How to Build a 5-Year Financial Model [Archive.org URL]

Every financial model has several parts that need to be put together. It also requires many assumptions, which act as the glue holding the parts together. The model allows us to contemplate what the future of our business will look like, a projection of what might be. Every financial plan needs, at a minimum, the following components, or worksheets:
– Marketing
– Sales
– Cost of Goods Sold (COGS)
– Payroll
– Income Statement
– Balance Sheet
– Statement of Cash Flows

Every industry will use these components a little differently, but here’s a brief overview of each.

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