Questions? Let me know in the comments happy to discuss. 🚀 Also, if you want to learn how to systematically scale your startup without ending up as one of the 90% of startups that fail, check out my free training webinar ⇒ www.ericandrewsstartups.com/financeforstartups
Outstanding and useful information! Exactly what my team and I are looking for as we are at the phase of getting our MVP to market by the end of this year. You have a new follower and fan in me. Again, thank you so much!
Thank you very much, Eric! This is really valuable content and rare to find - I would suggest creating a new version for the new gen of social networks based on a subscription business model perhaps. Keep up the good work 💪
thank you Eric, as always simple and straightforward I really appreciate your efforts! Have a question, I’m building a financial model for social media platform, and yours is very helpful but my concern is that as first year they didn’t do any advertisements and all users come from the word of mouth. What should we do in this situation?
Just create a projection where you have users coming in unpaid. You can just create hard-coded assumptions for that, so maybe you starting month you have 500 users. You can have some logic that shows how new users are growing (let's say X% per month growth off the prior month) and also with the user drop-off. That would be the only difference in the model, everything else is the same.
This is an excellent template and guide. I used this as a base to build a financial model for an interview process and it turned out great. Thank you Eric and good luck!
To say thank you is an understatement. You boosted my career soo much. 2 questions, please. Should I indicate cash spent on developers of the software platform as capital expenses or a normal expense? I asked because now the more software is developed the value grows. The second one is a suggestion, not a question. Would you consider building a real estate financial model, typically for an investor considering building/buying apartments and sell/rent them out to make a good return. Typically an investor wants to assess the viability of the project given prevailing market rates for rent/selling price. Thank you. I loooooove your videos alot.
Hey stanley - really great to hear that feedback from you, it really means a lot and I'm so happy to have helped you in your career 😃. So - that's a great question and one that comes up a lot. While in the past a lot of companies capitalized the payroll from developers, what is now becoming more common is to just expense their salaries as a normal expense. Software changes so quickly that just expensing their salaries ends up being more accurate and cleaner than capitalizing them. I generally avoid capitalizing when I'm working with startups. Hey in terms of the real estate - I will think about if I could make an interesting video. I'm not really a real estate expert but I could probably come up with something, will put it on my list....thanks for the suggestion and appreciate the support!
Hi Eric Thanks for the link, I have previewed them, but the startup I am planning is a high end digital postproduction setup. Once again thanks in advance
Sure. Any business is built on the same fundamentals. Just need to figure out how your marketing works, how your sales work, and how your COGS work - and then add the fixed costs on. Just give it a try!
Questions? Let me know in the comments happy to discuss.
🚀 Also, if you want to learn how to systematically scale your startup without ending up as one of the 90% of startups that fail, check out my free training webinar ⇒ www.ericandrewsstartups.com/financeforstartups
Most underrated video. Thanks Eric.
Outstanding and useful information! Exactly what my team and I are looking for as we are at the phase of getting our MVP to market by the end of this year. You have a new follower and fan in me. Again, thank you so much!
My pleasure glad it was what you needed 🙌
Thank you eric, looking forward to your future videos. 👍
Hey Faizan ! Appreciate it - comments like this keep me motivated to keep going!!! Cheers
man this is so awesome! for once in my life....UA-cam algorithm worked in favor of me...immediately subscribed.
Awesome, thank you Happy cloud, really appreciate it!
Love these videos man, keep it up.
Thanks Tyler - glad you like them! Will be publishing a lot this year....so many ideas. Appreciate the comment!
Thank you very much, Eric! This is really valuable content and rare to find - I would suggest creating a new version for the new gen of social networks based on a subscription business model perhaps. Keep up the good work 💪
thank you Eric, as always simple and straightforward I really appreciate your efforts!
Have a question, I’m building a financial model for social media platform, and yours is very helpful but my concern is that as first year they didn’t do any advertisements and all users come from the word of mouth. What should we do in this situation?
Just create a projection where you have users coming in unpaid. You can just create hard-coded assumptions for that, so maybe you starting month you have 500 users. You can have some logic that shows how new users are growing (let's say X% per month growth off the prior month) and also with the user drop-off. That would be the only difference in the model, everything else is the same.
This is an excellent template and guide. I used this as a base to build a financial model for an interview process and it turned out great. Thank you Eric and good luck!
I love to hear that, cheers!
This is amazing! Thanks for sharing!
To say thank you is an understatement. You boosted my career soo much. 2 questions, please. Should I indicate cash spent on developers of the software platform as capital expenses or a normal expense? I asked because now the more software is developed the value grows. The second one is a suggestion, not a question. Would you consider building a real estate financial model, typically for an investor considering building/buying apartments and sell/rent them out to make a good return. Typically an investor wants to assess the viability of the project given prevailing market rates for rent/selling price. Thank you. I loooooove your videos alot.
Hey stanley - really great to hear that feedback from you, it really means a lot and I'm so happy to have helped you in your career 😃. So - that's a great question and one that comes up a lot. While in the past a lot of companies capitalized the payroll from developers, what is now becoming more common is to just expense their salaries as a normal expense. Software changes so quickly that just expensing their salaries ends up being more accurate and cleaner than capitalizing them. I generally avoid capitalizing when I'm working with startups. Hey in terms of the real estate - I will think about if I could make an interesting video. I'm not really a real estate expert but I could probably come up with something, will put it on my list....thanks for the suggestion and appreciate the support!
Incredible content!
Subbed :)
All the best ahead
Cheers manthan!!
Wonderful content sir !
Thanks Azhar - glad you're finding it valuable!!
Thanks Eric for this incredibly helpful video!
You are very welcome
Great Content! Thank You!
Wow thank you so much. I am building a social network startup and this has been immensely helpful🔥
You are very welcome, good luck!
Hi victor... I would like to connect with you
Awesome video and detail
Thanks!!
Hi Eric
Thanks for the link, I have previewed them, but the startup I am planning is a high end digital postproduction setup.
Once again thanks in advance
Sure. Any business is built on the same fundamentals. Just need to figure out how your marketing works, how your sales work, and how your COGS work - and then add the fixed costs on. Just give it a try!
Eric -- would you recommend using the average users between the end of the current month and the end of the last month to calculate revenue?
Thanks Eric
You're welcome!
Eric let me tell u that ur a superstar and what u doing is so amazing, really thank you for your full explanation and efforts 😃
You are very welcome 😎
Good day sir. Why is accounts receivable subtracted from net income in a cashflow statement if it doesn't affect operational cash?
amazing content! Thank you for sharing.
How can I get another company balance sheet from any platform
Thanks for sharing!
My pleasure thanks for checking it out Justin!
would love to see a model around social commerce
That's a great suggestion and such a fascinating space. Will put it on my list thanks for the suggestion Muhammad!
Thanks so much!
You got it!
Where is the cash flow and Balance Sheet? How to determine how much money we need to raise and breakeven analysis?
why no tax/EBITDA considerations in the model?
and if I may suggest command + Shift + right arrow instead of shift + right arrow only :)
Thanks 😊 always trying to improve!
Hello sir. Maybe I get the question in excel form
Hi - not sure I understand the question, but I'm happy to help. Cheers