financial-model

Financial Model

Purpose

Design and document a comprehensive financial model that delivers actionable, measurable results. This skill provides a structured process with quality validation, ensuring professional-grade output every time.

Category: Finance & Accounting

Inputs

Required

• Objective: What you want to achieve with this deliverable
• Time Period: The timeframe for analysis or projection

Optional

• Historical Data: Previous period data for comparison
• Assumptions: Key assumptions to use in calculations

System Context

Before starting:

• Read memory.md for current project context and priorities
• Check knowledge-base.md for relevant learned rules or constraints
• Review any existing related documents in the project
• Note any active tasks in Task Board.md that relate to this deliverable

Process

Step 1: Context & Research

• Review any existing financial model documents in the project
• Check knowledge-base.md for relevant learned rules or constraints
• Check memory.md for current project context and priorities
• Identify key stakeholders and their requirements
• Select the most appropriate framework: Three Statement Model, DCF Valuation, Comparable Company Analysis

Step 2: Analysis & Framework Application

• Apply the selected framework to structure the financial model
• Identify gaps, opportunities, and risks
• Define success metrics: Gross Margin, Net Margin, EBITDA, Burn Rate
• Document assumptions and dependencies
• Validate approach against industry best practices

Step 3: Build the Deliverable

• Structure the financial model using the output format below
• Include specific, actionable recommendations — not generic advice
• Add concrete numbers, timelines, and benchmarks where applicable
• Cross-reference with existing project documents for consistency
• Ensure every section adds value — remove filler

Step 4: Quality Validation

• All required inputs have been addressed
• Recommendations are specific and actionable (not vague)
• Numbers and benchmarks are realistic and sourced
• Output format matches the specification below
• No contradictions with knowledge-base rules
• Follows best practice: Never build a model without clearly stating assumptions

Output Format

# Financial Model

## Executive Summary
[2-3 sentence overview of the deliverable and key recommendations]

## Context & Objectives
- **Objective**: [What this achieves]
- **Audience**: [Who this is for]
- **Timeline**: [When this applies]

## Analysis
[Structured analysis using the selected framework]

## Recommendations
1. [Specific, actionable recommendation with expected impact]
2. [Specific, actionable recommendation with expected impact]
3. [Specific, actionable recommendation with expected impact]

## Implementation
| Action | Owner | Timeline | Priority |
|--------|-------|----------|----------|
| [Action item] | [Who] | [When] | [High/Medium/Low] |

## Success Metrics
| Metric | Current | Target | Measurement Method |
|--------|---------|--------|-------------------|
| [KPI] | [Baseline] | [Goal] | [How to measure] |

## Risks & Mitigations
| Risk | Likelihood | Impact | Mitigation |
|------|-----------|--------|------------|
| [Risk] | [H/M/L] | [H/M/L] | [Action] |

## Next Steps
- [ ] [Immediate next action]
- [ ] [Follow-up action]
- [ ] [Review date]

Applicable Frameworks

• Three Statement Model
• DCF Valuation
• Comparable Company Analysis
• Zero-Based Budgeting
• Rolling Forecast
• Scenario Planning (Bull/Base/Bear)
• Unit Economics

Key Metrics

• Gross Margin
• Net Margin
• EBITDA
• Burn Rate
• Runway
• CAC Payback Period
• Rule of 40
• Current Ratio
• Quick Ratio

Best Practices

• Never build a model without clearly stating assumptions
• Separate inputs from calculations from outputs
• Use sensitivity analysis on top 3 variables
• Monthly close within 5 business days
• Forecast accuracy within 10% of actuals

After Completion

• Update memory.md if this deliverable changes project context or priorities
• Add any reusable learnings to knowledge-nominations.md
• If follow-up actions were identified, add them to Task Board.md
• Recommend related skills if additional work is needed