Startup Library

Financial Model Template

Use this financial model:

  • To put numbers to or to quantify the ideas in your business model (BMC)
  • To test assumptions in your business model with numbers
  • To understand key consequences of assumptions on the viability of the business idea
  • To help you iterate your business idea with an even higher level of confidence
  • Is the business idea profitable and when? (Income statement or profit-and-loss statement)
  • Will I have timely cash flow to pay my short term obligations? (Cash flow statement)
  • What kind of financing is best for my business? What kind of financing can I get? Is my financial structure healthy? (Balance sheet)

The output of a financial model is used for decision making and performing financial analysis, whether inside or outside of the company. Inside a company, executives will use financial models to make decisions about:

  • Raising capital (debt and/or equity)
  • Making acquisitions (businesses and/or assets)
  • Growing the business organically (i.e. opening new stores, entering new markets, etc.)
  • Selling or divesting assets and business units
  • Budgeting and forecasting (planning for the years ahead)
  • Capital allocation (priority of which projects to invest in)
  • Valuing a business
Template 📄
Here’s a Financial Model Template that includes a cash flow statement, balance sheet and income statement. Leverage the power of how to model quickly by learning the most used shortcuts.