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Starter Financial Model

$74USD

 26 ratings
   Buy

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  Model Highlights

Five year financial model template for Excel or Google Sheets with prebuilt three statements - consolidated income statement, balance sheet, and statement of cash flows - and key charts, summaries, and metrics. Used by idea-stage, pre-seed, and seed stage companies. Add in your own revenue forecasts. Unlocked - edit anything - last updated in November 2020.

  Overview

Three year financial model template for fundraising and business planning for startups and entrepreneurs.

  Key features

Forecast revenues, operating expenses, cash and runway, financial statements, funding needs, and more.

Creates summaries and key reports using industry-standard metrics to help you clearly communicate your business.

  Used by

Made for founders, executives — CEO, CFO, COO, VP of Finance — or advisors, mentors, or consultants that need to create a financial model for an idea-stage, pre-seed, seed, A, or B stage company.

  Easy to use

Standards-based, extensively tested and used by thousands of companies across a wide variety of business types, revenue models, and needs.

  Edit anything

Use in Microsoft Excel or Google Sheets; all cells and formulas are unlocked for editing and transparency, add on or edit for your specific situation.

   Personal support

Built by a professional financial modeler with experience as an investor and running forecasting inside startups. Responsive, personal support — chat, call, or email — and available for custom services.

  Updates

Updates distributed to registered users for free, download the latest through purchase receipt anytime.

Made by a professional modeler with 20+ years of experience

Taylor Davidson
Founder, Foresight

I created the financial models behind Foresight so early-stage entrepreneurs can spend less time on finance and more time on their products.

  • Started building models for startups in 2000
  • Started Foresight in 2008, full-time since 2014
  • Former NYC-based venture capital investor
  • Experience in ecommerce growth and analytics
  • Former private equity analyst, strategy consulting associate
  • MBA in Finance and Accounting

I care about financial modeling because I believe that financial models can help us make critical business decisions even if the models themselves are not “always right”. Financial models can help even the earliest entrepreneurs if we build “minimum viable models” to focus on the decisions that matter most.

@tdavidson, and more about me ›

714+ users

of this model type from 2017 to today.

94% of users

say Foresight models will help them accomplish their goals. More ›

98% of support

requests say they are happy with Foresight’s support. (73% of requests resolved within 2 hours.)

Sources: internal sales data, post-purchase survey, customer support tracking, 2017 - present.

26 Reviews

“If you value your time as a startup founder, buying Taylor’s model is a no brainer. It lays a solid foundation upon which you can set your assumptions and make your own customisations - don’t reinvent the wheel! Having input from an expert like Taylor is also an indispensable resource.”
— Philip Kallberg, Cofounder, EatAbout

“Taylor’s financial models and consultative support were life savers for me as I put together our investor deck and materials. The template we used was very comprehensive and saved us weeks of work if we had tried to create this ourselves. In addition, Taylor gave us great feedback in terms of our approach which helped us refine our presentation and pitch and continues to be my “go-to” financial modeling expert.”
— Heather Holst-Knudsen, CEO and Founder, Hatchpad

View more ›

What’s Inside the Model

I build standards-based, rock solid financial models to solve real business problems. Here’s what’s inside the Starter Financial Model.

The structure is designed to be easy to extend by adding in additional detail or advanced methods for forecasting growth, revenues, and costs for specific business types.

The core of the model creates monthly forecasts for up to 36 months, which are then automatically summed into quarters and years.

How to extend the timescale ›

All cells and formulas are completely open and unlocked, so you can edit or change anything in the model.

Spreadsheet design ›

Inputs and calculations are clearly labeled, making it easy to see where to input numbers in the model.

cClors and formatting ›

Complete flexibility to create a revenue forecast by any method you desire. The Starter Model simply has inputs for revenues, and no prebuilt business logic for forecasting revenues.

For many early-stage entrepreneurs that do not have solid data or complicated revenue models, the simplicity is a benefit and makes it easier to build in any revenue forecast methodology.

If you want to use a model with an extensive prebuilt revenue forecasting structure, use the Standard Financial Model ›

To build your own revenue model, here’s how to model revenues ›

Simple yet robust methodology for creating a cost budget by month, quarter, and years, for up to three years and an optional partial year.

