Early-stage product startup financial model
A complete financial model for a product startup with four distribution channels
"Coolest Product Ever" sells its product via four distribution channels: Online, Events, Sales Reps, and Wholesale.
- There are four marketing strategies for the online distribution channel: digital marketing, social media marketing, influencers, and podcasts.
- The wholesale channel uses a salesforce to secure distributors.
The company uses a third-party fulfillment system and has limited warehouse operations.This model contains the following:
1. Monthly revenue projections for each distribution channel.
A. Online distribution.
C. Sales reps
2. Monthly variable and dynamically determined operating costs.
3. Yearly salaries and overhead costs.
4. Monthly working capital and fixed asset projections.
5. Annual income statement, balance sheet, and cash flow statement.
6. Valuation and funding needs.
7. Break-even analysis and financial summary.
8. Customer acquisition costs for each revenue stream.
Victoria Yampolsky, CFA, is President and Founder of The Startup Station, an educational and consulting company specializing in modeling and valuing early-stage ventures. Victoria helps early-stage founders master the necessary finance skills to evaluate the financial feasibility of their business models, translate them into comprehensive and actionable financial plans, and use those plans to gauge the effectiveness of their strategy. Since the launch of The Startup Station's educational program, more than 1,000 founders have completed the curriculum and learned the basics of financial modeling, valuation, and startup financing.
Victoria is an advisor to DreaMe, Opkix, and Stringflix, as well as a founder of several ventures in media and entertainment. Previously, Victoria worked for Deutsche Bank and was a technology consultant with CapGemini's Financial Services Division. Victoria holds a Bachelor's Degree, Cum Laude, in Computer Science, with a minor in Mathematics, from Cornell University and an MBA, with honors, from Columbia Business School. Victoria is also on the Advisory Board of the Computing and Information Science (CIS) Department of Cornell University.