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Objective: A basic P&L usually doesn't tell the whole story of what is happening with your company. For example, if you missed your revenue target, you will want to investigate whether the miss was due to churn, lower average order value, and/or new customer acquisition issues. This P&L template enables us to track our business at a level higher than what a basic P&L would allow. It also helps us answer common questions that many venture investors will ask such as:
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Question 1
How many people are you hiring and when?
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Question 2
When do you first get paying customers? (or should we assume nobody will pay for the next 12-18 months)?
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Question 3
How much are you budgeting for sales and marketing tests, knowing that we can be unsure of their performance?
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Question 4
How many months of runway does this imply?
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Additional Context
https://blog.blingcap.com/financial-model/
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Steps To Build Your P&L
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Step 0: Fill out Inputs Below
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Model Start Date*3/1/2025
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Current Cash Balance$320,000
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Date of Equity Financing Raise*4/1/2025
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Target Equity Financing Amount$1,200,000
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Step 1: Build The Hiring Plan
Fill out hiring plan tab, only cells highlighted in yellow
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Step 2: Build The Revenue Plan
Fill out revenue and COGS section of the P&L tab, only cells highlighted in yellow
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Step 3: Budget in Operating Expenses
Fill out operating expenses section of the P&L tab, only cells highlighted in yellow
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Outputs
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Question 1Hiring Plan
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Question 2#N/A
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Question 3
We will be spending an average of $2000 per month on sales and marketing over 24 months.
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Question 4Check Inputs
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Month 6Month 12Month 18Month 24
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Month8/1/20252/1/20268/1/20262/1/2027
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Paying Customers5204065
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Projected ARR$30.0K$192.0K$384.0K$624.0K
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Monthly Burn (Net of Revenues)$74.4K$71.0K$56.0K$37.8K
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Cash on Hand$1.3M$811.0K$434.8K$152.3K
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Runway171184
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Cumulative Cash Consumed$263.7K$769.3K$1.3M$1.8M
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