Startup Financial Modelling and How to Build One
Without a financial model, your startup will be a business without a functioning spine. It might still have all the vital organs, but moving forward will be difficult which will slowly lead to the brand’s extinction. That is how vital financial modelling is for startups. With that established, however, you cannot just have a spreadsheet with a few equations. No prediction is always better than wrong predictions and your startup’s financial models cannot return erroneous results. If you are building one, it should be both efficient and effective that requires expert startup financial model training. How to build a financial model? It goes without saying that you will need a data organization tool like MS Excel to build your financial model. From there on, you can typically follow one of these avenues to create a working model for your startup. Top-down financial model Here, you know your macro scenario and gradually step down to come to micro solutions that you must im...