Kicking off your first venture? We, at Speed@BDD, are certain that you are being bombarded with terms like financial modeling or representation. We are also quite sure that these terms may evoke complicated ideas especially if you are unfamiliar with the financial aspects of running a business.

Our piece of advice? We believe that every startup founder should know the basics of financial modeling. So what is financial modeling?

Financial modeling is a process used to forecast a company’s future financial performance based on the historical performance of the entity.While it might be a prediction, a financial model provides founders with a good benchmark and can help you run “what-if” scenarios to prepare you for any situation.

Here are some quick tutorials to create your own financial model:

• The Art of Startup Finance from Kauffman FoundersSchool
• Startup Financial Modeling from Techstars
• How to Create a Basic Financial Model from the Founder’s Institute