Financial Forecast

How will an expansion to Mexico affect customer service, turnover, profitability, market share and other financial and qualitative factors in the long term.

Together, we will work out a detailed budget plan and ensure that your organization will improve your profitability, turnover and market share.

Together, we will work out a detailed budget plan and ensure that your organization will improve your profitability, turnover and market share.

1. Assessment of Financial Triggers

Together, we work out a detailed 5-year plan including the current year. In addition to the usual KPIs such as sales, profitability, and market share, we will evaluate many other factors (see further below).

Also bear in mind that you will be more attractive to new clients as you produce on their continent, so an improved return service, customer service or faster delivery will give you the opportunity to attract new potential leads.

Thus, higher objectives should be achieved with an expansion. 

Any expansion must be well thought through as it should be a long-term investment.

financial analyis and forecast

1. Assessment of Financial Triggers

Any expansion must be well thought through as it should be a long-term investment.

Together, we work out a detailed 5-year plan including the current year. In addition to the usual KPIs such as sales, profitability, and market share, we will evaluate many other factors (see further below).

Also bear in mind that you will be more attractive to new clients as you produce on their continent, so an improved return service, customer service or faster delivery will give you the opportunity to attract new potential leads.

Thus, higher objectives should be achieved with an expansion. 

you want to calculate what marketshare, profititability and turnover you could achieve with an expansion?

Get in touch with us and we will explain you how we would execute a financial forecast with you!

Contact Us

you want to calculate what marketshare, profititability and turnover you could achieve with an expansion?

Get in touch with us and we will explain you how we would execute a financial forecast with you!

Contact Us

2. Financial Service - Quantitative Factors of an Expansion

With your data, we will make a cost estimation and calculate together a detailed forecast respectively create a cash flow, balance sheet and profit/loss statement with the scenario of an expansion.

Together, we will make a cost estimation and calculate a detailed forecast respectively create a cash flow, balance sheet and profit/loss statement with the scenario of an expansion.

financial analysis of the market

Labor Costs

We calculate all the necessary labor costs which will occur with an expansion. In Mexico, the workforce is up to 10x cheaper than in the United States with the same qualifications. 

Tax Costs

In the financial forecast, we will also see how much money can be saved through the tax advantage of Mexico, called the Immex program.

Financial Forecast

Together, we work out a detailed 5-year plan including the current year. We will then compare it to your actual forecast which will give us a conclusion whether an expansion make senses or not.

Asset Costs

Mexico has a modern and cheap infrastructure. We will show you how much you have to pay for rent, logistics, or offices. 

Initialization Costs

Be aware that you need a significant amount of money to do the setup of the company; rent, lawyer, employees, transfer machines, training, etc. Read more below abou that subject.

Freight Cost

Freight cost should not be underestimated when you undertake an expansion. You also have to take into consideration that we need a freight and logistic partner which will also generate cost.

Yearly Budget

Preparing a detailed, yearly budget plan is a critical success factor as you can compare different financial factors with your actual budget numbers. 

Liquidity

We will calculate what liquidity is needed to run the operations in Mexico. 

3. Financial Service - Qualitative Factors of an Expansion

With an expansion, you should not only take into the consideration the financial aspects but also qualitative. 

Also bear in mind that you will be more attractive to new clients as you produce on their continent, so an improved return service, customer service or faster delivery will give you the opportunity to attract new potential leads. Thus, higher objectives should be achieved with an expansion.

With an expansion, you should not only take into the consideration the financial aspects but also qualitative.

Breaking Language & Cultural Bridge

By setting up your company in Mexico, you will hire people who have the knowledge of the language and culture. This will help you to avoid missunderstandings with your clients oversea and improving your customer service level.  

Supply Chain / Distribution Center

As you are settled down on the same continent as your client or supplier, you increase your efficiency in the supply chain. 

Faster Return Service

Beside saving costs through cheaper infrastructure and low return time, having a warehouse close to your customers means also being faster and higher efficiency with your return service. 

24h availability

You will avoid the time differences and ensure to be available 24/7 – the whole year. 

4. Initialization costs

The set up costs should not be underestimated in an expansion process as there are many factors which have to taken in mind. We have listed up some costs which (might) occur: