Fri, 28 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
There are two approaches to financial forecasting for startups.
The first is top-down forecasting.
Top down takes a macro perspective by using the overall market sizes and industry estimates for your type of business.
The top-down approach uses market share. Market share is divided into three segments:
Total Available Market -- anyone you can sell to.
Serviceable market -- your target market.
Beachhead market -- your initial segment to pursue.
Base your financials as a percent of market share.
Look at similar companies in the space to identify the COGS, gross margin, and operating expenses.
Give yourself three years to ramp to profitability.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Top_Down_forecasting_2.mp3
Category:general -- posted at: 2:56pm CDT