Business Planning with Microfin
October 29-November 2, 2018
Join microfinance practitioners and interested parties October 29-November 2, 2018 in Yangon, Myanmar for an in-depth training on Microfin. Microfin training focuses on strategic planning as the basis for creating operational forecasts for program growth, revenue, and expenses. Tradeoffs regarding interest rate policy, organic vs. exponential growth, and capital structure all will be discussed along with how they relate to operational decisions. Participants will use a case study approach to learn the Microsoft Excel based tool, and will have a good feel for how to create their own projections when they leave the training. This will be a very interactive learning process and participants will be encouraged to share experiences, feelings, and ideas regarding the state of the industry as well as successes and challenges currently facing the provision of credit and savings services to the unbanked. Although not required, bringing a Windows based laptop is encouraged. Lunch and two coffee breaks will be provided each day.
Microfin 4.15 was released in June 2017 with a significant feature which makes projecting debt payments faster and more accurate, as well as increasing the number of debt facilities restricted for portfolio use an organization can register in Microfin. The Microfin Consolidator will be demonstrated available at the training. Consolidation will allow MFIs to further decentralize planning to regional managers who will then submit their projections to the head office for review, analysis, and form the basis for overall projections. Note that consolidation solves the "large number" problem that MFIs with more than 100,000 clients face.
Based on potential participant feedback and some subsidy funding, the cost of the training has been adjusted to reflect the cost of the training separate from the cost of accommodations as follows:
Register before September 24, 2018 and your cost is USD 925 which reflects a USD 325 discount from standard pricing.
Register after September 24, 2018 and your cost is USD 1075 which reflects a USD 175 discount from standard pricing.
For those requests for accommodation received before September 24, 2018, I can offer six (6) nights of lodging at the course hotel, the Inya Lake Hotel (www.inyalakehotel.com) in a "superior" room for USD 525 or USD 675 in a "deluxe" room.
Howard Brady, a seasoned microfinance consultant of 24 years, will teach the workshop. Howard has been a Microfin instructor with Chuck Waterfield, the original author of the software, since 2000. In April 2016, Howard assumed the future development and maintenance of Microfin. Howard's consultancies have helped increase the efficiency and effectiveness of MFIs worldwide, have helped organizations find solutions to delinquency issues, and have created appropriate internal audit and internal control environments. Howard integrates his first hand experiences into his teaching to provide practical solutions to complex issues facing MFIs today.
A detailed, day by day agenda follows:
Microfin Training Agenda
- Defining the purpose of planning; business planning, strategic planning, operational planning, and financial projections
- Presenting the components of strategic planning; mission statement, vision statement, SWOT analysis, markets and clients, environmental analysis and institutional assessment
- Introduction to financial statements; balance sheet, income statement, cash flow statement, portfolio report
- Introduction to adjustments; inflation, subsidized cost of funds, in-kind donations
- Introduction to ratio analysis; definition of key ratios, trend analysis
- Introduction to Microfin, linking business planning aspects to the strategic planning methodology
Each Microfin section is then explained with relevant discussion on each section, after which individuals take time to input case study data and make individual operational decisions based on their understanding of the case study and own relevant operational planning experience. The training is broken down into the following pieces:
- Model Setup Sheet: System Parameters including operating mode, consolidated or multi branch/region mode, inflation, indexing, and historical financial statements
- Products Sheet: Loan Products and how to divide overall loan portfolio
- Product Design Sheet: Average loan size by cycle, Repayment frequency and term, Grace period, Compulsory savings, Interest calculation method, Interest rate charged, Credit insurance
- Products Sheet: Agent or insurer of credit insurance, Line of credit product parameters, compulsory and voluntary savings parameters
- Product Activity Sheet: Initial balances, number of active loans, client retention, resting or delayed disbursements
- Graphs Page: Introduction to Loan projection graphs
- Branch Page: Line of credit projections, compulsory and voluntary savings projections, credit insurance projections
- Branch Page: Loan loss provision and write off, loan officer analysis, number of branches
- Inst. Cap. Page: Branch office and Head office staffing
- Branch Page: Brach office staffing and staffing costs
- Head Office: Head office staffing and staffing costs
- Inst. Cap. Page: Branch and head office other operating costs
- Branch Page: Details of operating costs
- Head Office Page: Details of operating costs
- Inst. Cap. Page: Branch and Head office Fixed Asset definitions
- Branch Page: Fixed Asset details and projections
- Head Office Page: Fixed Asset details and projections
- Inst. Cap. Page: Building, Other Asset, and In-kind subsidy
- Head Office Page: Tax calculations, In-kind subsidy analysis
- Fin Sources Page: Unrestricted and Restricted Sources (beginning balances, interest rates, indexing to foreign currency), Initial cash balances, Liquidity requirements, Market rate cost of funds, Interest Rate refinements
- Fin Flows Page: Detailed financing by source, automated default funding sources, investment strategy (income on investments), cash flows,
- Advanced topics: Advanced Mode, Navigator Page, Optional tools, Export/Import, Variance Analysis, and other tools.
- “How to?” questions and answers
- Final refinement of the projection model
- Presentation of Certificates and course evaluation