/ the art of financial

projections

Guy Kawasaki’s advice on financialprojections from Reality Check

/ underpromise and

overdeliver

/ forecast from the

bottom up

/ don’t go beyound 12-18

months

/ reforecast every three

months

/ don’t let costs get in

front of revenue

/ collaborate with your

investors

/ think in terms of per

unit profitability

/ plan for marketing costs

/ create a one-page

report and stick to it

/ never miss a cost

projection

/ tips for a financial model

Focus on head count

Plan slow, run fast

Run top-down sanity checks

Forget economies of scale

Admit that revenues are a mystery

/ tips for a financial model II

Build with building blocks

Take out ”hope”

Flag your assumptions

Keep market share under 20 percent