A quality model of any type includes a set of assumptions. Resources and energy should be focused on researching those assumptions which are most likely to impact your critical outcomes, and managing how much variability exists in your model. Startups especially benefit from knowing which assumptions are critical because they are rarely operating with reliable historical data. We detail the probability (or likelihood) of different outcomes, allowing the startup and potential investors to quantify appopriate levels of risk. Sensitivity Analysis can be done on an existing model or as part of a model created by First Steps Consulting A typical deliverable includes; - Best Case, Worst Case and Base Case Scenarios- Tornado Graphs of Variability for each Assumption - Monte Carlo Simulation for determining Outcome Probabilities |
Simplified Example of a Quantrix Startup Financial Model Example of a Flash Dashboard Financial Projection |