  • Build a detailed hiring plan by adding in employees and contractors, monthly salaries and when they are hired. Flexible inputs to input all costs easily on a month by month basis.
  • Expenses can be allocated to key expense areas for reporting and analysis, and select the accounting treatment with a simple dropdown selection.
  • Optionally, model inventory purchases and cost of sales based on forecasted sales, inventory turnover ratio, and minimum order quantity.
  • Optionally, calculate CAC and LTV using the data in the model.

Consolidated financial statements, including income statement, balance sheet, and statement of cash flows, all monthly, quarterly, and annually. The statements are automatically created through the revenue and costs forecasts in the model.

More about how to model financial statements ›

Model automatically uses the forecasted revenues and expenses to create a chart showing net loss, net profit, cash on hand, and breakeven, to easily communicate runway and burn.

Enter external fundings - e.g. equity, debt, grants) - and model automatically handles balance sheet and cash flow treatment, including automatically creating schedules of principal and interest payments, if debt.

Prebuilt summaries and key reports that provide key performance metrics at a glance. Summarized annual income statement and cash flows are prebuilt for easy sharing in financial and investor presentations.

Three charts that summarize the most important parts of the model, consisting of:

  • Burn and Runway: a chart that shows net cash burn and cash balance over time, combining revenues, expenses, and any external funding
  • Summary of Operating Expenses: A summary of the cost budget, using the categories you create on the Forecast tab
  • Sources & Uses: A summary pie chart that shows how the first fundraise - external financing - you put in the model (optional) is used to pay for the summary operating expenses over a period of time.
’

What’s Inside the Model

I build standards-based, rock solid financial models to solve real business problems. Here’s what’s inside the Starter Financial Model.

Flexible Structure

The structure is designed to be easy to extend by adding in additional detail or advanced methods for forecasting growth, revenues, and costs for specific business types.

The core of the model creates monthly forecasts for up to 36 months, which are then automatically summed into quarters and years.

How to extend the timescale ›

All cells and formulas are completely open and unlocked, so you can edit or change anything in the model.

Spreadsheet design ›

Inputs and calculations are clearly labeled, making it easy to see where to input numbers in the model.

cClors and formatting ›

Revenues

Complete flexibility to create a revenue forecast by any method you desire. The Starter Model simply has inputs for revenues, and no prebuilt business logic for forecasting revenues.

For many early-stage entrepreneurs that do not have solid data or complicated revenue models, the simplicity is a benefit and makes it easier to build in any revenue forecast methodology.

If you want to use a model with an extensive prebuilt revenue forecasting structure, use the Standard Financial Model ›

To build your own revenue model, here’s how to model revenues ›

Costs

Simple yet robust methodology for creating a cost budget by month, quarter, and years, for up to three years and an optional partial year.

  • Build a detailed hiring plan by adding in employees and contractors, monthly salaries and when they are hired. Flexible inputs to input all costs easily on a month by month basis.
  • Expenses can be allocated to key expense areas for reporting and analysis, and select the accounting treatment with a simple dropdown selection.
  • Optionally, model inventory purchases and cost of sales based on forecasted sales, inventory turnover ratio, and minimum order quantity.
  • Optionally, calculate CAC and LTV using the data in the model.

Financial Statements

Consolidated financial statements, including income statement, balance sheet, and statement of cash flows, all monthly, quarterly, and annually. The statements are automatically created through the revenue and costs forecasts in the model.

More about how to model financial statements ›

Burn and Runway

Model automatically uses the forecasted revenues and expenses to create a chart showing net loss, net profit, cash on hand, and breakeven, to easily communicate runway and burn.

Enter external fundings - e.g. equity, debt, grants) - and model automatically handles balance sheet and cash flow treatment, including automatically creating schedules of principal and interest payments, if debt.

Charts and Reports

Prebuilt summaries and key reports that provide key performance metrics at a glance. Summarized annual income statement and cash flows are prebuilt for easy sharing in financial and investor presentations.

Three charts that summarize the most important parts of the model, consisting of:

  • Burn and Runway: a chart that shows net cash burn and cash balance over time, combining revenues, expenses, and any external funding
  • Summary of Operating Expenses: A summary of the cost budget, using the categories you create on the Forecast tab
  • Sources & Uses: A summary pie chart that shows how the first fundraise - external financing - you put in the model (optional) is used to pay for the summary operating expenses over a period of time.
’

Product & Support Options

Model
 —  $74
USD

Model, downloadable immediately. One-time purchase, model updates are free. Free email customer support.

