5 assumptions that make or break your startup financial model
Your financial model is only as good as the assumptions behind it. Get them right and you have a tool for making decisions. Get them wrong and you have a spreadsheet full of fiction. After watching hundreds of startup models, the same five assumptions trip up founders over and over. Here’s what they are, why they matter, and how to get them closer to reality. 1. Fully-loaded cost per employee Most founders model headcount using base salary alone. That’s a problem. Salary is typically only 60-70% of what an employee actually costs you. ...