financial_planning

# Financial Planning Reference

Startup financial modeling frameworks. Build models that drive decisions, not models that impress investors.

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## 1. Startup Financial Modeling

### Bottoms-Up vs Top-Down

**Top-down model (don't use for operating):**
```
TAM = $10B
SOM = 1% = $100M
Revenue = $100M in year 5
```
This is marketing. You cannot manage a company against these numbers.

**Bottoms-up model (use this):**
```
Year 1 Revenue Build:
  Sales headcount: 3 AEs by Q1, +2 in Q2, +3 in Q4