Get Started
 +  $295
USD

Everything included in model, plus the Get Started support option. 1 Hour of assistance in completing the model, customization and review. Focus is on structuring and adjusting inputs for your business, and refining unit economics, cost budget, financial statements, and financing strategy. Can be purchased separately later. Additional customization may be necessary depending on your business; to be determined and billed separately.

Custom Services
 —  Quote

I provide services for clients that need to build a model that’s customized for their business. A typical custom project is building a custom growth and revenue model to use with the Starter Model or Standard Model. Most projects are two to ten hours: by leveraging the financial core of the model and just building a new revenue model tab to replace the default revenue model, the custom work is kept to a minimum. I’ve worked on over 175 projects in the last 3 years, and I’m always happy to talk about what you want to accomplish. Contact me ›

   Buy

          

After you click on “buy”, you will be able to select which option you want. The video course and Get Started may also be purchased separately later.

Download immediately and anytime through the link in your email receipt.

We accept credit cards, debit cards, and PayPal. The transmission of your billing information is encrypted using secure socket layer technology (SSL/TLS) and will be processed by Gumroad. Foresight does not have access to your payment details (why it’s safe).

VAT, if applicable, is additional. Businesses with a valid VAT number can get a VAT refund after purchase.

You’ll get a payment receipt by email immediately after purchase. Note, you will see Gumroad, not Foresight, on your payment card or PayPal statement.

Terms and Privacy Policy apply on all purchases.

Get help buying. Call 1-646-770-0052.

Is this the right model for me?

Here are two options if you need a model with more detailed revenue forecasting - the Standard - or a free option with less detail, the Runway and Cash Tool.

Standard Financial Model

Standard Financial Model

$149 USD

The base model for entrepreneurs of all stages to create five year forecasts, with consolidated financial statements, funding forecasts, cap tables, and returns to investors. Prebuilt to handle many types of businesses, including ecommerce, SaaS, marketplaces, advertising businesses, subscription services, retail, hardware, hardware and subscription services, consulting businesses, apps, and mixtures of different business models.

See details ›

Starter Financial Model

Starter Financial Model

$74 USD

Good for pre-seed and seed stage entrepreneurs that want to create three year forecasts, with a hiring plan, cost budget, consolidated financial statements, and key reports. Does not include prebuilt revenue model, cap table, or valuation. This can be a great option for companies that have less data or clarity around their revenue projections, or want to easily build in their own methodologies for forecasting growth and revenues.

Buy ›

Runway & Cash Budget Tool

Runway & Cash Budget Tool

Free

A free model that provides the structure to create a hiring plan, cost budget, summary, and key reports. Good for entrepreneurs that want to create a cost budget, analyze their burn and runway, with the minimal amount of modeling.

See details ›

How do the Foundation models compare?

All Foresight models are built to solve for the same problem - creating a forecast for a business - but with different levels of detail, to acknowledge the needs of enterpreneurs at different stages. All models use the same core structure, making upgrading between models easy in the majority of cases. My general rule is to start with the model that has less detail - just enough to accomplish what you need - and then either build in what you need (all cells and formulas are unlocked) or upgrade to a more advanced model with more features prebuilt. Below are the key differences between the Foundation models.

Model Standard Financial Model › Starter Financial Model › Runway and Cash Tool ›
Price
USD
 $149 $74 Free
Time Scale 5 years 5 years 3 years
Cost Budgeting
Charts & Reports
Consolidated Financial Statements ›
Prebuilt Inventory Forecasts (optional)
Prebuilt Debt Repayment (optional)
Prebuilt Revenue Forecasts ›
Cap Table & Valuation
Historical Statements and Rolling Forecasts
Automatic Funding Forecasts ›

Frequently Asked Questions

Is this the right model for me?

Happy to help.

The forecast tools are all free tools that are built to handle specific kinds of forecasting, from wholesale sales and cash flow, or per-channel digital marketing and sales forecasts, to sales and inventories for ecommerce companies. They are not intended to be full financial models, but used appropriately can help you make important financial decisions about your business.

The base financial models are built to help an entrepreneur create financial projections for their business. The models provide an increasing amount of prebuilt detail and structure, from the Runway & Cash Budget Tool - the simplest - to the SaaS/Ecommerce/Services Models - the most complex - to help you find the right level of detail and structure you need in your forecasts.

