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Modules

Explaining the concept of modularity with the Standard Model system.

The problem with financial model templates has always been that they do some things you need, but not everything, and it can be incredibly hard to modify them to do what you want. One of the reasons for that is because modeling the revenues for a business - the sales methodologies, the growth engine, what is sold and how it’s sold, etc. - can be incredibly specific to each business, and it’s very hard to build a model that can work for a wide variety of businesses.

That’s why I’ve worked to build a modular model - a standardized financial core with an easy methodology to integrate with any revenue forecast - to help solve the problem with financial model templates, and to make it as easy as possible for you to use a template and minimize the amount of time you have to spend to make it work for you.

The Standard Financial Model is a fully modular model that seperates the financial core - financial statements, operating costs, hiring plan, cap table, valuation, and actuals reporting - from the growth and revenue projections, allowing you to easily change or replace the default revenue model built into the Standard Model. 1

The v2 series of modules for SaaS, Ecommerce, and Services and Consulting have been deprecated, and are no longer preintegrated into the Standard through the Export sheet functionality. The features of each have been built into the v4 Standard Model core, and are now prebuilt variants of the Standard.

They can still be integrated if desired; simply link them into the model through Hooks and Forecast sheets using the process described at Hooks, the same as any custom or third-party revenue model. Integration is straightforward and should take less than 10 minutes. 2

Questions, ask anytime.

Build your own module

Want to build your own module to fit the Standard Model? Understanding how Hooks is the important step; this sheet exposes the key information to pass into the financial core for the consolidated financial statements and metrics to work, making the integration process as easy as possible. The Standard Model is designed to be an open system for anyone to build modules to fit different types of businesses.

If you want to share or promote your module, contact me ›


  1. The Starter Model can also be used as a modular model, but it can still be used as a modular model and integrated with any of the modules or free tools, using the same concept of linking into Hooks and Forecast sheets in that model. 

  2. The free tools can also be used as modular components, as they focus on revenue and sales forecasts and do not include financial statements, whereas the base financial models - the Starter and Standard - have financial statements as a core feature. While the links are not prebuilt, it is fairly easy to copy the sheets from a free tool into the Starter or Standard and link the revenues and cost of sales calculations into the financial model.