Investor Deck
Projected Financials
This section outlines the startup's financial forecasts, including projected revenue, expenses, profit margins, and cash flow for upcoming years. It provides a forward-looking view of the company's financial trajectory based on current business plans and market conditions.
SECTION
Traction and Validation (Highly Influential)
IMPORTANCE
10
/10
Projected financials are essential for investors as they illustrate the startup's growth potential and financial planning. They help assess the feasibility of the business model, the expected profitability, and the return on investment.
WHAT SHOULD BE INCLUDED:
Revenue Projections: Future revenue forecasts based on market analysis and sales strategies.
Expense Forecasts: Estimated future expenses, including costs of goods sold, operating expenses, and capital expenditures.
Profit Projections: Expected profit margins and net income, showcasing the profitability potential.
Cash Flow Projections: Anticipated cash flow statements to demonstrate financial health and liquidity.
Break-even Analysis: Point at which the company expects to start making a profit.
TIPS
Realistic Assumptions: Base your projections on realistic and justifiable assumptions about market conditions, growth rates, and business capabilities.
Scenario Planning: Include best-case, worst-case, and most likely financial scenarios to address uncertainties and show preparedness.
Detailed Justifications: Provide clear explanations for the numbers projected, including the reasoning behind growth rates and expense increases.
EXAMPLES
Tesla: Often presents ambitious yet detailed future financial projections that include revenue from new products and expansion into new markets, supported by strategic initiatives.
Amazon: Provides projections that factor in continued expansion in their core markets and investment in new technologies like AI and cloud computing, showing how these contribute to expected growth.
Zoom: During its rapid growth phase, projected financials that considered increasing demand for remote communication solutions, which helped investors understand the scalability of its revenue model.