Do You Need Three Models

Build the financial model based on the revenue phases that the company will go through.

There are three revenue phases that a company passes through: Referenceable Revenue, Scalable Revenue, and Profitable Revenue. The time, revenue, and costs that a company incurs in each phase can vary significantly. Building a financial model and applying appropriate values to each model variable based on the specific revenue phase will provide a far more realistic forecast than making general, phase-invariant assumptions.