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Scour Limited operates as a commercial cleaning company but how does it make its profit and cash?

Until 2017, it operated via its established "Owned" operations. In 2018 it took the decision to expand via Franchises.

The growth of the Franchise segment is an important theme for this Case Study. From 4 franchisees for 6 months during 2018, this has now grown to 15 franchisees at the start of the 2020 financial year.

You need to understand how the 11 additional franchisees added during 2019 will impact the 2020 results and what will happen should further franchises open during 2020. In fact you may be surprised as to how sensitive the financial model is to changes in the number of franchisees.

You can't forget the traditional business and would you be able to explain how its much just by understanding the KPIs in the business? What would happen if Thom put it's prices up? What would happen if customer retention rates fell?

Our model helps you understand some of these questions and it's free to download. Try it out and have a go at predicted what the management accounts for 2020 will look like.

In our next blog we will consider the strategic opportunities available to Scour's Board of Directors.

If you like our blog or find the model useful, then let your colleagues know!!

https://www.passintraining.com/courses/scour-s-financial-model