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Financial Modeling

A financial model is an essential tool for businesses to manage and predict their finances. It helps founders make well-informed, data-driven decisions, and plays a critical role in securing investor funding

💡 Financial Models ≠ Budgets

While financial models provide comprehensive analysis and projections of a business’s financial performance, budgets focus on specific financial planning and resource allocation for a defined period.

We develop comprehensive financial models that accurately represent your business and provide founders, managers and  investors with a holistic understanding of its financial aspects. Whether you’re a startup seeking funding or a company launching new products, a customized financial model is an essential tool for optimizing your financial strategy and making data-driven decisions.

Rapid Delivery

The entire project typically takes 2-3 weeks, balancing speed and quality.

Individual Approach

We dive deep into your revenue and expense structure to ensure our financial model accurately reflects your founder’s vision.

Easy-to-Use & Compliant Financial Model

Well-designed Excel file, which is compliant with industry standards and user-friendly for non-financial individuals. This design makes it simple to adjust the model as your business grows.

Tabs & Key Metrics to Provide a Comprehensive View

  • Legend: Describes the tabs in the financial model and provides guidance on which data can be edited.
  • Input: Contains the relevant business parameter and assumption structure that you can manage.
  • Financial Statements: Includes industry-standard Income Statement, Balance Sheet, Cash Flows, and an executive summary for creating compelling pitch decks.
  • Revenue: Customized revenue calculations relevant to your business model.
  • Cost of Service: Direct expenses related to revenue, contributing to gross profit and operational efficiency.
  • Payroll: Expenses related to your team with the flexibility to adjust headcount and salary breakdown.
  • Sales & Marketing: Operational expenses for customer acquisition and the execution of the go-to-market strategy.
  • General Administrative: Operational expenses for managing day-to-day administrative functions.
  • Assets & Depreciation: Includes capital expenditure assets and depreciation (if applicable).

A well-designed financial model offers numerous benefits and help with:

  1. Optimized Revenue Structure: Determine an effective pricing model and customer acquisition and retention strategy, considering cash flow dynamics and net profit.
  2. Effective Expense Management: Anticipate expenses, establish budget control checkpoints, and identify hidden opportunities for cost savings.
  3. Transparent Financial Projections: Calculate key investment metrics, such as ARR, Payback Period, and IRR, and understand the required investment amount, breakeven point, and runway for effective due diligence and compelling pitch decks.
  4. Various Scenario Testing: Evaluate the financial impact of different business ideas, such as pricing adjustments, increased marketing investments, or reduced R&D expenses, to make data-driven decisions and optimize outcomes.
  5. Proper Goal Setting: Utilize financial model metrics to establish objectives and key results, creating a clear roadmap and tracking progress towards achieving targets.

A well-designed financial model can vary in its level of details depending on the project stage, but it consists of the same building blocks and can be scaled as business evolves.

  • Seamless Individual Approach: We dive deep into your revenue and expense structure to ensure our financial model accurately reflects your founder’s vision.
  • Easy-to-Use Design: Our financial models are scalable and non-financial user-friendly, making it simple to adjust and navigate as your startup evolves.
  • Essential Financial Statements: We provide the standard financial statements necessary for your investment round.
  • In-Depth Market Analysis: Our competitive landscape analysis improves the precision and quality of assumptions used in your financial model, making projections more accurate.
  • Compliance with GAAP Standards: Our financial projections are accurate and reliable, aligned with Generally Accepted Accounting Principles (GAAP).
  • Rapid Delivery: Our financial modeling services typically take 2-3 weeks to complete, balancing speed and quality.

Ready to take your financial modeling to the next level? Contact us today to get started!

Our Custom Process

1.

Business Discovery

Initial Call **(~45 min)** to identify project goals and pricing<br /> Q&A Workshop **(~90 min)** based on specific questions and topics that we have prepared<br /> This step helps to gain insights into your business strategy, revenue streams and expense models.

2.

Data Gathering

Access to exclusive pre-filled templates and an interactive content for seamless data entry<br /> Market Research to identify benchmarks and industry best practices<br /> This step ensures all relevant data is captured for accurate financial projections.

3.

Draft Model

Draft Version that reflects the structure of parameters and calculations for revenue and expenses<br /> Presentation **(~60 min)** to explain how that model works<br /> This step is crucial for validating the architecture of the financial model and gathering your feedback.

4.

Investor-Ready Model

Final Version with incorporated changes and adjusted model parameters<br /> Financial Statements to create an Executive Summary for investor outreach<br /> This step prepares the model for sharing with investors, employees, and integrating its data into pitch decks.