Why It’s Okay to Tell Your Investors That You Don’t Have a Clue

Why It’s Okay to Tell Your Investors That You Don’t Have a Clue

Of all of the misconceptions about startup life, I think the most profound—and ultimately damaging—is the myth of the savior leader: the magical CEO who creates the perfect product/service and business model that erupts into a runaway success. The cold, hard truth is that it takes both time and much iteration before most entrepreneurs get it right.

Startup Financial Modeling, Part 4: The Balance Sheet, Cash Flow and Unit Economics

Startup Financial Modeling, Part 4: The Balance Sheet, Cash Flow and Unit Economics

In the first three articles in this series, we looked at the big-picture motivation for startup financial modeling, why it’s important to start with your assumptions, and how to practically build your income statement and custom detail tabs. Today, we’ll finish off the series by examining how to construct the final components necessary to complete your model, including a quick discussion of unit economics and how to best keep your model updated.