HOW IT WORKS
The Simple Model is a fully-functioning financial model that is intended to help entrepreneurs:
- Create detailed marketing plans and estimate viral user acquisition loops
- Estimate pricing plans, price points and estimate revenues
- Understand the key components of cost of goods sold (COGS) and selling, general and administrative (SG&A) costs behind the business
The Simple Model uses a mix of assumptions to estimate all revenue and cost line-items monthly over a flexible four year period, and then sums the monthly results into years for an easy view into the various time periods. You can easily set the start date and year for key decisions, and the model adjusts automatically.
Note: Please note that the model is not built for all types of businesses, and it will require customization. The revenue and cost estimates are only applicable for certain businesses, revenue models, products and cost structures. That said, the structure can be modified and adjusted to fit any business.
KEY FEATURES
Complete |
Simple |
Starter |
|---|---|---|
The most detailed and powerful way to create financial projections. Estimate every cost and revenue and outline your business. |
A detailed, powerful structure to estimate revenues and costs. Need a lot of details, but don't need financial statements? Use this one. |
NEW Your first model? Need to get started as quickly as possible to estimate your costs and revenues? Get started in minutes. |
| Multiple-sheet model to estimate cost items, marketing and user growth, and revenues over 4 years. Detailed estimates of hiring plan, multiple marketing line-items, and detailed operational costs. | Multiple-sheet model to estimate cost items, marketing and user growth, and revenues over 4 years. Detailed estimates of hiring plan, multiple marketing line-items, and detailed operational costs. | One-sheet model to estimate hiring plan, major cost items, marketing and user growth, and revenues over 2 years. |
| Detailed projections and full financial statements: income statement, balance sheet, and statement of cash flows. | Detailed projections and simple income statement, does not include full financial statements. | Streamlined projections, does not include full financial statements. |
| Full capitalization table allows you to project out multiple financing rounds in detail and estimate returns for each class of investor. | Simple income statement allows you to estimate and justify your funding needs. Does not include a full capitalization table. | Sources and uses of funds allows you to estimate and justify your funding needs. Does not include a full capitalization table. |
| Example revenue models include freemium, per-download, subscription, in-app transaction fees, and activity pricing. | Example revenue models include freemium, per-download, subscription, in-app transaction fees, and activity pricing. | Example revenue models include freemium, per-download, subscription, in-app transaction fees, and activity pricing. |
| Best way to build detailed financial projections with full financial statements. Save 60 to 80 hours compared to creating your own financial model. | Save 20 to 40 hours compared to creating your own financial model. | Best way to build your first projections quickly. Save 10 to 20 hours compared to creating your own financial model. |
