Preparing a long-term financial plan for startups is absolutely possible and helps the startup define the most profitable strategy from the early-stages. A good knowledge of market dynamics and strong vision of the founders help make this a reality.
All financial projections that the team may have prepared is helpful in defining the cost structure, but in all cases financial plans will be prepared from scratch. To start, we will have a call to look into the business model. After performing market research, competition analysis, product life cycle analysis, we’ll have additional calls to review the market size and targeting strategy, pricing, inventory orders (if applies), staff, operating costs and investments. You can review this for about 2 weeks/1 month to ensure it reflects your strategy. The financial plan will also include user metrics and breakeven analysis, an integrated balance sheet and cash flows, graphs and an automatic overview funding needs. The financial plan will include one scenario. The file is user-friendly, can be updated automatically when market entry dates change and is adapted to your brand – so if you submit your colour palette, you can easily copy tables and graphs directly into your reports.
Estimate financial plans can also be prepared with little information for an investor wanting to value portfolio holdings. Discounts are available for large portfolios.
A startup valuation (Calculation Engagement) can be carried out and delivered in a pdf report. The report is also suitable for a 409a valuation. First, the financial plan will be adjusted for all known startup risks, in order to be able to compare the best-case with the realistic case scenario, which enables you to deliver a neutral opinion about your financials, market and return expectations to investors, as the file will not be editable. Different valuation methods are used, including DCF, exit value, replacement value, seed stage and/or VC valuation methods and others. Changing market conditions and trends are assessed. At the end, we can take into account dilution and investor conditions into your post-money valuation and connect the valuation to a specific financing and exit strategy.
Please get in contact if you want to set up a free call to view templates through screen-sharing.