As a long term startup CFO, we’ve used and built a bunch of finance tools over the years. We’re excited and pleased to to share these with you for free.
The first of these tools is a simple Excel startup financial model template (see below). In a few weeks, we will release a more comprehensive financial model template in a few weeks.
Over the rest of this year we’ll be releasing more startup finance tools, including:
- Equity and Valuation calculators
- Cap(italisation) tables
- Startup finance glossary
- Pitch Deck
- And more
Startup finance tools 1: The financial model template
We often get asked, “Do you have a financial model template I can have?”. So without further ado, here it is:
If that’s all you’re after, thanks for coming and all the best. If you like it, tweet it!
For a quick overview of this model, read on.
If you’re interested in some of the thought process that we go through in helping build financial models, sign up to our mailing list. When you’ve signed up, we’ll guide you through the thinking behind financial models, other elements of startup finance, and you’ll get our other startup finance tools too.
Overview of the simple Excel startup financial model template
All models should just be seen as a guide, not as an answer in and of themselves.
For the sake of seeing how it all hangs together, we have in some cases here included some sample numbers (eg advertising budget per year). These numbers should not be taken as a definitive estimate of what the relevant expense is. Rather it is just a number for you to consider what it could be in your particular circumstance.
The details of each area will be addressed here over the next few weeks. But for the time being, here are a few points:
- This template is deliberately designed to be a simple “cash only” model
This first startup finance tool can be used as a structured guide to make a start in modelling key elements of your business (revenue, people and other expenses). You can use it to estimate the cash needs of your startup, which will help you estimate your fundraising needs. We’ll finish up this series of posts by introducing the more comprehensive Excel startup financial model template that you can use when you’re ready for this.
- The template is for 3 years on a month by month basis.
When you download the model it is shown in a “collapsed” form. You can see in the picture below that this allows you to easily show a high level summary in situ. To see/enter the detail simply click on the “+” symbols to expand them… and then click on the “-” to collapse them later if you want to show the summary view again.
What this startup finance tool includes
The template includes assumptions, detail, and a graph.
- Assumptions. Here you’ll list, in one place, the majority of the key assumptions and metrics that are used to model your startup business. It’s in one place: Easy to see, easy to change. Having things in one place is something we believe is important in spreadsheet design. We’ll talk more about why in the next article.
- Detail. The detail tab lists the detailed revenue, cost of sale, as well as people and other expense assumptions for your business. You can also include other capital expenditure (capex) items, as well as outside funds you’re intending to raise for an overall estimated cash position.
- Graph. A sample graph of the revenue, expenses, number of subscribers (for a SaaS-type business) and cash position for the first 12 months . We include this to give you an example of the type of graphical representation you might want to include in any fund raising documentation (such as a pitch deck).
Other financial model templates
Some other free models you might want to check out too:
- David Teten: Startup financial model template
- Christoph Janz: Financial Planning for SaaS Startups
- Christoph Janz: SaaS Financial Plan 2.0
- Andrew Chen: How to create a profitable Freemium startup (spreadsheet model included!)
Get emails to guide you through financial modelling
Sign up to our mailing list here and over the next few weeks we’ll guide you through. The more comprehensive Excel startup financial model template will come at the end of this series. By then, you’ll be ready to use it.