Financial Model
A financial model is a comprehensive multiple-factor forecast that showcases a business’s financial potential. Whether you are seeking pre-seed, seed, or series funding or simply looking to refine your financial strategy. Your financial model will be tailored specifically for early-stage and growing businesses since “small business is not a little big business”. While a large corporation with a sustainable cash flow generating business model possesses bargaining power that affects suppliers and benefits from the effect of scale, a startup depends heavily on liquidity, especially in a current inflationary environment. Professionally designed, easy-to-understand spreadsheets and charts will allow you to model various scenarios and communicate your story to investors effectively
A financial model assesses future potential and risks based on the assumptions such as:
Revenue Projections: Detailed forecasts that align with your business strategy, growth targets, and market potential.
Cost Analysis: Breakdown of operational expenses, cost of goods sold (COGS), and capital expenditures (CAPEX) to ensure realistic budgeting.
Profitability Metrics: Calculation of EBITDA, ROI, and other critical indicators to demonstrate financial health and scalability.
Scenario Planning: Flexible models that allow you to simulate multiple scenarios (e.g., best case, worst case) to prepare for any outcome.