Video: How Should You Build Your Startup’s Forecast?

You’re going to build a three-year plan, and you’re going to start with a top-down approach.

This is either going to be your KPIs, or your destinations, of where you want your business to be over the next three years.

Some examples of what you’re going to target are your target growth, your gross profit, and your distribution of your operating expenses, including research and development, sales and marketing, and G and A. These landing zones, or destinations are going to be based on benchmarks from the best in breed companies that your investors are going to want to see you achieve.

After your top down, that’s right, you guessed it, we’re going to build a bottom up. And this is going to be your people and compensation, marketing programs and initiatives, and a product roadmap in modernization plans.

Next, you’re going to marry the bottoms up and the top down, to get to your actual plan. You’re going to create a worst, expected, and best case scenarios, so you know the full scenarios of where your business is going to be over the next three years.

And that’s how we architect your startup’s forecast.