Finance
Financial Modeling
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The Practica AI Coach helps you improve in Financial Modeling by using your current work challenges as opportunities to improve. The AI Coach will ask you questions, instruct you on concepts and tactics, and give you feedback as you make progress.Intro to Financial Modeling
Financial modeling is a process of creating mathematical representations of financial situations. It is used to make informed decisions about investments, business operations, and financial planning.
Financial planning for SaaS startupsNikos provides a thorough walkthrough of the elements of a standard Saa S financial model.
Financial Model Assumptions
Financial model assumptions are critical to the accuracy of the model. They are the inputs that drive the calculations and can include revenue projections, cost estimates, and growth rates. Assumptions should be based on historical data, industry benchmarks, and expert opinions.
Tweetstorm: Fixable Mistakes in Financial ModelsLeo provides tips based on the models he's seen across seed and Series A companies, covering topics such as breaking out assumptions, jumpiness, having clear hypotheses, Budgeting tips, and more. The replies also capture a number of great tips based on experience.
The Power and Honesty in a L4M Model. Build One Now.Jason explains how many financial models are too rosy, and that a model that is constantly updated based on the trailing last four months can be highly accurate and predictive.
Financial Model Templates
Financial model templates are pre-built models that can be customized to fit specific business needs. They can save time and ensure consistency in modeling. However, it is important to select templates that are appropriate for the business and to customize them appropriately. Templates can also be used as a starting point for building custom models.
Introducing the Lightspeed SaaS Operating ModelNatalie provides a template with a step-by-step guide. The model includes components for AE Rep Productivity, Inside Sales Productivity, ACV, Accounts, ARR, Sales Expense, Saa S Metrics, and a Summary P&L.
Financial planning for SaaS startupsChristoph provides a "simple" template example he made for Zendesk, and links to a "V2" he made a year later that is more advanced. The template model separates signups into trackable and non-trackable sources, and calculates revenue by converting signups to customers and multiplying customers by average revenue. It accounts for costs like marketing, support, and development. Profit and cash flow are estimated simply at first. Notably, sanity checks are included to flag unrealistic projections like an EBIT margin over 90% or too few customers per support agent, helping catch planning mistakes.
SaaS Startup Financial ModelBen's model has tabs for Headcount Planning, a Recurring Revenue Model, an Operating Expense Model, and a Summary P&L.