1. / the art of financial
projections
Guy Kawasaki’s advice on financial
projections from Reality Check

2. / underpromise and
overdeliver

3. / forecast from the
bottom up

4. / don’t go beyound 12-18
months

5. / reforecast every three
months

6. / don’t let costs get in
front of revenue

7. / collaborate with your
investors

8. / think in terms of per
unit profitability

9. / plan for marketing costs

10. / create a one-page
report and stick to it

11. / never miss a cost
projection

12. / 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

13. / tips for a financial model II
Build with building blocks
Take out ”hope”
Flag your assumptions
Keep market share under 20 percent