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What is a module?

Explaining how modules work 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.

How modules work

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 modules extend the detail and functionality of the Standard Model by adding in additional detail or advanced methods for forecasting growth and revenues for specific business types. For example, while the Standard handles 1 average “order”, or “plan”, or customer, the SaaS Module handles by default up to 8 different subscription plans (and can be extended to many more) for any type of SaaS or subscription-based revenue company, and the Ecommerce Module handles by default up to 25 SKUs and two sales channels (and can be extended to many more) for any transaction-based revenue business.

The modules are built to make the integration process seamless and fast. You can purchase them at the same time as the Standard Model and thus purchase a pre-integrated model, or you can purchase them later once you’ve determined you need or can make use of the additional detail and functionality. Integration is as simple as copying the sheets of the module into your Standard Model, and then switching a dropdown selection on the Get Started sheet. Painless, and should take less than one minute. 2

Here’s the details:

Questions, ask anytime.

Build your own module

Want to build your own module to fit the Standard Model? Understanding how Modelhooks 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. The Starter does not come with the same prebuilt links between the modules and the model, but it can still be used as a modular model and integrated with any of the modules or free tools. 

  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. 

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