The Standard is the best option for most businesses. The financial core contains all the details and reports necessary to build and present your financial model to executives and investors and make significant business decisions. The growth and revenue forecasts are prebuilt using the default revenue model, but the model also offers the Bring Your Own Model functionality to let use build or use your own revenue model with the financial core in the Standard.

If you need less detail - for example, if you’re an entrepreneur just getting started - then use the Runway & Cash Budget Tool (it’s free) or the Starter Model if you’re looking for the simplest, “Minimum Viable Model” for an entrepreneur to use to raise capital.

If you need more detail - for example, if you’re a SaaS, Ecommerce, or Services business and you need to model out lots of different subscription plans, SKUs, or projects - then the SaaS, Ecommerce, or Services modules / models would be the right fit. The Standard handles 1 “average” subscription, order, or project, and in most cases it’s still the right choice, but if you have a more evolved business and you need to detail each different plan, SKU or project that you offer, then you’ll want the more advanced models.

My general rule: start with the model that has less detail - just enough to accomplish what you need - and then either build in what you need or upgrade to a more advanced model with more features prebuilt. It’s usually easier and cheaper for you.

For a more detailed explanation, see how to select the right Foresight template ›

If you have questions, just email me at hello@foresight.is or call +1 646.770.0052 if it’s urgent.

How do I use the models?

Foresight’s models are Microsoft Excel™ files, and they are available for download immediately after purchase. You can also re-download them at any time in the future through your account on this site, and new versions are distributed to you by email for free.

The best way to use the templates is to first create a copy of the file you downloaded, rename it to something that makes sense to you, then open up the file in Excel or Google Sheets™, and start to familiarize yourself with how the model is structured. There are also a lot of explainers and how-to’s on this site under the Help section where I answer the most important and common questions people ask. But the models are extensively documented throughout, with notes and explainers on almost every line noting what the calculation is doing and it’s intent. The Outline sheet provides an overview of each sheet and a visual description of how the information is separated in the model and how the sheets flow together.

Then, start with the Get Started sheet(s) with the most important assumptions, and start filling in the inputs, which are clearly labeled. Then I typically start with modeling the operating costs to create a cost budget and an idea of predicted overhead expenses.

Next comes the revenues; with the Standard Model, start with the Get Started - Revenue Model sheet and use the labels to define the terminology you want to use in the default revenue model, then go through the inputs around growth channels, conversion and adoption, prices, and cost of sales. With other models, the structures are different, but the basic idea is the same.

By now, you’ll have a basic forecast, and now it comes down to looking at the Summary and Key Reports sheet(s) to see if the projections make sense: net income, top-line growth, margins, etc. And refining and iterating on the inputs until you get to a final result that makes sense for your business and your industry.

What software do I need?

Foresight’s models are Microsoft Excel™ files, and they are available for download immediately after purchase.

I recommend using Excel or Google Sheets™ for financial modeling, both in general and for Foresight templates specifically. In practice, I use Excel to build and edit models, and Google Sheets to share or collaborate with users. Excel is usually a faster platform for building models, but Sheets can be easier for sharing models with people.

Foresight’s models can be used in both Excel and Google Sheets interchangeably; simply upload the Microsoft Excel model template from Foresight into Google Sheets, and everything will work fine.

Additionally, Foresight is compatible with a few software platforms. See Recommended software ›

How long will it take to build a model?

It generally takes about an hour to go through the setup on the one (or two) Get Started sheets, the Revenue Model (Standard Model only), and input the operating expenses and hiring plan on the Costs sheet. Once you have a first draft of the model with the basic information, I find it takes another hour to adjust the inputs to create a set of forecasts that makes sense for your business, meaning the growth in revenues, gross margins, and net profit margins “make sense”.

If you are inputting past operational or financial data and creating rolling forecasts, or have a more complex business, it can take more time to get the added data into the model. If you are adding in a revenue model you’ve already built through the Bring Your Own Model functionality, the integration of the new revenue model is usually five to ten minutes. If you are creating your own revenue model from scratch, obviously the amount of time it takes is completely dependent on the complexity of your business, the level of detail you are modeling, and your own skills at spreadsheets and financial modeling.

Can I edit the models?

Of course! All formulas, cells and sheets are completely open, so you can edit anything to your liking. Each row on every sheet has a note about what that row’s calculations are trying to do, and many of the components are explained in the help files, so that you can see how I did it - and help you figure out how to change it to your liking.

How often are the models updated?

