So you want to build a financial plan with key performance indicators (KPIs) for the next 5 or 10 years and also want to know how much your idea or startup might have an intrinsic valuation in money terms. This financial model can help you in modeling your startup and guide you through fine adjustment in all 15 modeling blocks.
All financial plans and valuations are built from financial and operational assumptions (or so-called drivers) in key business areas. Key assumptions can be derived from your known experience, researching other businesses operating on the same market segment, or playing with some known assumption in order to find the desired outcome by setting parameters for the rest of the unknown assumptions.
In order to derive planned financial line items, every assumption has several attributes:
- Main unit cost or price of the product
- numbers of units
- starting date and ending date of occurrence
- yearly increase based on current year
- additional seasonality attributes for estimating the number of customers and revenue from customers.
