In this video, I explain the basic elements of a financial model.
- Formulas
- Inputs / Assumptions
- Outputs
The formulas within Excel or Google sheets are the framework. I prefer to build my financial models with Excel, because it provides a feature, that allows to lock and protect the cells, that contain formulas.
To build your financial plan, you need to define a series of assumptions, especially for marketing, revenue, expenses, personnel, and finance.
As a result, you get the three financial statements for income, cash flow, and balance.
Peter is a solopreneur in Salzburg, Austria, a husband, and a family father. He runs a little publishing company, and blogs about starting and running online businesses. In his spare time, he enjoys hiking with friends and reading the Bible, and sometimes he takes a trip in his roaring old black 2001 Jaguar XJ8.
