Business Model Forecast is a simple and powerful financial tool for startups. We designed it to help entrepreneurs building easily great financial forecast, because we believe that financial planning takes an important part in modeling a new business and lauching a startup. As a result we thought it was essential that any entrepreneur should be able to build a financial plan. That’s why we decided to build and share Business Model Forecast for free! We hope it will help you to build a great business.
Business Model Forecast is really easy, but we thought it could be useful as well for most entrepreneurs to have some explanation on how to use it! So let’s find out how to start with Business Model Forecast!
As you will notice, Business Model Forecast is an excel spreadsheet with 7 tabs. The first tab called “About” gives you some basic information on the tool. Other tabs are where the real job is done!
The “Revenues“, “Human Resources“, “Expenses“, “Investments” and “Financial Resources” tabs are where you will have to fill-in information (hypotheses) about your business to build your financial plan. This is where you have to start. There is no real best order to fill-in these tabs. You can start by filling-in these tabs from the left (Revenues) to the right (Financial Resources), but it’s mostly up to you. For more information on how to fill-in all these tabs, just click on any of the previous link to get more detailed explanations (or go back to this page : http://www.businessmodelforecast.com/help/).
The “Dashboard” tab is where Business Model Forecast will calculate the financial planning with all information you will have previously filled-in in the other tabs. This is where the “magic” happen! The Dashboard tab is the most important tab, as it will give you all forecast information to help you build a great business model and a great strategy. For more information on how to analyse the Dashboard tab : http://www.businessmodelforecast.com/how-to-analyse-the-dashboard-tab/
So, to start with Business Model Forecast, you should off course start by filling-in all your hypotheses about your business in the “Revenues“, “Human Resources“, “Expenses“, “Investments” and “Financial Resources” tabs. Then you will have to analyse all results in the “Dashboard” tab. These results will almost always show you things that will require you to iterate in the building of your financial plan. Financial forecasting is a necessary part for building any great startup, because this is the cash modeling of a business. Hence, modeling the financial forecast of a startup will show you impacts of your business model and strategy hypotheses.
That’s why you will have to iterate multiple time to build your financial planning. You will have to update your hypotheses and then analyse again and again results, until you believe your financial plan helped you to validate the long-term profitability of your business model and the relevancy of your strategy.
Now, you should have understood the overall operating on Business Model Forecast! Pretty simple, though!