In Phase 3
you developed a simple cash flow statement, and the annual overview was also integrated in your teaser.
Do one quick check on your cash flow statement: reduce your revenue by 50% and see what happens to your liquidity. Most entrepreneurs underestimate the time it takes to scale revenues — especially in the case of B2B sales. So make sure that you invest enough into marketing/sales and keep costs under control.
There is not much more to be done in this step. However, be prepared for the fact that some investors will want to see your planning file to understand your assumptions, the monthly details, etc. Make sure this document is clean and intelligible to an outsider.
Last but not least, we strongly recommend showing the spreadsheet to an experienced CFO, CEO or investor. Ask them whether the calculations and assumptions make sense to them, whether you forgot any major cost blocks, and whether they feel that the big picture looks right.
Some investors and advisors (especially ones with a financial background) will tell you that your CF planning is too rudimentary, and that they want to see a forward-looking P&L, balance sheet, scenario planning, etc. We have seen this play out many times: after a few iterations you have a financial model that may be much more “correct” from an accounting perspective, but becomes too complex to update on a monthly basis and to test hypotheses with. In most cases you are worse off at the end. So our strong recommendation is to keep it very simple, but iterate and update constantly based on the latest insights. (You can easily tell overzealous investors to come yell at us if they don’t agree.)