An organisation's financial model describes how revenues and costs translate into profit, cash flows, financial continuity and enterprise value.
Where the business model describes how the organization creates, protects, develops and delivers value, and the revenue model shows how that value is converted into sustainable income, the financial model provides insight into the resulting financial results.
Within ICR, the financial model does not stand alone, but is part of a wider context. We distinguish four models that build logically on each other:
Organizational Architecture
How do we design the organization so that it can function sustainably?
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Business Model
How do we create, protect, develop and deliver value?
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Revenue Model
How do we convert that value into sustainable revenues?
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Financial Model
How do revenues and costs translate into profit, cash flows, financial continuity and enterprise value?
Together, these four models form a logical chain. A strong Organizational Architecture increases the organization's organizational capacity. This organizational capacity creates the conditions for the sustainable creation, protection, development and delivery of customer value and for converting that value into sustainable income, profit, cash flows, financial continuity and enterprise value.
Organizational Architecture forms the foundation of the business model. She ensures that the business model is not only well designed, but also executable, manageable and scalable.
The business model forms the basis for an appropriate revenue model. The revenue model describes how the created value is converted into sustainable returns. The financial model then shows how revenues and costs translate into profit, cash flows, financial continuity and enterprise value.
The financial model provides insight into the financial consequences of the choices within the business model and revenue model for the organization's profitability, cash flows, financial continuity and business value.
A good financial model supports organizations in:
The financial model is therefore an important tool for strategic decision-making. It helps directors and entrepreneurs not only look at turnover or profit, but also at the financial health and future-proofing of the organization.
It is wise to regularly evaluate the financial model and adjust it where necessary. If market conditions, investment needs, financing structures or growth expectations change, the financial model must also be adapted accordingly, so that the organization remains financially healthy and future-proof.
The ICR Growth & Success SaaS Platform helps people and organizations find balance and peace, through controlled and manageable growth, with the aim of a healthy and sustainably successful organization. We do this through the all-encompassing ICR Cycle.
Being inControl in this process from ambition to result is crucial. Within the ICR Cycle, inControl actually means controlled and manageable growth. The dashboard gives you insight into the current status. In the video below you can see how the dashboard transforms from the moment you start using ICR.
With our 4 ICR subscription options, you can decide for yourself when to fully engage with the entire ICR Cycle. Choose our successful approach and start your process 'from ambition to result' with the more than affordable ICR Ambition Refresher subscription.
The ICR Growth & Success SaaS Platform addresses a wide range of business needs, making it a versatile tool for organizations striving for sustainable success. Below is an overview of its general applications, along with the added value it provides for businesses and organizations.
Learn more about the general applications of the ICR Growth & Success SaaS platform.
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Sharing knowledge, experiences and network with like-minded individuals. Because we all want to be sustainably successful!
