What to Include in Your Financial Model
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
In building your financial model, make sure you include the following:
- Revenue projections -- your estimate of revenue from all sources.
- Cost of Goods sold -- your estimate of how much it will cost to build and deliver the product or service.
- Customer acquisition costs -- your estimate of the sales and marketing expenses required to acquire the customer.
- Operating expenses -- your estimate of the cost of running your business, such as office space and utilities.
- Capital expenditures -- your estimate of the cost of acquiring physical assets, such as equipment and machinery.
- Cash runway -- the amount of cash available based on operations as well as any fundraises.
Include metrics such as customer acquisition cost and customer lifetime value.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Let’s go startup something today.
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