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1 |  | PRIORITIZATION AND EXPERIMENTATION TEMPLATE | Powered by | Kromatic.com | |
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3 | Financial Modeling | ||||
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5 |  | I know - financial modeling can be intimidating. But financial modeling shouldn't be scary or hard! This spreadsheet is a basic example used in our Innovation Accounting Program to explain the difference between a traditional financial model and a Hypothesis-Driven Financial Model. A Hypothesis-Driven Financal Model can be used to predict your future impact and to set "Pivot or Perseve" conditions for your innovation project. It's Creative Commons, so feel free to make a copy and explore! | |||
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7 | Tab | Purpose | Color | Meaning | What should you do? |
8 | READ ME and Constants | You are here! This tab gives you a basic overview of the spreadsheet, and there's a color code to the right. | BLUE TEXT | Manual Input | You should be putting data in that box |
9 | Traditional Financial Projections | This tab shows what financial projections typically look like. Click on each cell with blue text and notice that many of the numbers in future years are just direct inputs, which means someone has predicted revenue of $5,000 in Q4 2025. How do they know this? What evidence do they have? How can it be tested? This type of financial projection is based on guesswork that is untestable. | BLACK TEXT | Calculated Value | Hit undo if you just typed something in this box. |
10 | Example Hypothesis-Driven Financial Model | This is the first example we cover in our Innovation Accounting Program. The model and predictions are based on a small handful of critical variables. You can adjust each one and see how it impacts the future. | GREEN TEXT | Linked Cell | Hit undo if you just typed something in this box. |
11 | Worksheet | This is a very basic template if you are just getting started and you are not comfortable with spreadsheets. It follows the example we use in our Innovation Accounting Program. WARNING: We recommend you start from a blank sheet for your own model - this template won't work for your innovation project unless it's exactly the same type of business! | |||
12 | Example * | There are additional examples of simple, hypothesis-driven financial models in various contexts such as including market sizing, fixed costs, nonprofits, and marketplaces. Use them for inspiration or a starting point for your own model. | |||
13 |  | Powered by Kromatic.com |  | Financial and Impact Modeling Template by Kromatic is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. | |