In this episode of the Business, Wealth & Mindset Podcast, host Alex Sapala welcomes John Hughes, co-founder of the Pacioli Forecaster, a financial forecasting tool designed to aid entrepreneurs in their business journey. John shares his extensive background in the agricultural merchant trade and business advisory work, highlighting the challenges many new business owners face when it comes to financial literacy and investment preparation. He discusses the importance of having a solid financial forecast to attract investors and how the Patchouli Forecaster simplifies this process by allowing users to create detailed cash flow, profit and loss statements, and balance sheets. Listeners will gain insights into the tool's features, its relevance for various types of businesses, and the critical role of financial understanding in securing funding and driving business success.

KEY TAKEAWAYS

1. Importance of Financial Literacy: Many entrepreneurs struggle with financial forecasting and understanding their numbers, which can hinder their ability to secure investment. Having a solid grasp of financials is crucial for presenting to potential investors.

2. Pacioli Forecaster Tool: The Pacioli Forecaster is a financial forecasting tool designed to help businesses create three-year cash flow, profit and loss, and balance sheet projections. It includes teaching aids and is user-friendly, allowing entrepreneurs to input their data and generate professional financial documents.

3. Dynamic Feedback Mechanism: The tool allows users to adjust their forecasts based on real-time business performance. By inputting actual sales and expenses, entrepreneurs can see how their financial situation changes and make informed decisions to stay on track.

4. Accessibility for Various Business Types: The Pacioli Forecaster is versatile and can be used by any type of business, whether service-based, product-oriented, or large corporations. It helps users understand their financial needs and projections regardless of their industry.

5. Affordability and Trial Offer: The tool is available for a modest subscription fee of £10 per month, with a three-day free trial. This low-cost entry point encourages entrepreneurs to explore financial forecasting without a significant upfront investment.

BEST MOMENTS

"We realised that we needed to do better... the common denominator was they struggled when they presented their case to the business angels."

"If you want to get the message across to your students, Pacioli invented tools... we created our own financial forecaster from the Excel source file."

"A lot of people struggle with that. So if there is a tool that can actually make that process much simpler for people, it's absolutely definitely worth listening to."

"In the hands of a good teacher, it can be used very effectively... you can do it yourself."

"If you don't cancel it, it rolls on each month... for that small investment, you can change the whole prospects in raising money."

EPISODE RESOURCES

When starting a business as a student or non-student entrepreneur wishing to learn the basics of setting up a business, you need to get your financial forecast as credible as possible to ensure success going forward to Investors and Banks.

John Hughes had a successful career in the agricultural merchant trade after running an agricultural project in Southern India from age 18-20.  He then studied for an MBA over 2 years in the 1990’s, while at the same time growing a property renovation business with his wife in the Scottish Borders.  His work in Aberdeenshire and then Edinburgh with high growth start-ups revealed high levels of financial illiteracy which caused investment deals to be delayed or poor valuations to be struck.  The lack of a good financial forecaster to give to student and non-student entrepreneurs was a major problem and one which Sandy Neish and John have now solved. 

Links: Pacioli Biz Forecast Ltd | Financial Forecasting Software

VALUABLE RESOURCES
Business, Wealth and Mindset podcast series   

ABOUT THE HOST
Alex is a prize-winning chartered accountant with experience in financial markets from trading finance, capital hedging, structural foreign exchange, and interest rates to operational risk from the world’s top financial and advisory institutions including Deloitte, RBS, and JPMorgan Chase
Alex has been involved in property development programmes across different types since 2008, building and managing a portfolio that includes standard buy-to-lets, student accommodation and other houses in multiple occupancy (HMOs).
He specialises in raising finance, providing potential investors, investors, and joint venture partners with ad hoc (to their specific requirements), hands-free and hassle-free property investments solutions as well as coaching and mentoring
Alex aspires to share business and financial knowledge with upcoming entrepreneurs and experienced business minds to learn and master the concepts and mindsets required to succeed, stand-out, have the edge and make a difference.
Alex is also a keen traveller, cyclist, and photographer.

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