalities.


Model Architecture:


Sales Channels: The model inherently bifurcates sales into two channels:

Direct Sales and Indirect Sales

Here, you’ll input the forecasted number of products to be sold against the market potential, culminating in the total projected revenue.

Manufacturing and Cost of Sales: This section addresses the following costs:

Manufacturing Costs

Direct Cost of Sales

Indirect Cost of Sales

The resultant at this point is the total revenue minus variable cost of sales, provides the Gross Margin (GM).

Fixed Costs: Fixed costs in the model are further segmented into:

Development Costs (inclusive of Capital Expenditure)

Direct SG&A Costs

Indirect SG&A Costs The summation of these provides the Total SG&A Costs.

Working Capital Analysis: This includes an assessment of:

Creditors

Debtors

Inventory Costs

Project Summary: At this juncture, the model gives a clear snapshot of:

GM1: Revenue minus Manufacturing Costs

GM2: GM1 minus Cost of Sales (COGS)

Net Profit: GM2 minus Total SG&A

Financial Projections:

A holistic summary sheet provides insights into Net Present Value (NPV) and projects discounted cash flows. Cumulative discounted cash flow, standalone cash flow, and profit are also graphed for visual understanding.

Sensitivity Analysis:

Beyond the foundational calculations, the PVM delves deep into sensitivity analysis. Twelve plan variables are tested under best and worst-case scenarios. This rigorous assessment aims to pinpoint the most financially volatile components of the plan.

Resultant Overview:

Comprehensive results are laid out for:

The Baseline Plan

Sensitivity Scenario 1

Sensitivity Scenario 2

Conclusion:

The Product Viability Model, with its multi-faceted and robust structure, offers businesses a granular view of their product’s financial potential. By examining both fixed and variable costs, revenue streams, and performing an in-depth sensitivity analysis, businesses are well-equipped to make informed decisions about product launches, investments, and market strategies. This model serves as an indispensable tool for businesses aiming for strategic and financial acumen in the ever-evolving market landscape.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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