Standardization of start-up Financial Models and Reporting

A quick thought: after trying to standardize (or at least normalize) things such as investor pitch decks and board presentations (yes, still more to do here), it seems that a start-up’s financial model is the next logical target.

Every company needs a balance sheet, P&L, cash flow statement; every company has employees and expenses; every company needs to get to revenue on top of a coherent revenue model; all revenue models have fundamental drivers that are core to the motions of the business itself. All that said, the way that start-ups characterize their past financial information as well as how they model, characterize and communicate their financial future ALL VARY DRAMATICALLY.

I believe it’s time to put some best practices into play and bring some consistency to how start-up folks model and communicate their financial past, present, and future. stay tuned.


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