Financial Projection Presentation

Best Practices in Developing Projections Models to Support Strategic Planning Strategic thinking, planning and evaluating strategic alternatives must be supported by a strong long-term projections (LTP) model. Best practices include the following: A comprehensive model is required to effectively evaluate financial performance, financing requirements and value creation. This requires P&L, Balance Sheet and Cash Flow statements, Key Performance Metrics (e.g. ROIC) and Valuation Analysis. The potential for value creation should be a primary factor in evaluating strategic plans.   Incorporate and Review Historical Performance. In developing a model for use in LTPs, it is important to incorporate history (3-4 years). The inclusion of history helps to identify key drivers, trends and interrelationships that are critical to projecting future performance. Second, it provides confidence in the relationship between these drivers and the actual financial results posted in prior years represented in the LTP model. Identify and Evaluate Key Assumptions and Business Drivers. Critical assumptions and business drivers that will affect future performance must be explicitly identified. Too often, these are buried in formulas in a model that reduces the ability to review, test and modify. Key assumptions will vary for each individual business. Market and competitive forces, product life cycles and introduction plans are generally important. Key costs drivers must be identified and incorporated into LTP models. Critical assumptions must be documented, reviewed and tested. Identify Strategic Issues. Key Strategic issues must be considered in the development of LTPs. These may include changes in the market, competitive threats, addressing weaknesses and human capital gaps, strategic investments and many other issues that will impact future financial performance. Robust and Flexible to support evaluation of Strategic Alternatives and Scenarios. The model should be flexible to facilitate changes in assumptions, scenario analysis and evaluation of strategic alternatives. High Impact Output (Presentation) Summary. Key performance measures and proforma valuation analysis should be auto generated within the model to facilitate summarization and presentation and enable changes and scenario analysis. Adapted from “Financial Management: Partner in Driving Performance and Value,” chapter 21, Long-Term Projections.

The financial projections slide in your pitch deck isn’t just a set of numbers. It’s a trust-building tool that shows investors how you’re turning your startup vision into a financial reality. Here are 4 ways to make sure your financials slide doesn’t fall flat: 1️⃣ Show Scalable Revenue Investors want to see growth, but not just on paper. Include recurring revenue (for SaaS), average revenue per customer, and gross margin. Keep your projections realistic and tied to actual growth levers. 2️⃣ Highlight Operational Metrics Don’t focus on profit alone. Show metrics like Customer Acquisition Cost (CAC) and Lifetime Value (LTV). This demonstrates you understand how to grow and scale sustainably. 3️⃣ Visualize, Don’t Overload Your slide should offer clarity, not confusion. Use simple charts—line graphs for revenue growth, pie charts for expense breakdowns. Keep it neat, concise, and visually appealing. Investors need to digest your data, not drown in it 4️⃣ Address Key Financial Milestones Investors value progress. Showcase key milestones like revenue growth, partnerships, reduced CAC, and your roadmap to breakeven or profitability. By mastering your financial projections slide, you’re showing investors that you’ve thought through both the risks and the rewards of your startup journey.🚀 Need help with your pitch deck financials? DM me to chat about building a financial slide that will impress your investors. #finance #financialprojections #pitchdeck #pitch #entrepreneurs #founders #investments #investors #investorpitchdeck #businessplan