"The reason for doing financial models is to do a reality check and convince yourself that making a return on investment is a plausible possibility."

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I been missing da blogging, but grand finals and startup pain been calling. And managing the family pets while the world holidays. I'm going to have to blog binge in next few days so I can average up to a decent daily post average ratio. Good list here on business myths :

Ron Garret - Myth #5: Financial models are bogus; "There is no way to know for sure how much money your business is going to make, or how much it will cost to get to market. The reason for doing financial models is to do a reality check and convince yourself that making a return on investment is even a plausible possibility. If you run the numbers and find out that in order to reach break-even you need a customer base that is ten times larger than the currently known market for your product then you should probably rethink things. As Dwight Eisenhower said: plans are useless, but planning is indispensible."

BB : Obviously financial models are great in understanding and planning for costs, and also understanding/tracking the mechanics of how revenue and gross margin is created. Oh, and then after you spend some money at the start it's supposed to scale into this billion dollar market cap beast !