Financial Modeling for Entrepreneurs
Skills: venture capital, entrepreneurship, financial statements
About the Class
Yes, financial models are always wrong. But it's important to create one anyway. Creating a financial model is less about being right or wrong, and more about going through the process of detailing how a business “works.” The result - a set of financial statements, key operational metrics, and a set of key drivers and assumptions - creates a map for to explore how tactical product, marketing, organizational, and strategic decisions impact a company’s profitability. Such a model will help determine key milestones, capital needs, and types of potential investors.
We'll focus on building financial models in Excel. Students will learn how to turn the business model from a mental to a financial model by building out assumptions, costs, revenues, and financial statements using structured approaches. You will receive a template financial model to use in class and beyond. You are not required to bring a laptop, but having a laptop to use in-class will maximize the value of the class. Students are expected to have a familiarity with basic finance and a passing familiarity with Excel.
