Growth model

posted by .

Hello everyone.
My task is to build a growth model for a company. The company offers services to businesses - and thus allowing the businesses to recruit new clients.
Assumptions:
- I started working with 10 businesses
- A business I start working with initially has 20 clients
- I'm recruiting 3 new businesses every month
- A businesses which is using my services will get 5 new client after every month of service (if he started getting my service on July 1st then on August 1st he will have 5 new clients)

I need to build a formula to calculate how much clients and how much businesses there will be in 6 months.

Here is how I started calculating manually:

MONTH 1:
10 (type A) businesses
20 clients (per business)
TOTAL - 10 businesses
TOTAL - 200 clients

MONTH 2:
10 (type A)businesses
25 clients (per business)
3 (type B) businesses
20 clients (per business)
TOTAL - 13 businesses
TOTAL - 310 clients

MONTH 3:
10 (type A)businesses
30 clients (per business)
3 (type B)businesses
25 clients (per business)
3 (type C) businesses
20 clients (per business)
TOTAL - 16 businesses
TOTAL - 435 clients

etc...


I need these to be variables that can be changed:
- number of businesses I started with
- how much new businesses I find every month
- how much new clients a businesses recruits after working a month with me
- how much clients a businesses initially has

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. finance (assumptions)

    The cost of capital for common stock is ke=(d1/Po)+g. What are the assumptions of the model?
  2. finance (assumptions)

    The cost of capital for common stock is ke=(D1/Po)+g. What are the assumptions of the model?
  3. Math

    Pick a company that pays dividends, then calculate the expected growth rate of your company using the CAPM. Once this task is complete, calculate the expected growth rate using the Constant Growth (or Gordon Growth) Model. Please use …
  4. finance

    Pick a company that pays dividends, then calculate the expected growth rate of your company using the CAPM. Once this task is complete, calculate the expected growth rate using the Constant Growth (or Gordon Growth) Model.
  5. macroeconomics

    What is the World Bank advising businesses in Singapore and Hong Kong to add businesses, how to get the businesses to grow, hire employees, etc.
  6. Business 101

    Carmen Santiago works for a number of businesses as a “consultant.” She has helped design accounting systems, provided accounting services, and analyzed the financial strength of her clients’ businesses. Carmen is working as …
  7. BUS

    PROVIDED ACCOUNTING SERVICES,AND ANALYZED THE FINANCIAL STRENGTH OF HER CLIENTS BUSINESSES. CARMEN IS WORKING AS A
  8. understanding and managing money

    Carmen Santiago works for a number of businesses as a consultant. She has helped design accounting systems,provided accounting services,and analyzed the financial strength of her clients'businesses. Carmen is working as a?
  9. civics

    In the United States, people pay taxes so government can provide services to the people. What is one benefit of the government providing services instead of allowing the free market and private businesses to do so?
  10. Civics

    In the United States, people pay taxes so government can provide services to the people. What is one benefit of the government providing services instead of allowing the free market and private businesses to do so?

More Similar Questions