Software Requirements Specification (SRS) for Business Valuation Calculator

Introduction

Purpose:

The purpose of this document is to define the requirements for the development of a Business Valuation Calculator. This web-based application aims to assist entrepreneurs in estimating the value of their business based on various financial metrics.

Scope:

The Business Valuation Calculator will provide users with an interface to input financial metrics such as revenue, profit, growth rate, and other relevant parameters. The application will calculate and display an estimated valuation for the business.

System Overview

System Description:

The system will be a client-server application. Users will access the Business Valuation Calculator through a web browser. The server will handle the logic for business valuation calculations.

System Architecture:

The application will follow a three-tier architecture: presentation layer (client-side browser), application layer (server-side processing), and data layer (storage and retrieval of data).

Functional Requirements

Use Cases:

Estimate Business Valuation:

• Users can input financial metrics such as revenue, profit, growth rate, and other relevant parameters.
• The system will calculate and display an estimated valuation for the business based on the provided information.

Functional Requirements:

Input:

• The system shall allow users to enter the following financial metrics:
  • Revenue (Decimal)
  • Profit (Decimal)
  • Growth Rate (Decimal)
  • Other relevant parameters (if applicable)

Calculation:

• The system shall calculate the estimated valuation for the business based on standard business valuation methods and user-input details.

Output:

• The system shall display the calculated estimated business valuation to the user.

External Interface Requirements

User Interfaces:

• The user interface shall consist of input fields for revenue, profit, growth rate, and other relevant parameters, along with a “Calculate” button.
• The calculated estimated business valuation shall be displayed prominently.

Hardware Interfaces:

• The system should be compatible with standard computing hardware.

Software Interfaces:

• The application will be developed using HTML, CSS, and JavaScript for the frontend.
• The backend can be implemented using a server-side framework (e.g., Node.js, Django) with a database for data storage.

Communication Interfaces:

• The application will communicate with the server for business valuation calculations.

Performance Requirements

Response Time:

• The system should provide a response time of under 5 seconds for a typical user input.

Throughput:

• The application should handle at least 50 simultaneous users.

System Constraints

Regulatory Requirements:

• The application should comply with relevant financial regulations.

Hardware Limitations:

• The system should be compatible with devices supporting standard web browsers.

Security Requirements

 Authentication:

• User authentication may be implemented for personalized features.

Data Protection:

• User data, if stored, should be securely protected.

Quality Attributes

Reliability:

• The application should provide accurate business valuation calculations based on the entered financial metrics.

Maintainability:

• The code should be well-documented for ease of maintenance.

Usability:

• The user interface should be intuitive, requiring minimal guidance.

Testing Requirements

Test Cases:

Test cases should cover various scenarios with different revenue, profit, growth rates, and other parameters to ensure accurate business valuation calculations.

Test Case 1:

• Inputs: Revenue = 500,000 INR, Profit = 100,000 INR, Growth Rate = 10%.
• Expected Output: Estimated Business Valuation ≈ 750,000 INR.

Test Case 2:

• Inputs: Revenue = $1,000,000, Profit = $200,000, Growth Rate = 8%.
• Expected Output: Estimated Business Valuation ≈ $1,500,000.

Test Case 3:

• Inputs: Revenue = 800,000 INR, Profit = 150,000 INR, Growth Rate = 12%.
• Expected Output: Estimated Business Valuation ≈ 1,200,000 INR.

Acceptance Criteria:

• The application is considered successful if it produces correct business valuation estimates based on the provided financial metrics.

Project Timeline

Milestones:

Design, Development, Testing, Deployment

Development Phases:

Frontend development, Backend development, Testing, Deployment.

Glossary

None

Database Structure

Tables:

BusinessValuation_Calculator_Records:

• RecordID (Primary Key, Auto-increment)
• UserID (Foreign Key, if user accounts are implemented)
• Revenue (Decimal)
• Profit (Decimal)
• GrowthRate (Decimal)
• OtherParameters (Text)
• EstimatedValuation (Decimal)
• CalculationDate (DateTime)

Conclusion

This SRS document outlines the requirements for the Business Valuation Calculator. It serves as a guide for the development team and ensures that the application meets the specified criteria. Review and approval by relevant stakeholders are essential before proceeding with the development phase.