Hi Chandoo,
What an amazing resource in the form of chandoo.org! Congratulations!
I have been frequenting your website since a couples of days and I came across one of your articles " Reporting scenarios using offset". So, I decided to use that to create different scenarios for a financial model for two schools and see how different revenue levels impact my IRR.
Now here's the problem.
Unlike in your case, where the revenue is hard-coded for Year 1 and then grows by a constant growth rate, my revenue projections are elaborate and stem from estimated student numbers and tuition fee.
In my case, all student numbers for all classes for each of the ten years forecasted are hard coded numbers. No growth rate has been applied in determining the numbers. This is because in reality student numbers can not grow continuously, as in certian key schooling years such as grade 5, grade and grade 8 many students leave the school. Besides the gorwth rate of new students in the initial years is very high almost 100% in year 1 and 50 % in year 2 and it tapers off towards the end of the years. Hence, a constant growth rate factor can not be applied.
To be able to adjust my student enrolment numbers for all classes (KG1-12) in order to create different economic scenarios, I have to adjust all student enrolment (hard-coded) numbers. Since I don't have "constant growth rates" as an assumption,I don't have a single variable that I can play with. How can I create the scenarios?
I also have to keep in mind that when I adjust the enrolment numbers in optimistic scenarios (say increase the student number by 20%, 30% of the orignial number each year) the adjusted enrolment number does not exceed the capacity of the school in that year. The school is expected to be built in a phased manner over 8 years.
I would really appreciate if you can help me out with this!
Thank you so much.
Sadia
What an amazing resource in the form of chandoo.org! Congratulations!
I have been frequenting your website since a couples of days and I came across one of your articles " Reporting scenarios using offset". So, I decided to use that to create different scenarios for a financial model for two schools and see how different revenue levels impact my IRR.
Now here's the problem.
Unlike in your case, where the revenue is hard-coded for Year 1 and then grows by a constant growth rate, my revenue projections are elaborate and stem from estimated student numbers and tuition fee.
In my case, all student numbers for all classes for each of the ten years forecasted are hard coded numbers. No growth rate has been applied in determining the numbers. This is because in reality student numbers can not grow continuously, as in certian key schooling years such as grade 5, grade and grade 8 many students leave the school. Besides the gorwth rate of new students in the initial years is very high almost 100% in year 1 and 50 % in year 2 and it tapers off towards the end of the years. Hence, a constant growth rate factor can not be applied.
To be able to adjust my student enrolment numbers for all classes (KG1-12) in order to create different economic scenarios, I have to adjust all student enrolment (hard-coded) numbers. Since I don't have "constant growth rates" as an assumption,I don't have a single variable that I can play with. How can I create the scenarios?
I also have to keep in mind that when I adjust the enrolment numbers in optimistic scenarios (say increase the student number by 20%, 30% of the orignial number each year) the adjusted enrolment number does not exceed the capacity of the school in that year. The school is expected to be built in a phased manner over 8 years.
I would really appreciate if you can help me out with this!
Thank you so much.
Sadia
At least to know what is the layout of your report.