Step 3

Growth and Financial Forecasting Model

Develop a 36 month growth and financial forecasting model.

A growth model represents the growth mechanics and growth plan for your product. It is a model in a spreadsheet that captures how your product acquires and retains users. 

A financial model represents the revenue, fixed and variable costs, and profits that are anticipated based on the number of your users and the mechanics of your revenue streams.

If you create a growth model and a financial model separately, you can link them together by using the number of users from the growth model as inputs to the financial model. And remember to keep your assumptions as variables so you can tune them and see how your forecast changes.

Look at this sample growth and financial model as an example to get your started.