e-commerce Channel Financial Forecast

 

THE SERVICES

• Financial Forecasting
• Provision of subject matter expertise and consulting services in the ecommerce, retail and finance space

THE APPLICATIONS 

• Google Analytics
• Clients data source
• Microsoft Excel
• Demandware
• Other 3rd party apps - data source

 

THE BUSINESS

M.J. Bale is a 100% Australian-owned and operated menswear company. Headquartered in Sydney, the brand has more than 50 locations (including MYER concessions) distributed nationally throughout the major capital cities of Sydney, Melbourne, Brisbane, Perth, Adelaide and Canberra, as well as in Auckland, New Zealand. In addition, M.J. Bale has a robust online e-commerce store, distributing nationally and internationally.

The Objectives

MJ Bale employed the services of it works to help develop a robust and detailed 3 year financial profit and loss forecast for their online business. The aim of creating the detailed financial forecast was to 1) identify the revenue potential for the online channel over 3 years at a much lower level of detail than had previously been done 2) to assist with determining the level of investment required to realise that potential and 3) to carve out a tangible plan/roadmap that could be used to drive business activities over the course of 3 years.

Utilising our extensive industry knowledge and insights, our internal SME’s in both e-commerce and financial accounting were able to produce a ‘new and improved view’ for the online channel allowing MJ Bale to be more confident and assured on their path towards achieving their online channel growth aspirations.

The expertise provided by it works:

  • e-commerce industry expertise and knowledge by our consultants to provide accurate input into the assumptions that build up the model

  • Our internal CFO builds the model from the ground up ensuring the model is robust

  • Workshops with the MJ Bale executive to identify the various scenarios and strategic initiatives that were desired to be a part of the 3 year growth plan

  • Workshops with Stakeholders to garner data for input into the model for historical data purposes - this builds the base line

The Outcome

In under 4 weeks, our team of consultants in conjunction with MJ Bales executive team, were able to deliver a comprehensive and detailed 3 year profit and loss plan. Like any model worth their weight in gold, the financial forecast allowed for real time updates and the ability to review ‘what if scenarios’ as the external and internal environments change. The delivery included:

  • Forecasts for successive years informed by the baseline model

  • A multi-worksheet Excel Workbook that contains the baseline model with detail to a month on month level of granularity for 36 months

  • The model can be exploded out for full month on month analysis or imploded to provide aggregated annual figures depending on the audience

  • This model can then be readily manipulated to provide future forecasts that are inclusive of all additional costs associated with growth

  • Full set of documentation outlining assumptions, rules, and other workings included in the forecast

  • A presentation to the board that accompanies the model with Summary Results, Observations and Recommendations