Why do you need a financial model?

There are 2 main reasons for a financial model..

1. Making better business decisions

2. Fundraising and communicating to potential investors

The financial model is the key corporate decision-making tool and an essential part of your fundraising strategy.

A good model can tell you more than this though, such as;

• What happened in your business in the past

• A health check of the business today

• What will happen in the future, if you execute on your plan

• What the true drivers are of your business

• What changes your business is most sensitive to

• How much you need to sell to be profitable

• How much funding is required from investors

• What happens under different scenarios

• What valuation you can command

In other words, it's very important!