Using Twine Benchmark during COVID-19

by Twine

15th April 2020

Worked Example #1

Scenario

You are a Community Hub that has suspended all of it’s in-person activities, including all of your revenue generating and trading activities. You have been able to move a small number of services online, including one local authority contract worth £15,000 per year.

Your need

You need create a new business plan for the mid- to long-term (the next 8 to 12 months) that accounts for the loss of trading income and helps you stay solvent during that time.

Using Twine Benchmark to test new business plans

Use Twine Benchmark as a lightweight and fast way to test new business plans, using real community business data to forecast the potential results.

The Assessment Tool allows you to test and alter a range of variables across your Income, Expenditure and Assets and see what effect it would have on key measurables like Resilience, Net Current Assets Ratio or Trading Ratio.

The Output Report breakdown analyses your new figures for outliers and helps you ask the right questions – e.g. for our new levels of Income, do we have disproportionate Rent or Salary costs?

  • Test new business plans
  • Understand their impact
  • Ask the right questions

Worked Example #2

Scenario

You are a community pub applying for contingency support from a funder, to help you survive in the short- and mid-term.

Your Need

You want to demonstrate to a funder the financial position of our business - now and in a variety of situations - so they can direct their support to where it will have the greatest effect.

Using Twine Benchmark to add data & insights to applications – prove your need and make the case

Using your most recent profit and loss statements, you can complete the Input Form section of the Assessment Tool.

The Output Report calculates as a series of key metrics that illuminate the financial health of your business. In this case, you have a Net Current Assets Ratio of -0.1 which suggests that you might not have enough working capital to cover our costs; and a Resilience ratio of 0.12 indicating that you have very little in available funds to plug the gaps. Raising this to a funder means you can get the financial assistance you need quickly.

The Input Breakdown highlights the outliers in our financial situation. In this case, you have disproportionately high building maintenance costs for a pub of our size, because we recently took over a historic building in a poor state of repair. You can highlight these issues to funders and support each point using the data. Your funder can then direct you towards contingency support available for the protect of heritage buildings, for example.

Related articles

Untitled-1Untitled-1Untitled-1PathPathUntitled-1