Create a financial plan that quantifies your vision
Now that we have created a story with our strategic plan, it is time to tell investors how you are going to generate revenue and show that you can deliver this in the near term. In this module we will explain what elements you should include when explaining your business model and other financial elements that you should be prepared to discuss with investors.
The first thing to keep in mind is that, as we explained in the previous module, our pitch deck is a concise document with the most important information. This also applies to our financial plan, so don't get lost in showing a lot of tables and numbers and focus on the key metrics of your business.
These key metrics are known as Key Performance Indicators (KPIs) and depend on the nature of the business. However, there are some standards KPIs investors might want to see related to all the drivers that influence the outcome. Here are the most significant ones, although not all of them necessarily apply to your business/industry:
|Revenues||Pricing, average order size, CAGR of revenue, churn rate, ARPU, Subscriber base, etc|
|Cost intensity||CAC, Fixed costs over revenue, COGS, Capex, Net working capital|
|Profitability||LTV, EBITDA margin, EBIT margin|
Additional material: Financial Model template Download