Getting Started

Here's an overview of how the Startup Virtue model is structured and how to get started.

1. Copy to Google Drive

Startup Virtue is a Google Sheets™ file that you can copy to your Google Drive immediately after purchase. Within Google Sheets you have the option to download to Microsoft Excel. Since the model is built in Google Sheets, the default formatting is better in Google Sheets. In Excel, you may want to adjust the row spacing, fonts and chart formatting to get the appearance you want. Regardless of the platform you use, the calculations will work the same.

You can always recopy the latest version of the model via your original email receipt (the link provides access to the latest file) or by logging into the transaction provider, Gumroad (If you do not have an account, simply create one with the email address you used to make your purchase and you will be able to access the file from there).

2. Guidance

The Guidance page includes step-by-step instructions to setup, assess, refine and finalize your model. If you have any questions, please contact me.

3. Formatting

Startup Virtue is designed to allow users to create a complete financial projection without entering a single formula. All you need to do is plug your assumptions into the input fields and dropdown menus, all of which are blue. Calculated fields are grey or have no background color and should not be changed.

As you make changes to the blue fields, you will notice some rows or entire sections in the model will become "greyed-out" because they are no longer applicable. For example, in the image above, the Tier 3 pricing is set to "Inactive", causing the text for other Tier 3 to appear grey. This conditional formatting is designed to clearly indicate which inputs will (not) have an impact on outcomes.

The model includes extensive notes throughout to indicate what each input or calculated field is doing. You may the delete the note for stakeholders; however, notes are a critical element in any quality model because it allows users to understand the assumptions and process behind your projection.

Any numbers or options included/selected within the model are illustrative and should be updated to align with your business.

4. Structure

The Startup Virtue model is made up of 14 tabs that are divided into three sections:

Planning tabs:

• Start Here - This tab includes a brief into, legal disclaimer and table of contents.

• Assumptions - The majority of inputs and settings are included in this tab. Fill out the blue boxes in the relevant sections of the model (see Formatting above).

• Hiring Plan - Create a hiring plan by entering positions, annual salaries (in thousands), and start months for each employee.

• Financing - This tab details how much cash you will need to maintain a healthy cash position. There are options to input fundraising rounds, set loan terms and evaluate a possible exit and return on investment.

Analysis tabs:

• Custom Calc - Customize your projections by inputting your own actual or projected sales figures. Values entered in this tab will flow through the rest of the model.

• Dashboard - See a visual representation of your company performance with charts and scorecards displaying key metrics. Reformat this tab with your own colors and branding.

• KPIs and Metrics - Take a deep-dive into your best/worst case scenarios, unit economics, and key performance indicators.

Presentation tabs:

• Pitch Deck Slide - Customize a financial table for your specific audience. Adjust the level of detail by expanding and collapsing rows and columns.

• Monthly (Detailed) Pro Forma - See a detailed, monthly view of your financial statements

  • Income Statement

  • Cash Flow Statement

  • Balance Sheet

• Annual (Presentation) Pro Forma - See a rolled-up, annual view of your financial statements. Copy and paste these tables directly into your presentation materials.

  • Income Slide

  • Cash Slide

  • Balance Slide

5. Before you build your model

I recommend taking a step back before you dive into the model setup. Write down what you want to accomplish, as well as key inputs and outputs you want to reflect in the model. This will serve as a guide you can revisit as you enter your assumptions.

Once you get started, I recommend spending about 2 hours entering your initial assumptions. Start with a set of baseline assumptions given your understanding of the business and comparable metrics from similar companies.

6. Iterate, iterate, iterate

After you've moved through the Assumptions and Hiring plan tabs and you have a base revenue and expense forecast, it's time to start iterating. You may find that the initial projection is way different than you expected. This is very common. Move back through the planning tabs to refine your assumptions until the model reflects growth, revenue, margins, and cash needs that align with your expectations for business planning and fundraising.

7. Prepare the model for investors and partners

Startup Virtue is designed to be shared but you will likely need to be strategic about what and how much you share with stakeholders. I always recommend sharing static copies (screenshot or PDF) of the presentation tabs with new investors or partners so they can get the big picture first. From there, you can give them an opportunity to explore the planning and analysis tabs to understand the projections in detail.

Please make your best judgement on what information to share with external parties based on your specific situation.

Need support?

I'm happy to take a look at your model at any stage in the process. I've worked with hundreds of founders and startups and I'm here to help answer questions about technical Excel issues, financial accounting, business modeling, key metrics, fundraising, investor pitching, and more.

• Guidance. The guidance page is the best place to get step-by-step guidance on building your model. I'm constantly updating these instructions to address questions I receive from users.

• Support. Contact me with any questions or concerns. I'll do my best to respond promptly. If needed, I'm happy to take a look at your model to make sure you are using it correctly for your situation.

• Customization. If you have a unique business model or simply want to create financial projections ASAP for an upcoming investor pitch, contact me for a quick call. I've built hundreds of custom models for a variety of businesses, from SaaS, ecommerce, digital media, IoT, marketplace, and more. I can help you quickly create a comprehensive financial presentation to secure the funding you need. Learn more about custom models.

• Integration. If you have an existing model that you would like to incorporate into a Startup Virtue format, contact me. I often encounter founders who have a home-grown model that forecasts basic, top-line numbers (sales, revenue, expenses, cash position, etc.) but they want their model to express those projections as a pro forma (Income, cash, and balance statements). I'll take a look at your model and determine they best way to make this happen.

That's it! You're ready to enter your starting assumptions. Or head back to the Guidance page.