1. Why is Previsio a particularly interesting tool to use during this COVID-19 period?

In the wake of the pandemic, entrepreneurs are being offered several programs to preserve or revive their business. To join, they will have to provide complete financial statements. The software is a free and user-friendly tool that has nothing to do with the Excel file that just seeing can make some of us sick! At the end of the exercise, the entrepreneur will have a beautiful professional report to present to his or her funder.

The tool also allows you to monitor your operations in real time while many companies are currently weakened by drops in revenue and productivity. It is an opportunity to take a picture of your company and to question yourself.

2. What are the main mistakes entrepreneurs make when it comes to making (or not making) their financial forecasts?

For some entrepreneurs at the head of companies, financial management is too often neglected. They do not understand it and often put it off until later. How can we blame them? No one has shown them! They do not see the need for it and prefer to do what they believe is most profitable: work and count later. So they focus on their operations and give their figures to their accountant once a year and rely on him to decide on the financial health of their company. However, cash management must be a priority. The calculation is worth the work, says the maxim.

Let me give you an example. A marketing firm owner who is offered a large contract representing 80% of his turnover can be happy about it, but he must also do his calculations. By examining his figures more closely, he weighs the pros and cons. And he chooses to refuse. Why? He took the time to carefully analyze the revenues, but also the expenses generated by this contract. He notes that it would have generated a profit margin too small for the financial risk. By taking the time to do the exercise, he made an informed decision by not being impressed by the size of the contract or by the increase in his turnover. This is an example of a wise entrepreneur who has control of his finances.

3. It is said to be a tool designed for entrepreneurs, by entrepreneurs… Who is behind Previsio?

As part of the TD Ready to Act challenge, TD Bank mandated the École des entrepreneurs du Québec (ÉEQ) to improve the financial literacy of entrepreneurs. Since everything was in line with the school's mission, we developed the software with the participation of focus groups made up of entrepreneurs and economic stakeholders. These discussions allowed us to confirm that software was the best avenue.

4. What does the ÉEQ do with data collection? How is confidentiality ensured?

The previsio.ca website has an SSL certificate required to encrypt data between the website and its users. Neither the ÉEQ nor the firm that developed the software has access to the data recorded by contractors. The issue of data security is taken very seriously.

5. Why did you choose to make the tool completely free?

Because if we put a cost, start-up entrepreneurs might miss out. They are solicited enough by monthly payments of all kinds. In addition, accessibility is part of the ÉEQ's mission. The tool is therefore free and if users wish to go further, they can turn to the ÉEQ for additional training covering all areas of the business.

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