Imagine if you were pitching a Investor to get funding for your business – what would you tell them about your business model?
What business assumptions would you make about your profitability?
Even though you’re not going to show a Investor your financial model, this is a good exercise to go through no matter what.
Building out a financial model gives you the chance to really think about the details of budgeting, costs, revenues, etc.
Beyond that, it will also help you set expectations, brainstorm new product ideas, and set milestones and goals.
It’s super important to know what your revenue goals are for the next 1-2 years.
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