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Part 3, Financial modeling: Forecasting

Top takeaways

  • Use your financial forecast to determine if your projected revenue, expenses, and cash on hand are enough to break even or if you risk falling short.

  • Use ‘best’, ‘base’, and ‘worst-case’ scenarios to see how different growth paths shift your financial status.

  • Let your financial forecast guide key decisions such as when to invest in the team, raise funding, adjust prices, or reduce costs to extend your runway or achieve profitability faster.