Mistakes to Avoid in Financial Modeling

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Your financial model can be used not only for fundraising, but also for running your startup.

Avoid these mistakes in setting up your financial model:

Tying your revenue to a factor that doesn’t actually drive revenue.

Figure out what actually drives sales and build your model around that.

Trying to identify exact numbers for factors such as conversion rate.

Instead, use a range of numbers to account for variations.

Skipping the research into companies in your sector.

Instead, spend time looking at similar companies to find out what drives their business.

Trying to include too many drivers in your business model.

Instead, focus on the top drivers that account for the majority of your sales.

Setting up the financial model for generating financial statements only.

Instead, set up the model, so it also calculates key performance indicators.

Design the spreadsheet for running the business in addition to raising funding. 


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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This is Investor Perspectives. I’m the host of Investor Connect, Hall T. Martin, where we connect startups and investors for funding.

In our final Investor Perspectives episode entitled “Faith-Based Investing in a Post-COVID World”, you’ll hear about changes expected in the coming 12 months and our guests’ final thoughts.

As the COVID pandemic passes, we emerge into a new era. The faith-based investing space is now undergoing tremendous change as we shift to a post-COVID world. Faith-based investing takes precedence with many investors in the financial industry. We have investors and startup founders describe the changes coming up.

Our guests are:

Tony Long, Co-Founder and Managing Partner, CLX Ventures LLC [01:12]
David Simms, Managing Partner and Founder, Talanton [03:59]
Andrew Stoner, Chief Investment Officer, Paradiem LLC [06:07]
Wes Lyons, General Partner, Eagle Venture Fund [07:56]
Michael Arrieta, Founder and CEO, Garden City Companies [11:23]
Josh Wilson, Principal Broker and Owner, Kingdom Syndicate [14:04]
Bill Wichterman, Angel Investor [16:29]

We hope you enjoy the show.
_______________________________
For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/  
For Investors check out: https://tencapital.group/investor-landing/    
For Startups check out: https://tencapital.group/company-landing/    
For eGuides check out: https://tencapital.group/education/    
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group 

Please follow, share, and leave a review.

Music courtesy of Bensound.