Financial Modelling for Start-ups

Guy Kawasaki's blog has some info from a guy at Redfin on how they did the financial modeling for their startup. Back when I was an Apple junkie I loved Guy Kawasaki. But regardless of that, this is a very interesting and informative article.

This is what my company did not do:

At least in the financial model, give yourself as much time to grow as you can.

Or this:

Since there's a natural limit on growth, be ready for the question: "What would your market-share be in year five?" If it's over 20%, take the jillion-dollar projection down a notch. Even a hit like iPod doesn't have 20% market-share. You'll be lucky to come close to 20% of any market.

But we just might do this, although revenues don't necessarily mean profit:

Hit $100 million in revenues within five years.