Operating Model Template

Why Build an Operating Model? 

When fundraising, entrepreneurs should be ready to answer: "How much money do you need, and how far will that get you?" Typically, the response is, "We need $X million to achieve milestones A, B, and C in Y months." However, upon closer examination, the rationale behind those figures often lacks clarity and consistency. 

Entrepreneurs juggle many tasks: building product, hiring a team, acquiring customers, and preparing pitch materials. Creating a detailed financial model—forecasting revenue, expenses, headcount, and cash needs—often gets delayed, especially without a finance expert on the team.  

Nonetheless, an operating-level financial model is crucial for institutional investors—especially in Series A rounds and beyond. During the due diligence process, many entrepreneurs and investors realize that initial estimates differ significantly from what will actually be needed to hit the stated milestones.  They must then iterate to develop a new financial model—adding weeks and risk to the fundraise. 

A well-developed, clearly presented model shortens the diligence phase and boosts investor confidence in your business. It demonstrates your understanding of how your business will grow and scale. By quantifying assumptions and linking them to historical data, a model helps identify key unknowns and risks. It also aligns expectations with investors—documenting how and when the funds will be spent—enabling you to get off to a running start when the money hits the bank!  

SaaS Operating Model Template 

This template is designed to help entrepreneurs quickly build an effective operating model for recurring revenue SaaS businesses. With minimal input, the model generates a comprehensive Income Statement, Balance Sheet, and Cash Flow Statement.  

Detailed instructions are provided throughout the workbook to ensure a clear and straightforward process. For simplicity, the model does not include calculations for debt, capital expenses, depreciation, or inventory management—though they can be added by a power user. 

We hope this template is helpful, but we know it is not perfect.  If you have suggestions or feedback, please contact us. 

Check out our other startup resources

These materials and the information provided herein are (i) for informational and discussion purposes only and are not intended to be, and shall not be regarded or construed as, a recommendation for a transaction or investment or financial, tax, legal, or other advice of any kind, and (ii) subject to various disclaimers and limitations that are set forth in our Terms of Use. By accessing these materials and the information provided herein, you agree to our Terms of Use, including, without limitation, all of the disclaimers and limitations set forth therein.

Last updated: 12-11-24