Example
Input prompt
I need help creating a financial model for my SaaS startup to show investors. It's a subscription business with pricing from $50-$250/month, and I expect 200% ARR growth. I need funding to cover expenses like development and marketing. Please build a model with key details, projections and valuation analysis.
Result from enhanced prompt
Financial Projection Model for B2B SaaS Project Management Startup
Key Assumptions
- Subscription business model with monthly and annual plans
- Pricing: $50-$250/month/user based on features and billing frequency
- 200% YoY ARR growth target for next 3 years
- $3M Seed funding round to cover next 18 months
- Main expense categories:
- Product development
- Cloud hosting
- Sales & marketing
- G&A
Revenue Build
- Detailed monthly revenue projections driven by:
- New customer adds
- Expansion revenue from existing customers
- Churn
- ARPU and pricing trends
- ARR, MRR and total revenue by month
- Cohort analysis showing revenue retention
Expenses & Hiring Plan
- Monthly headcount and salary assumptions by department
- Cloud hosting costs based on usage projections
- Sales & marketing spend as % of revenue
- Other key expenses as % of revenue
- Capitalized vs expensed R&D
P&L Forecast
- Monthly P&L projections for next 3 years
- Revenue, COGS, Gross Profit, OpEx, EBITDA, Net Income
- Gross Margin %, EBITDA % and other KPIs
- Annual P&L summary
Cash Flow Forecast
- Monthly cash flow projections
- Cash receipts and disbursements by category
- Runway analysis based on cash balance and burn rate
- Funding need and uses of capital
Balance Sheet Forecast
- Projected balance sheets by month and year
- Working capital and capex assumptions
SaaS Metrics
- CAC, Payback Period, LTV, LTV/CAC
- Gross Revenue Retention and Net Revenue Retention
- Recurring Revenue %, Gross Margin %, R&D as % of revenue
- Sales efficiency and magic number
Valuation & Returns
- Valuation range based on comparable company multiples and DCF
- Investor ROI and IRR analysis
- Dilution and ownership % over time
Sensitivity Analysis
- Impact of key assumptions like growth, churn, ARPU on valuation
- Upside and downside scenarios
- Break-even and profitability timing
The model will include detailed tabs for each section above, with monthly projections, assumptions clearly laid out, and summary sheets with key charts and metrics. It will be built to allow for easy scenario modeling.
Let me know if you need any other details as I build out the full model! I'm happy to walk through it in more detail once complete.
