Strategic Finances

Sustainability <-> Financial Models

Investments -> Driver of growth

Sustainable cash model

Missing Connections

Service chain

Full economic cost

PricingStakeholde

rs

Financial Model

Strategic Finances

Highlights

- Highlight 2 -> Cash model for every entity -

Strategic Finances

CASH OUT

CASH IN

BANKRUPT

LIMIT OF SUSTAINABILITY

SUSTAINABILITY

RESERVES/ INVESTMENT

- Highlight 3 -> Sustainability Model -

Strategic Finances

R>CostRevenues

of operations

- Highlight 4 -> Full economic Cost-

Strategic Finances

- Highlight 5 -> Pricing Model-

Strategic Finances

- Highlight 1 -> Service Chain -

Strategic Finances

Local Committee

AIESEC XP

AIESEC International

National Committee

Cost/serviceMembers to

Stakeholders

Revenues/CashStakeholders to LC

Cost/serviceMC to LC

Revenues/CashLC to MC

Cost/serviceAI to MC

Revenues/CashMC to AI

Partnerships

Partnerships

Eg. Myaiesec.net, int. conferences, etc

Eg. Myaiesec.net, coaching, travel, etc

Marketing materials, matching

Strategic Finances

How to implement Financial Models?

Collect info

Define $$$ bottom-lineDefine fixed cost budget as well as a normal-level budget

Engage Key members from your LCs (LCPs, LCVPFs, etc.) to co-define the services provided by the MC

Make the Connection

of the services to the budget and define how much should be covered by LCs

Consider: - All strategic components & basic minimums to operate- How much time/effort/money does it take from how many people to bring revenues/cash-in-Strategic vs operational services

What does it mean for your LC?How much each LC should pay based on what allocation/criteria & when

SustainPrepare an action plan how to get there and define your margin to sustain your reserves

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