Project :- Strategic business planning and projections

Category :- Our Work

Date :- Wednesday, December 31, 2014

We have conducted over 20 business planning exercises for MFIs in India and Afghanistan. These business plans have been used by the MFIs for monitoring their own performance as well as for raising funds.

M2i’s Strategic Business Planning is a three step process. The first step is to perform an institutional assessment on key aspects concerning Governance, Management, Operations and Finances. During the second step, a financial model is developed using key assumptions derived on the basis of consultation with the key people of the organization. In the third step a Business Plan document is developed.

Institutional Assessment

M2i assesses institutions on the following aspects.

  • Quality of the Board and its functioning
  • Appropriateness of its operational strategies
  • Its growth plans and strategy for sustainability
  • Quality of human resources
  • Effectiveness of accounting system and MIS
  • Quality of internal control systems
  • Appropriateness of business plans
  • Portfolio quality
  • Operating efficiency and profitability
  • Capital adequacy
  • Legal compliance


Financial Model

Based on the assumptions derived during the institutional assessment and the work shop, a financial projection model is developed. Broadly, the financial model includes the drivers for costs and revenues as input, and projections of financial statements as outputs. The important aspects covered in the financial model includes operations, investment aspects and financing mix. The outputs of the financial model are balance sheet projections, income statement projections and cash flow projections.

Business Plan Document

The business plan document will follow from the institutional assessment and the financial model. It will include the following:

  • Articulation of Mission and Vision
  • Governance structure
  • Organizational structure
  • Products and services
  • Market segmentation and potential for market
  • Human Resource Policy
  • Outreach Projections
  • Projected financing plan and projected capital structure
  • Projected Financial Statements


M2i has undertaken business planning exercises for various MFIs and other business enterprises based in India and Afghanistan.

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