What is a financial model?
A financial model is a spreadsheet that projects how your business will perform over the next 18 to 36 months. It connects revenue assumptions, cost structure, hiring plans, and cash flow into a single view that lets you stress-test decisions before you make them and shows investors how you think about the business.
Who this is for and when to use it
Pre-revenue African founders who need a first model for an investor conversation, ventures with early traction that need a more sophisticated planning tool, and operators preparing for a Series A. Use the model before any fundraise, during annual planning, when considering a new product line, before a major hire, and as a monthly tracking tool against actuals.
What is inside
A written guide that explains the structure of a startup financial model, the difference between bottoms-up and top-down assumptions, and the common mistakes founders make, plus two spreadsheet templates. The Simple model handles up to one product and a small team. The Intermediate model handles multiple products, units of activity, and a more detailed hiring plan. Pair with The Financial Model Guide for the full narrative explanation.
Key concepts you will learn
Revenue drivers versus revenue assumptions, the difference between operating expenses and cost of goods sold, gross margin and contribution margin, cash runway and burn rate, the three-statement model (P&L, balance sheet, cash flow), sensitivity analysis, and the link between your financial model and your pitch deck.