Use Case

Defensible Numbers for Your Clients

Turn "I think" into "The analysis shows." Give clients and stakeholders risk-adjusted projections backed by Monte Carlo simulation.

The Problem with Client Projections

🎯

Single-Point Estimates

Clients give you one number. Banks and investors ask "what if it's wrong?"

🤷

Gut-Feel Contingencies

"Add 10% buffer" - but why 10%? No data to defend it.

📉

Optimism Bias

Clients underestimate costs and timelines. You know it, but can't prove it.

⏱️

Manual Scenarios

Building best/worst/likely cases in Excel takes hours and still misses combinations.

A Better Way

1

Gather Three-Point Estimates

Ask clients for Optimistic, Most Likely, and Pessimistic values. This surfaces their own uncertainty.

2

Run Monte Carlo Analysis

5,000 simulations in 30 seconds. Every combination of outcomes, weighted by probability.

3

Present Confidence Levels

P50 = likely outcome. P80 = prudent planning. P90 = conservative. Let stakeholders choose their comfort level.

Three Ways to Use It

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Startup Evaluation

Runway analysis, burn rate reality checks, milestone feasibility

The Scenario

Your client is a seed-stage startup. They claim 18 months runway and plan to hit Series A milestones in 12 months. The founder is confident. You're skeptical.

What the Founder Says

Monthly Burn: $45,000
Cash on Hand: $810,000
Runway: 18 months
Time to MVP: 6 months
Time to Series A Ready: 12 months

What the Analysis Shows

P50 Monthly Burn: $52,000
P80 Monthly Burn: $61,000
P50 Runway: 15 months
P80 Runway: 13 months
P80 Time to Series A Ready: 16 months
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Your Advice

"At P80, you'll run out of cash 3 months before you're Series A ready." Recommend either: (1) raise a bridge round by month 10, (2) cut burn to extend runway, or (3) accelerate timeline to MVP. Now they can plan proactively instead of hitting a wall.

🏦

Loan Applications

Justify funding requests, show banks realistic scenarios

The Scenario

Your client needs financing for a facility expansion. They've budgeted $480,000 and want to request exactly that. The bank will ask about contingency.

Client's Budget

Construction: $320,000
Equipment: $95,000
Permits & Fees: $25,000
Other: $40,000
Total Request: $480,000

Risk-Adjusted Analysis

P50 Total Cost: $498,000
P80 Total Cost: $542,000
P90 Total Cost: $589,000
P80 Contingency Needed: +$62,000 (13%)
Recommended Request: $550,000
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Your Advice

"Request $550,000, not $480,000." When the bank asks why, show them the analysis: "Monte Carlo simulation of 5,000 scenarios shows 80% confidence requires $542K. We're requesting $550K to provide adequate buffer without over-borrowing." Data beats gut feel.

📊

Investment Analysis

Go/no-go recommendations, risk-adjusted returns

The Scenario

Your client is considering a $200,000 investment in new production equipment. The vendor promises 18-month payback. Should they proceed?

Vendor's Projection

Equipment Cost: $200,000
Monthly Savings: $12,000
Implementation: 3 months
Payback Period: 18 months
3-Year ROI: 116%

Risk-Adjusted Analysis

P50 Total Cost: $218,000
P50 Monthly Savings: $10,200
P50 Payback: 24 months
P80 Payback: 32 months
P50 3-Year ROI: 68%
Probability of Positive ROI: 78%
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Your Advice

"Proceed, but expect 24-month payback, not 18." The investment is sound - 78% probability of positive ROI. But set realistic expectations: P50 payback is 24 months, not the vendor's optimistic 18. Budget for $220K total and plan cash flow accordingly.

Which Tool to Use

📅

Schedule Risk Analyzer

Timeline feasibility

  • Milestone achievability
  • Project duration confidence
  • Deadline risk assessment
Use Tool
💵

Cost Risk Analyzer

Budget & funding analysis

  • Loan amount justification
  • Contingency calculation
  • Cost confidence levels
Use Tool

Why Clients Value This

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Banks & Lenders

"Finally, a loan application with realistic contingency analysis. This shows they've done their homework."

👔

Boards & Investors

"I appreciate seeing P50 vs P90. It lets me choose my risk tolerance instead of guessing."

🏢

Business Owners

"My accountant showed me I needed $70K more than I thought. Saved me from a cash crisis."

Give Your Clients Better Numbers

$49/month or $300/year. Less than a coffee a day.