Sample Financial Model created by Taylor Davidson Right-click to download. Zip file, 230 KB. See more details below.

Summary: Focus on what you can control. Download this Sample Financial Model (Excel spreadsheet) to help you explore and understand the key drivers of your business model.

There’s been a tremendous amount of discussion lately around a potential “startup depression”, highlighted by Sequoia Capital’s presentation to their portfolio company CEOs.

I’ve commented throughout the web on many angles of the subject; the general gist breaks down to a) most of the the actions startups need to take in recessions they should have been doing anyway, and b) recessions can be great opportunities to start companies. Paul Graham agrees.

The important takeaway from the “startup depression” conversations should be to understand how macroeconomic conditions could impact decisions and expectations made by your customers, investors, partners and employees. But the focus should remain on what you can control: creating value, solving problems, finding solutions, staying in the game.

What should you do first?
Take a hard look at your business model: not just the “revenue model”, but the entire equation: customers, revenue, costs, balance sheet, cash flows and financing.

• Do you understand your key assumptions?
• Do you understand the key drivers of your business model?
• Have you estimated the impact of varying your key assumptions? (univariate and multivariate)
• Can you estimate your financing needs and sources and uses of funds under multiple operational and macroeconomic scenarios?
• Do you understand your burn rate and where your cash is going? (“Cash is King”)
• Do you know what you can control, what you can change, and how it will impact your bottom line?

Download this Sample Financial Model to help you understand how reach those important insights about your business. This model won’t solve all your problems, it’s not customized to your business and it doesn’t do the analysis for you: but it should help you start thinking, and if you have questions or need help on the analysis or customization drop me a line.

Sample Financial Model created by Taylor Davidson Right-click to download. Zip file, 230 KB. See more details below.

• © 2008 Unstructured Ventures, LLC | created by Taylor Davidson
• License: This Excel spreadsheet is licensed under a Creative Commons Attribution Non-Commercial License. What that means to me: use it, share it, edit it, simply provide attribution to me as the creator; but don’t sell it.
• Warranties, guarantees, etc.: View Excel file for statements of legal warranties, representation, guarantees and liability.
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