The models are updated no more than they have to, as changes can be disruptive to users. All purchasers get updates of new versions automatically by email, and the models come with Changelog sheets that describe the changes that happen in each model version. Most of the time the changes are new features that are optional for users to add.

Do you provide support?

Yes! You can email me anytime and I’ll try to respond as fast as I can. I’ve also spent a lot of time to build out the written and video documentation here on this site through the Help section, but I’m always happy to help. People say I provide good support, for what it’s worth.

Email support on how to use the models is free anytime, but I aso offer a 1 hour Get Started package which combines help on getting started using the model - walking through the inputs and struture with you on a phone call or screenshare, helping you set it up for your needs - and basic customization if necessary. This Get Started support can be purchased anytime: at time of model purchase or anytime thereafter. Details here ›

Do you build custom models?

Yes. I work with startups and investment funds, assisting with financial models for fundraising, capital planning, and market development strategy. I have experience from both sides of the table as a venture capitalist and a part-time CFO, and I’ve worked with thousands of companies throughout my career.

Most custom models I build fall under 2 areas:

  • Growth and revenue models to use with the Starter Model or Standard Model, leveraging the financial core of the model to keep the projects efficient and cost-effective
  • Complex cap table and waterfall models to help entrepreneurs and investors understand how the proceeds from transactions will be distributed.

I’ve built hundreds of custom models for business planning and financial analysis I’m always happy to talk about what you want to accomplish.

Contact me at hello@foresight.is or +1 646.770.0052.

Do you help with non-Foresight models?

Yes! I’m happy to take a look at your existing model and offer advice on how you can improve on it, or help you add in features or edits you need. I usually focus on how to make models more flexible, accurate, structured, and transparent. Contact me at hello@foresight.is.

Do you give workshops for entrepreneurs?

Yes! I’ve been a mentor at TechStars, ERA (Entrepreneur’s Roundtable Accelerator), AlphaLab, The Brandery, Launch Pad, and more accelerators, and I’ve worked with startups on product strategy, market strategy, financial projections, pitching, and fundraising. I love to teach entrepreneurs how to think about business strategy using the analytical processes that financial modeling builds, and I do in-person and virtual lectures, seminars, and one-day workshops on financial modeling for startups.

See Workshop Options ›

Do you offer bulk licenses?

Yes. For incubators, accelerators, and universities looking to purchase a model for a group of startups or entrepreneurs, bulk license purchasing is available at a discount. A license covers one model, and can be used for any of the startup financial models available (venture capital model is not available for bulk licensing).

See Bulk Licensing ›

Can I upgrade after purchasing?

Yes. If you find that you need more detail or structure from a more advanced model, you can apply your purchase towards a more advanced model. The structures are fairly consistent so it’s usually fairly easy to take any inputs from your existing Foresight model and use it in a more advanced model.

It’s a manual process for me to process an upgrade purchase, and I like to talk to you to make sure the more advanced model will be helpful for what you want to accomplish, so simply email me at hello@foresight.is to learn more.

Can I get a refund?

Sorry, but no. (Here’s why.) If you have any questions about the applicability of the models for your business or questions about the models, email me before purchase at hello@foresight.is so we can chat or schedule a demo.

After purchase, I generally offer exchanges, upgrades and downgrades to help you find the model that is the right fit for you. In all cases, just contact me.

Is payment secure?

Yes. We accept credit cards, debit card, and PayPal, and payments are handled by Gumroad. All transactions are TLS / SSL secured and no payment details are stored by Foresight (see here to understand the details behind our transaction provider, their security and how they never store payment details).

You’ll get a payment receipt by email immediately after purchase, and you can generate an official invoice through that receipt. Note, you will see Gumroad, not Foresight, on your credit card or PayPal statement.

Why am I charged VAT?

If applicable, VAT is additional to the listed product prices. EU law requires businesses, even US-based businesses, to charge VAT for digital goods sold to EU customers.

Businesses with a valid VAT number issued by any Member State of the EU can get a VAT refund after purchase. My transaction provider’s process for issuing a VAT refund is pretty simple; just click on the Generate Invoice link in your emailed purhcase receipt, enter your VAT number, and your invoice will be updated to show the VAT refund, and you’ll get the refund back to your payment method within a few days.

Questions?
Schedule a demo.

We’ll do a 15 minute screenshare or call to talk about your needs and walk you through the Starter Financial Model (or others) to help figure out the right solution for you.

Schedule a demo ›

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