Financial model development

What's included in the model

A Google Sheet template that includes:

• Assumptions — the model's core parameters based on unit economics

• Staffing plan — personnel and payroll costs

• Fixed costs — infrastructure, rent, equipment

• Unit economics — metrics and contribution-margin calculation for the first and last cohort

• Cohorts — potential customers, customers, transactions for each cohort

• Product plan — plan/actual metrics by month, new and returning customers accounting for cohorts

• P&L, Cash Flow, Balance — profit and loss statement, cash flow, balance sheet

• Summary report — by year with charts of how the indicators change

The work process

• Filling in the template based on an interview with the client
• Presenting the finished model
• Two defenses — I check how well the client understands the model and can use it

Methodology

The model is built to the FAST standard and contains no hidden formulas. Some formulas look complex — that's due to using a sigmoid curve for the improvement of business indicators.

At its core is a proprietary methodology for building a product plan based on cohorts and unit economics tied to quantifying team competencies. This approach reflects the product's development prospects based on an assessment of the team's ability to achieve its goals.