When approaching investors, a pitch book is not sufficient. Founders need to justify their vision for their business in numbers. How much can my company grow? What is the revenue making potential of my business? All these questions need to be answered through a finance model. Building a finance model from scratch requires understanding of entrepreneurial finance and accounting basics. This FundEnable course provides you a holistic understanding of these concepts and teaches you to build a finance model step by step. You will also get access to the FundEnable Finance Model template which you can customize according to your business.
Looking for more assistance to build your finance model?
FundEnable Finance Model Template
Simplifying creation of finance model
100% editable finance model template with pre entered formula & dashboard for entering business specific datamap
Generate forecasts of income statement, balance sheet & cash flow statements basis inputs
Available in Excel format with 12 sheets & a sample finance model for reference
The FundEnable Takeaways
Learning Outcomes & Finance Model Template Utility
Understand entrepreneurial finance and accounting basics required to create a finance model
Learn to build a finance model step by step in accordance with your business needs and stage of investment
Get access to FundEnable Finance Model Templates which include cashflow statements, balance sheet, PnL, revenue, assets and many more customizable sheets
Unlock Online Learning & Finance Model Template
Earn a Linkedin Shareable Certificate on Completion
A collection of business fundraising essential resources. It contains 12 online courses providing a 360º understanding of the fundraising process along with 8 templates that are 100% customizable according to business needs.
The process remains fairly the same for service industry. The basic process is to break down the revenue calculation as much as possible to have the assumption of a reasonable sale. It has to be deduced using some logic. For instance, If you have an app business, you may want to assume your revenue, based on the increase in subscriber count or any other element of revenue you find is relevant.
What is the difference between work In progress and inventory?
The inventory indicates the value of the finished product which is ready to sell. Whereas WIP indicates the value of the unfinished products
The value includes all the direct expenses which are required to make the product ready to sell like Raw materials, direct labor, accessories, etc. The inventory indicates the value of the finished product which is ready to sell. Whereas WIP indicates the value of the unfinished products
The value includes all the direct expenses which are required to make the product ready to sell like Raw materials, direct labor, accessories, etc.
If the company is making a loss then how much will investors invest and how will they expect returns?
Most of the startups would be loss-making in the initial phase. Investors would want to see an increasing trend year-on-year. So even in the example that we have taken, the first year is a loss of 43 Lakhs, followed by a further loss of 62 lakhs, but in the third year, the scenario has changed as they have made a profit of 5 lakhs. Even though 5 lakhs is not a huge profit, compared to the previous 2 years, it is a huge jump in the profit. Investors would like to see such an increasing trend momentum in a company.
How to put the value of intangible assets in the Balance Sheet ?
If it is an intangible asset that you have purchased from the market, then the purchase price that you paid for it becomes the value of the product. For example, if you purchased software for 10 Lakhs, then you can show that software as your intangible asset with a value of 10 Lakhs. You can consult your CA to get deeper clarity on the accounting of Intangible Assets.
Do you have a Financial Model for a B2B Marketplace?
The Financial Model provided is a standardized model that is applicable to all kinds of businesses. You will have to tweak a few formats of estimations (which are already discussed in the videos). Apart from that, the base remains the same for all sectors.
Terms & Conditions
Kindly download the entire T&C document by clicking here T&C.pdf
It is strongly recommended that users read the T&C document while purchasing the FundEnable Toolkit.
We Will Keep You Posted!
Add your email to the mailing list to get the latest updates.
We suggest moving this party over to a full size window.
You'll enjoy it way more.
